Bajaj Set To Turn The Tide For KTM As It Saves The Latter From Potential Insolvency

KTM, an Austrian automaker, has faced serious financial difficulties, leading to insolvency concerns. In response, Indian company Bajaj, through its subsidiary Bajaj Auto International Holdings BV, plans to acquire a majority stake in KTM, which it previously held as a minority stakeholder. Bajaj has arranged an €800 million debt funding package to stabilize KTM, with €200 million already utilized for operations and €600 million allocated for creditor repayment. The financial support aims to help KTM restructure and enhance its leadership and collaborations to improve competitiveness.

Saptak Bardhan

Updated May 22, 2025, 05:53 PM IST

The Curious Case Of KTM In India; What’s New And What Does The Future Hold?

Austrian automaker, KTM has had a tumultuous period over the past few months with the company facing insolvency. However, Indian automaker, Bajaj through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV), is making moves to become a majority stakeholder in KTM. Bajaj previously was a minority stakeholder in the company but eyes majority stake in the company, subject to getting all the necessary approvals from regulators.

Bajaj Auto International Holdings BV (BAIHBV) arranged a debt funding package of €800 million to enable the continuity of the KTM business by paying off the creditors. Of the €800 million allocated to KTM by Bajaj, €200 million has been injected in KTM’s functioning whereas €600 million is being infused to help KTM pay its creditors back to get its business back on track.

Bajaj owned approximately 37.5% of KTM through its subsidiary which owned part of a company called Pierer Bajaj AG which owned most of KTM’s holding company, Pierer Mobility AG.

Also Read: Bajaj Records 7 Percent Decline In Total Unit Sales, Witnesses 4 Percent Growth In Export

The situation started going downhill for KTM in November 2024 as the company and some of its subsidiaries started a debt restructuring process. The company proposed a plan to creditors for paying off debts. The creditors accepted a plan which was proposed by the Austrian automaker stating that the creditors would get 30% of their claims in cash. However, the company would face full insolvency if the money wasn’t available by May 23, 2025. Bajaj’s financial injection helped prevent KTM’s insolvency and finalise its restructuring plan by June 2025.

Bajaj is expected to revamp KTM’s leadership and governance while exploring new collaborations to boost the Austrian automaker’s competitive edge.

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Bajaj Set To Turn The Tide For KTM As It Saves The Latter From Potential Insolvency

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