Bajaj comes to KTM’s rescue with major investment, restructuring plan moves forward
While monitoring developments affecting major OEMs, one of the powersports industry’s biggest stories took a dramatic turn. KTM AG, the Austrian motorcycle manufacturer, looks to be on the verge of financial stabilization thanks to a timely infusion of funds by its major shareholder, Bajaj Auto.
According to multiple reports, including coverage by MotoMatters, NDTV Profit, and Crash.net, Bajaj Auto International Holdings BV, a Dutch subsidiary of Indian conglomerate Bajaj Auto, has secured a €566 million loan. This move comes just in time to help KTM meet a critical May 23 deadline to pay creditors €548 million as part of a court-approved restructuring plan.
Resolution near
KTM has been embroiled in a major financial crisis since late 2024, racking up debts exceeding €2 billion and forcing the company to cut jobs, halt production, and delay financial reporting. In February, Austrian courts approved a restructuring plan requiring a 30% payment to creditors—around €600 million—by May 23, 2025.
Bajaj’s loan, backed by JPMorgan Chase, Citigroup, and DBS Bank of Singapore, appears to be the lifeline KTM needs to execute that plan.
A statement released by PIERER Mobility AG on May 20 confirmed that financing commitments are now in place to meet the restructuring quota on time. While Bajaj has not formally confirmed the funds are allocated specifically for KTM, the timing and scale of the loan strongly suggest it.
“Our wholly owned subsidiary… is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG… arrangements in this behalf are being finalised,” Bajaj Auto said in a public disclosure on May 19.
What this means
For powersports dealers, KTM’s solvency is not just an international business story—it directly impacts inventory, support, and brand momentum on showroom floors. KTM had already begun reducing unsold stock and trimmed its workforce by nearly 1,000 employees. If the restructuring completes as expected, KTM will eliminate approximately €1.3 billion in debt, returning it to positive equity and reviving its status as a viable OEM.
Still, there’s a trade-off. The rescue effort could shift the balance of control within KTM’s ownership structure. Bajaj Auto currently owns 49.9% of Pierer Bajaj, which itself holds 74.9% of PIERER Mobility AG, KTM’s parent company. If new shares are issued in exchange for Bajaj’s financial support, the Indian giant could gain a controlling stake in KTM—reshaping the brand’s strategic direction moving forward.
Racing uncertainties
While KTM’s core operations are expected to stabilize, its racing programs—particularly in MotoGP—remain in question. KTM Racing operates separately from the entities involved in the restructuring but relies heavily on funding from its parent companies. With racing such an integral part of KTM’s brand identity and marketing strategy, dealers and fans alike are watching closely.
Bajaj, which leads the world in two- and three-wheeled vehicle production, may be more inclined to continue racing than a purely financial investor might be. Still, no commitment has been made regarding KTM’s long-term participation in premier motorcycle racing.
Bottom line
KTM appears to have narrowly avoided insolvency, and if Bajaj’s loan does indeed go toward the restructuring plan, dealers can expect improved product flow, brand support, and market confidence. However, the potential shift in ownership could change KTM’s product strategy, racing involvement, and long-term direction.
With the May 23 deadline just days away, powersports dealers should prepare for an imminent announcement confirming KTM’s financial reset—and potentially, a new era under deeper Bajaj leadership.
