In a bold financial maneuver, Bajaj Auto International Holdings—a fully owned arm of Bajaj Auto—has secured ₹5,431 crore to support its long-time ally, KTM, the iconic Austrian motorcycle brand. Holding a 49.9% stake in KTM, Bajaj is clearly all-in on ensuring the company’s stability and future success.
With KTM up against a pressing financial deadline on May 23, this well-timed move could be the push it needs to stay afloat. But this is about more than just capital—it’s a strategic play in the global two-wheeler game.
Support
Facing urgent liquidity issues, KTM got a crucial boost through a one-year unsecured loan arranged by three financial giants: JP Morgan Chase, DBS Bank, and Citigroup Global Markets. This isn’t just a cash infusion—it’s designed to help KTM:
- Continue developing new models
- Scale up production operations
- Streamline its supply chain
This isn’t a rescue—it’s leverage. Bajaj is not just helping KTM survive, but cementing its own influence on the global motorcycle scene.
Stakes
Bajaj owns nearly half of KTM, and their partnership spans everything from high-performance street bikes to affordable small-displacement models. KTM’s trajectory directly affects Bajaj’s global footprint.
| Stakeholder | Ownership in KTM |
|---|---|
| Bajaj Auto Int. Holdings | 49.9% |
| Others | 50.1% |
This funding also gives Bajaj stronger footing to shape KTM’s future—on both product and strategic fronts.
Strategy
So, why now?
KTM’s been pushing hard into new platforms—electric mobility, lightweight bikes for Asian markets—but rising costs and supply chain snags have taken a toll. Left unchecked, that momentum could stall.
Bajaj’s move ensures KTM can:
- Keep co-developing innovative models
- Stay active in the Indian market
- Push exports in key emerging economies
This aligns with Bajaj’s broader ambition to be a dominant force in global motorcycling.
Impact
This isn’t just about keeping KTM stable—it’s about protecting Bajaj’s larger vision, especially in joint markets. It also shows Bajaj’s financial strength and its appetite for bold global bets.
An official statement from Bajaj is expected soon, likely detailing the loan structure and anticipated outcomes. But the bigger message is already clear: Bajaj is fully invested in KTM’s future.
This might just mark the beginning of an even tighter partnership—one that could redefine the motorcycle landscape across continents.
FAQs
How much did Bajaj raise for KTM?
Bajaj raised ₹5,431 crore to support KTM’s operations.
Who provided the loan to Bajaj?
JP Morgan Chase, DBS Bank, and Citigroup Global Markets.
Why does KTM need financial support?
To manage liquidity, development, and supply chain issues.
What is Bajaj’s stake in KTM?
Bajaj Auto holds a 49.9% stake in KTM.
Will this affect new motorcycle launches?
Yes, it will help co-develop and launch new models.
