Bajaj Auto to acquire Austrian motorcycle maker KTM in ₹7,765 crore deal

Bajaj Auto's Netherlands-based subsidiary BAIHBV will take control of Austria's KTM as part of a revival and debt restructuring effort approved by an Austrian court

Bajaj Auto on Thursday announced that it will acquire majority control of Austrian motorcycle manufacturer KTM AG through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV).

 

The move marks a significant shift in Bajaj Auto’s role—from a minority stakeholder to a majority owner—and is expected to strengthen the company’s position in the premium and sports motorcycle segment.

 

Funding package to stabilise KTM’s finances

 

The company stated that the acquisition will aid KTM’s ongoing restructuring, ensure operational continuity, and help expand Bajaj’s global reach in the motorcycle market.

 

€800 mn funding commitment to support debt restructuring

 

BAIHBV has committed to a total investment of €800 million (around ₹7,765 crore), which includes:

 

• €450 million (₹4,365 crore) as a secured term loan to KTM AG

• €150 million (₹1,455 crore) via convertible bonds in Pierer Bajaj AG (PBAG)

• €200 million (₹1,945 crore) previously infused as shareholder debt

 

Court deadline and funding timeline

 

The funding is aimed at stabilising KTM’s finances by supporting a court-approved debt restructuring programme and providing working capital. Of the total amount, €200 million has already been infused, and the remaining €600 million is currently being disbursed, the company said.

 

These financial measures are designed to meet a court-imposed deadline of 23 May 2025, by which time 30 per cent of creditor claims must be settled. Failure to do so could lead to insolvency proceedings for KTM and its subsidiaries.

 

Regulatory approval sought for PBAG control

 

Bajaj Auto also plans to acquire a controlling interest in PBAG, the parent company of Pierer Mobility AG, which owns KTM AG. This is subject to regulatory approval in Austria. Currently, Bajaj Auto holds an indirect 37.5 per cent stake in KTM through PBAG and Pierer Mobility.

 

Shareholder nod via postal ballot under Sebi rules

 

The Bajaj Auto board has approved seeking post-facto shareholder approval for these related-party transactions through a postal ballot, in line with Sebi regulations.

 

Milestone in Bajaj’s global motorcycle strategy

 

The acquisition marks a significant milestone in Bajaj Auto’s international strategy and is expected to support KTM’s financial recovery and business operations. The two companies already collaborate under a joint development programme based in India.