KTM has been struggling with financial difficulties for some time, and reports indicate that Bajaj Auto India may step in to provide support. The partnership between the Austrian motorcycle brand and Bajaj began in 2007 when Bajaj Auto acquired a 14.5% stake in KTM. Currently, Bajaj holds a 49.9% stake in Pierer Bajaj AG, which in turn owns 75% of KTM’s parent company, Pierer Mobility AG.
Why Is Bajaj Interested in Saving KTM?
Bajaj manufactures a range of small-displacement motorcycles for KTM, including:
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KTM 125 Duke
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KTM 200 Duke
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KTM 250 Duke
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KTM RC 125
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KTM RC 200
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KTM RC GP
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KTM 250 Adventure
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KTM 390 Adventure
With such an extensive lineup and KTM’s strong presence in the Indian market, it makes strategic sense for Bajaj to support KTM. While the motorcycles are produced in India, KTM’s research and development (R&D) operations are based in Austria, ensuring the brand’s innovative edge.
Bajaj’s Rs 1,360 Crore Investment
Several sources suggest that Bajaj plans to invest Rs 1,360 crore in KTM. If the deal is finalised, Bajaj could become KTM’s largest shareholder, potentially restructuring the company with its operational approach. Given KTM’s strong motorsports and adventure biking reputation, this acquisition would significantly enhance Bajaj’s global brand value.
Conclusion
Bajaj’s potential investment in KTM represents a strategic opportunity to strengthen its position in domestic and international motorcycle markets. By securing a controlling stake in KTM, Bajaj can leverage the brand’s global appeal and advanced R&D capabilities while expanding its footprint in the premium motorcycle segment. If successful, this move could mark a new era of growth and innovation for both companies.
