 "No impact on domestic sales of KTM, exports hit, says Bajaj Auto")
Austrian motorcycle maker KTM, which is seeking to raise funding of 1–2 billion euros and is in talks with banks and investors as part of a debt restructuring process, is also in discussions with Bajaj Auto for potential investments, a senior Bajaj Auto official said. Moreover, he added that the current situation at the European two-wheeler major, whose chief executive officer (CEO) Stefan Pierer stepped down recently, has not impacted the India sales of its bikes.
Speaking to reporters, Rakesh Sharma, executive director (ED), Bajaj Auto, said that the KTM bikes sold in India are made at Chakan and distributed through Bajaj's network, and thus, domestic sales have faced no impact. "However, exports have been hit as KTM distributes to various markets of the world. It was slowing down already and is currently on hold," Sharma said, adding that from a level of 6,500 units per month in Q3FY25, it has come down to 3,500 units a month. The KTM brand's share in Bajaj's exports fell from 6 per cent earlier to 3 per cent in Q3FY25.
Sharma also stated that the Austrian bike maker is in talks with banks and investors, including Bajaj Auto. "It has to put together a plan of revival by February 25; otherwise, it would be declared insolvent. We are participating in discussions and engaging with them," Sharma said.
It is not yet clear if Bajaj Auto would use this opportunity to increase its indirect stake in the Austrian automaker. Bajaj Auto owns 49.9 per cent of its partner, Pierer Bajaj AG (PBAG), in Austria through its wholly-owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV), in the Netherlands.