Bajaj Auto, one of India’s top two-wheeler manufacturers, is making a bold move to increase its control over KTM AG by investing €800 million into the Austrian motorcycle brand. The move is aimed at securing majority ownership and reinforcing KTM’s financial and operational foundations.
Deepening an International Alliance
Currently holding around 48% of KTM via its Dutch arm, Bajaj plans to raise that stake through this fresh capital infusion. The funds are expected to help KTM stabilize operations, invest in electric mobility, and regain ground in competitive global markets.
KTM, famous for its Duke and RC models, has faced pressure from stricter regulations and market slowdowns in Europe and the U.S. Bajaj’s investment is seen as a strategic boost to help KTM expand into emerging markets such as India, Latin America, and Southeast Asia.
Boosting Innovation and Expansion
Insiders say the €800 million will fuel new product development—especially in electric vehicles—while upgrading factories and widening KTM’s global reach. Bajaj also stands to benefit, using KTM’s strong premium image to strengthen its own international presence.
This investment signals Bajaj’s ambition to grow beyond value motorcycles and become a serious contender in the high-end and electric segments of the global two-wheeler market.
Leadership Perspective
Rajiv Bajaj, Managing Director of Bajaj Auto, remarked, “We see KTM as a crucial part of our future plans. This move helps us grow together in the evolving mobility space.”
This deal fits with Bajaj’s growing push into EVs, including the electric Chetak scooter and its joint venture with Triumph. A controlling stake in KTM would allow for tighter integration and faster product launches.
What Lies Ahead
Bajaj’s decision reflects a growing trend of strategic partnerships and global consolidation in the auto sector. With this investment, both Bajaj and KTM are expected to gain ground in the shifting landscape of premium and electric motorcycles.
Final steps like regulatory approvals and shareholder votes remain, but if completed, this could mark a turning point for both companies—opening new growth avenues in markets around the world.
