Bajaj Auto to Take Majority Control of KTM in €800 Million Debt Rescue Deal
India’s Bajaj Auto has announced plans to gain majority control of Austrian motorcycle manufacturer KTM AG as part of an €800 million ($906.2 million) debt restructuring aimed at reviving the financially troubled company.
Since 2007, Bajaj has held a minority stake in KTM, but this strategic move will elevate it to the leading shareholder role, aligning governance and injecting fresh capital to stabilize and grow KTM’s operations.
KTM AG, which designs and sells motorcycles under the KTM, Husqvarna, and GASGAS brands across about 80 countries, entered court-supervised restructuring in November 2024 due to severe liquidity challenges. As part of the plan approved by creditors in February 2025, creditors will receive 30% of their claims in cash by May 23.
Bajaj has already injected €200 million into KTM and plans to invest an additional €600 million to repay creditors and restart operations. The funding will be structured as a secured term loan and convertible bonds through Bajaj’s Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). Through this process, Bajaj will acquire controlling stakes in KTM’s parent companies, including Pierer Bajaj AG and Pierer Mobility AG.
The collaboration between Bajaj and KTM has evolved over nearly two decades, with Bajaj playing a key role in product development and exporting KTM motorcycles from India to global markets. This transition from a minority investor to majority owner reinforces Bajaj’s commitment to the premium motorcycle segment and its ambition to shape the future of high-performance bikes both in India and internationally.
