Bajaj Set to Control KTM: Rajiv Bajaj Confirms Key Details

Rajiv Bajaj Spills Timeline for Bajaj’s KTM Acquisition

Bajaj Auto is moving to take full control of KTM AG. The European Commission is expected to approve the deal by November 2025. This approval will raise Bajaj Auto's ownership in the Austrian motorcycle company to 76 percent. This change makes Bajaj Auto the main owner, giving them control over Pierer Mobility AG, which owns KTM, Husqvarna, and GASGAS. This step is very important for Bajaj Auto in the global performance motorcycle market.

The Financial Rescue

Bajaj Auto first invested in KTM in May 2025, after the European company faced financial problems. Most approvals for the deal are now complete, with only the European takeover commission's final clearance pending. KTM started a legal process in late 2024 to fix its finances due to high debt.

Creditors agreed to KTM’s plan in February 2025 and they accepted 30 percent of their money in one payment. Bajaj Auto provided a rescue package to make this payment and prevent the company from failing. The total investment is 800 million euros. This money covered a secured loan to KTM AG, convertible bonds for Pierer Bajaj AG, and some older debt.

New Management and Cost Cuts

After final approvals, Bajaj Auto will change how KTM is managed. They plan to reorganize the board, cut unnecessary costs, and make manufacturing more efficient. The company already reduced the number of employees from 6,000 to 4,000, mostly in office roles. They expect to cut research, marketing, and administrative costs by over 50 percent.

Rajiv Bajaj, a key person at Bajaj Auto, said that KTM’s earlier problems came from poor management. As a minority owner before, Bajaj Auto had limited power, but now they will control all decisions.

Global Strategy and Production Shift

With the financial issues fixed, Bajaj Auto wants to make KTM profitable again by controlling costs better and improving the supply chain. Production of some KTM motorcycles could move partly to India. This follows a trend set by other European brands.

The purchase gives Bajaj Auto full control of Pierer Bajaj AG, linking them directly to KTM, Husqvarna, and GASGAS. It also lets Bajaj use KTM’s advanced engineering for future motorcycles with bigger engines. Future plans include possibly making KTM’s twin-cylinder engine platforms in India, which are currently made in China. This move would help Bajaj reach its goal of becoming a top global manufacturer. The deal helps Bajaj Auto grow in Europe and access KTM’s technology for models up to 990cc.

Deep Analysis and Insights:

Bajaj Auto's move to a 76 percent stake in KTM AG is a major strategic shift, not just a financial one. This control gives Bajaj direct access to KTM's high-performance technology and global network, a significant advantage over competitors. The ability to move production of engines, like the twin-cylinder platforms, to India will drastically lower manufacturing costs. This process, known as localization, combines Bajaj's efficient production methods with KTM's premium engineering. This integration should quickly boost KTM's profit margins, which suffered under the previous debt. Furthermore, this control allows Bajaj to shape the future design of high-capacity motorcycles up to 990cc, strengthening its position against rivals like Royal Enfield in the global mid-capacity segment. This strategic control makes Bajaj Auto a central and powerful force in the performance motorcycle world.