KTM Secures Lifeline as Bajaj Auto Becomes Main Investor
- 10FoldMoto
- 5 days ago
- 3 min read
Date: May 22, 2025
Author: Robert Couture – 10FoldMoto
In a bold move that reshapes the global motorcycle industry, KTM AG, the iconic Austrian motorcycle manufacturer, has secured an €800 million investment from its long-time Indian partner, Bajaj Auto, effectively saving the brand from the brink of bankruptcy. The deal cements Bajaj Auto’s new position not just as a major stakeholder — but as the primary investor and decision-maker in KTM’s future.
A Crisis Narrowly Avoided.
The investment was made through Bajaj Auto International Holdings B.V., a Netherlands-based subsidiary, and comprises three key parts:
€450 million as a secured term loan to KTM AG
€150 million in convertible bonds through Pierer Bajaj AG
€200 million in previously issued shareholder debt
This restructuring was approved under Austrian court proceedings, allowing KTM to legally and operationally regroup while maintaining continuity for both workers and dealers worldwide.
From Strategic Partner to Primary Owner.
This move isn’t just a bailout — it’s a power shift.
Bajaj Auto has been a strategic investor in KTM since 2007, starting with a 14.5% minority stake. Over the years, that share gradually increased, and now, with this latest injection of capital, Bajaj becomes the largest and most influential shareholder in KTM’s parent company, Pierer Mobility AG.
This means Bajaj now holds majority control, with decision-making power across manufacturing, brand strategy, and global expansion plans. The move could be described as both a rescue and a takeover — executed with the precision of a seasoned industry player.
What This Means for the Industry.
The implications of this shift are wide-ranging:
🏍️ KTM’s Survival and Revamp
The financial rescue means KTM can avoid insolvency, retain its workforce, continue producing motorcycles, and possibly accelerate product development across its Duke, Adventure, and Enduro lines.
🌍 Global Market Access
With Bajaj’s massive manufacturing infrastructure and deep penetration in developing markets, KTM is now positioned to expand into Asia, Africa, and Latin America — markets where it had limited reach before.
🔧 Shared R&D and Innovation
Expect tighter collaboration on electric motorcycles, low-displacement models, and emerging technologies. Bajaj has proven engineering and production capabilities that KTM can now leverage at scale.
🏁 Racing Heritage Intact
KTM’s storied legacy in MotoGP, Dakar, and motocross remains safe — for now. With Bajaj’s backing, KTM can continue to be a racing powerhouse rather than a fading legend. What’s Next for KTM and Bajaj?
With the ink dry on the investment and restructuring plans underway, KTM enters a new chapter — one marked by Indian capital, Austrian engineering, and a shared ambition to lead the next generation of two-wheeled innovation.
For Bajaj, the move elevates them from being a respected manufacturer in the subcontinent to a global power player in the motorcycle world — with brands like KTM and Husqvarna under their influence.
“This partnership has always been built on trust and mutual growth. With Bajaj now at the helm, KTM can accelerate into a new era.”– Official KTM press release, May 2025
Final Thoughts.
Whether you’re a KTM fan, a moto-enthusiast, or just watching the global economy unfold, this is a defining moment in modern motorcycle history. It’s not every day you see a European legacy brand rescued by an Indian giant — and possibly made stronger in the process.
🏁 Stay tuned for more updates on this story and other industry-shaking news at 10FoldSteel.ca/blog
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