In a landmark move for the global motorcycle industry, India’s Bajaj Auto has announced plans to take control of KTM. The strategic takeover follows KTM’s long-standing financial struggles, with Bajaj injecting a crucial €600 million that the Austrian manufacturer desperately needed in order to meet a court-mandated requirement to pay down its debt to creditors. 

Per the court order, KTM was required to settle 30% of outstanding creditor claims by May 23, 2025, to avoid insolvency. This cash injection, landing just days before the deadline, ensures the three motorcycle brands owned by the conglomerate (KTM, Husqvarna and GasGas) will avoid liquidation and remain operational.

According to a statement made by Bajaj Auto, “With this action and post requisite approvals coming through, Bajaj will shift gears from hitherto being a dormant minority investor to a majority owner in the global KTM company.” Bajaj’s exact ownership percentage in KTM is yet to be released. 

While this move is designed to restart KTM’s manufacturing, resume global supply chain operations and ensure the company’s long-term growth, it also marks a major turning point in the relationship between KTM and Bajaj. For nearly two decades, the Indian manufacturer has been involved in developing, producing and exporting motorcycles for KTM while maintaining its position as a minority investor.

Bajaj goes on to state: “This twin move of taking ownership and paring down debt by providing liquidity at a crucial stage, positions Bajaj Auto as a driving force in shaping the future of one of world’s most admired high performance motorcycle companies.”

Next Steps Planned

Seeing the company being pulled back from the brink of liquidation is certainly good news for owners of KTM, Husqvarna and GasGas models, as well as the motorcycle industry as a whole. Now with creditors appeased, what does the future hold? This ownership restructuring could mark a major change in the trajectory of KTM as a leading manufacturer of performance-based motorcycles. KTM CEO, Gottfried Neumeister, reacted to the news with the following statement: 

“Today we have been given the opportunity to continue the history of KTM. Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made available. The existing sites – in particular our main plant in Mattighofen/Munderfing – will remain the basis for our future success. This means that we will continue to be an important employer for the entire region. In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible. I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world’s best-known motorcycle brands, which has a unique community.”

Pending regulatory approvals, Bajaj Auto is already making plans to turnaround KTM outlining four key steps:

1. Initiating a revamp of the governance framework including reconstituting the Board.
2. Commencing the journey of turnaround – putting in place a program aimed at restoring momentum and competitive growth while driving the financial viability of the company.
3. Implementing measures that widen the remit of the existing joint development program between the companies and pursuing synergistic opportunities in both the front end and back end.
4. Exploring potential partnerships and collaborations to build sustainable competitive advantage and long-term value creation.

With a strategy focused on revamping management, streamlining operations and strengthening joint development between Austria and India, along with Bajaj’s strong financial backing, this move has the potential to not only restore market confidence, but spark a new era of global growth for KTM. For motorcycle enthusiasts however, there’s also the concern that this could mean an end of an era where KTM focused primarily on producing high-performance motorcycles and a move toward mainly profit-focused, practical machines. We can only hope the “Ready to Race” ethos is retained and doesn’t die in the process as Bajaj Auto reshapes the future course of one of the world’s most admired motorcycle companies.