Several sources suggest that Bajaj plans to invest 1,360 crore in Rescue of KTM, making it highly likely that the funds will be used to Shore up KTM’s finance in Europe. The investment in the financial trouble hit KTM will be in the form of equity, capital, or loan. It is not clear yet If Bajaj Auto the majority stakeholder of KTM after making the investment. However, it will be interesting to see how both the Auto manufacturers work together.
Bajaj Auto and KTM partnership
Bajaj Auto partnership with KTM dates back to 2007 when the Indian two wheeler brand picked up a 14.5 percent stake in KTM power sports AG and launched a brand in Indian, Bajaj Auto International Holdings BV (BAIBHBV) gradually increased it’s stake to 48% in 2021.
Company that holds a 49.9 percent stake in Piercer Bajaj AG, which owns 75 percent of KTM’s parent company, Piercer Mobility AG. But currently, Bajaj Auto manufacturers small displacement KTM and Husqvarna motorcycles at it’s plant .
Why is Bajaj interested in saving KTM ?
Bajaj aims to secure KTM’s future while strengthening it’s own global presence in premium motorcycle segment .