Bajaj Auto Secures €800 Million Loan to Takeover KTM

Bajaj Auto is set to fully acquire Austrian motorcycle brand KTM through its subsidiary Bajaj Auto International Holdings BV (BAIHBV). This move aims to rescue KTM from bankruptcy and revive its global operations. Bajaj has secured €800 million (Rs 7,762 crore) in debt funding to settle KTM’s debts and provide fresh capital for day-to-day operations. Bajaj Auto has already invested €200 million (Rs 1,940 crore) in KTM over the past few months. The company currently owns a 37.5% stake in KTM and is now aiming for full control. The loan amount raised by BAIHBV is part of this rescue effort. Final approval from Austrian authorities is expected by mid-June 2025, after which creditor payments and restructuring will begin.

KTM’s revival depends on key approvals from Austrian regulators. These include the Takeover Commission, Foreign Investment Control, and Merger Control Authorities. The Austrian Court must also issue final restructuring orders. Until all clearances are in place, KTM’s current structure will continue. Once approvals are granted, Bajaj will restart KTM’s motorcycle production and global distribution of spare parts and accessories.

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After taking full control, Bajaj Auto plans to rework KTM’s Board. New members from Bajaj may join KTM’s leadership team. The main goals will be to restart bike production, support dealers, and restore the KTM brand’s image. Bajaj also aims to improve operations and boost KTM’s presence in the premium motorcycle market.

KTM has suffered production delays in recent months. Bajaj Auto’s revival strategy includes restarting motorcycle manufacturing and re-establishing a stable supply chain for spare parts and merchandise. Dealers and customers can expect a step-by-step return to regular business as Bajaj works to rebuild brand trust and performance.

This takeover marks a turning point for KTM. Bajaj Auto’s strong finances and experience in two-wheeler manufacturing could bring KTM back as a strong global player. By using its global network and strategic know-how, Bajaj is preparing to reposition KTM in the premium motorcycle segment and ensure long-term growth.

KTM in Motorsports

The future of KTM’s motorsport division remains uncertain, as there has been no official statement regarding its continued participation in MotoGP, Dakar, and other racing events. With Bajaj Auto focusing on reviving KTM’s core operations, questions remain about how motorsport activities will fit into the broader recovery plan.

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Motorsport has long been a key part of KTM’s brand identity, especially in events like MotoGP and the Dakar Rally. However, with the company currently undergoing financial restructuring, the fate of its racing teams is yet to be confirmed. Industry observers are watching closely to see whether KTM will maintain its competitive presence on the global motorsport stage.