Bajaj Saves KTM with €800 Million Infusion
KTM has been thrown a lifeline at the 11th hour by their long-time partner Bajaj Auto, as most expected. And in doing so, Bajaj is set to become the majority and controlling stakeholder in Team Orange.
The news came on the back of a news that KTM had secured an €600 million infusion last week. Rumours began circulating that it was Bajaj who brought that bag of cash. However, KTM did not disclose the “donating” party while Bajaj kept mum.
And then…
Come Thursday, Bajaj Auto made the formal announcement that they plan to acquire majority control of KTM AG, through their wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). Besides that, the full funding plan will be €800 million in order to stabilise KTM’s finances and support its ongoing restructuring.
The deal marks a significant transformation in Bajaj Auto’s global two-wheeler strategy, as it transitions from a minority shareholder to majority stakeholder in KTM. The Pune-based company has long partnered with KTM, but this move will give it deeper operational and financial control, bolstering its position in the high-performance and sports motorcycle segment globally.
According to Bajaj Auto’s stock exchange filing dated May 22, 2025, the Board approved the proposal on May 21. The funding initiative is designed to provide immediate liquidity to KTM and meet a court-imposed deadline in Austria related to the company’s debt restructuring plan.
May 23rd deadline
The funding is aimed at meeting a critical deadline of May 23, 2025 set by Austrian courts. Under the court-approved restructuring plan, KTM must settle 30 percent of creditor claims by that date. Failure to do so could result in insolvency proceedings and removal from self-administration.
Bajaj Auto’s financial backing is essential to avert this scenario, ensuring KTM’s operational continuity and shielding its global reputation as a premium motorcycle brand.
Breakdown of the €800 Million rescue package
As part of the rescue package, BAIHBV has executed a facility agreement to extend a secured loan of €450 million to KTM AG. This will be held in escrow until approved by the court in Austria. Additionally, Bajaj’s subsidiary has subscribed to €150 million worth of convertible bonds issued by Pierer Bajaj AG (PBAG), a KTM group entity.
These new commitments are in addition to the €200 million already infused by Bajaj as shareholder debt, bringing the total financial backing to €800 million.
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