Bajaj Auto’s Bold Takeover of KTM: A New Era for Global Motorcycling

Bajaj Auto is set to become the majority owner of KTM AG, marking a historic shift in the global motorcycle industry. With regulatory approvals in place, the Indian two-wheeler giant is poised to take full control of the Austrian brand’s parent company, Pierer Mobility AG.

This move is more than a financial transaction—it’s a strategic realignment that could reshape the future of performance motorcycling worldwide. Bajaj Auto, already a key stakeholder in KTM for over a decade, is now transitioning from a powerful partner to the dominant force behind the iconic European brand.

🏍️ The Road to Takeover

Bajaj Auto’s relationship with KTM began in 2007, when it acquired a 14.5% stake in the Austrian motorcycle manufacturer. Over the years, this stake grew steadily, and by 2025, Bajaj held 49.9% of Pierer Bajaj AG (PBAG), the joint venture that controls Pierer Mobility AG (PMAG), KTM’s parent company.

In October 2025, Bajaj Auto received regulatory clearance from the Austrian Takeover Commission to assume full control of PMAG through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). This approval was granted under a “restructuring privilege,” allowing Bajaj to bypass the usual requirement of making a mandatory public takeover offer to other shareholders.

💸 Financial Lifeline for KTM

KTM has faced significant financial headwinds in recent years. Mounting debt and operational inefficiencies led the company to initiate a legal restructuring process in late 2024. In early 2025, creditors approved a plan that involved a one-time payment of 30% of dues. To facilitate this, Bajaj stepped in with a ₹5,445 crore unsecured loan, effectively rescuing KTM from potential insolvency.

This financial intervention not only stabilized KTM’s operations but also paved the way for Bajaj to increase its influence. With most regulatory hurdles cleared and European Commission approval expected by November 2025, Bajaj’s stake in KTM is set to rise to 76%, making it the majority shareholder.

🔧 Strategic Restructuring Ahead

The takeover isn’t just about ownership—it’s about transformation. Bajaj plans to implement a sweeping restructuring of KTM’s operations. The goal is to streamline production, reduce costs, and enhance efficiency across the group. This could involve changes in corporate philosophy, workforce realignment, and potential shifts in manufacturing locations.

Rajiv Bajaj, Managing Director of Bajaj Auto, has emphasized that KTM remains a “very important” brand for the company. The takeover is seen as a long-term investment in global innovation, performance engineering, and brand synergy.

🌍 Global Implications

This acquisition positions Bajaj Auto as a formidable player in the global motorcycle market. KTM, along with its sister brands Husqvarna and GASGAS, brings a strong European presence and a reputation for high-performance bikes. Bajaj, on the other hand, brings scale, cost efficiency, and access to emerging markets.

Together, the combined entity could challenge established giants like Honda, Yamaha, and BMW Motorrad. The partnership also opens doors for deeper R&D collaboration, shared platforms, and expanded product portfolios tailored for both premium and mass-market segments.

🇮🇳 A Proud Moment for Indian Industry

Bajaj Auto’s takeover of KTM is a landmark moment for Indian manufacturing. It underscores the growing influence of Indian companies on the global stage and highlights the country’s capabilities in engineering, design, and strategic investment.

This move also reflects a broader trend of Indian firms acquiring and revitalizing legacy global brands—similar to Tata’s acquisition of Jaguar Land Rover. It’s a testament to India’s evolving role in the global economy and its potential to lead in high-value manufacturing sectors.

🔮 What Lies Ahead?

As Bajaj Auto prepares to finalize the takeover, all eyes are on how the integration will unfold. Will KTM’s European identity remain intact? How will the restructuring affect employees and production sites? And most importantly, what new products and innovations will emerge from this powerful alliance?

One thing is certain: the Bajaj-KTM story is entering an exciting new chapter. With bold leadership, strategic vision, and a shared passion for motorcycling, this partnership is set to redefine the industry’s future.