Bajaj Auto can invest an additional ₹ 1,360 crore to support Europe’s famous motorcycle brand KTM. The investment will be made through the Netherlands -based Bajaj Auto International Holdings BV (BaihbV), which holds a 49.9% stake in Austria’s Pierler Bajaj AG (PBAG).
PBAG holds about 75% shares of KTM motorcycles owner Pierler Mobility AG.
Why does KTM want emergency fund?
The KTM has already indicated that it is going through a economic crisis and needs additional funds to maintain herself.
In November 2024, KTM announced that it was interacting with lenders and its promoters to save the company. Now Bajaj Auto International Holdings BV has approved investment of € 150 million (about ₹ 1,360 crore).
This fund will be used to strengthen KTM’s European operations.
Can Bajaj Auto become the largest shareholder of KTM?
It is not yet clear whether Bajaj will achieve the biggest stake in Auto KTM after this investment.
It may be that the current promoter of KTM, Austrian businessman Stephen Pierner also invest equal amount so that their shares are balanced.
Bajaj Auto has a strong manufacturing and marketing agreement with KTM. The stability of the KTM brand is important for its operations in India.
Bajaj-KTM partnership journey
1992: Stephen Pierler acquired the KTM when it was facing bankruptcy. 2007: Bajaj became an investor and strategic partner by purchasing 14.5% stake in Auto KTM. 2010s: KTM was included in Europe’s largest motorcycle manufacturer companies. Now: Bajaj Auto made licensing and manufacturing agreements with KTM and enhanced investment.
However, the company recently admitted that KTM’s current European operations are not durable and need to be shortened.
Story of KTM: How did this big motorcycle brand of Europe become?
The KTM was established in 1934 in Matighofen, Austria.
Initially it was a metal workshop, known as Kronref, Trankenpolls, Matighofen (KTM). The production of the first motorcycle R100 began in 1954. By the 1970s, KTM became famous for its off-road motorcycles. In the early 1990s, the company got into a serious economic crisis and declared bankruptcy in 1991. In 1992, Stephen Pierler revived and revived it and included it among Europe’s largest bike companies.
Future Strategy: Will Bajaj Auto be able to save KTM?
Bajaj Auto’s investment in KTM indicates that:
Bajaj will play an important role in securing the future of Auto KTM. The KTM will help bring stability to its European market and improve the financial situation. Bajaj-KTM partnership may be further stronger, which will increase the chances of launching a new premium bike in India.
