Bajaj Auto takes majority ownership of KTM

Indian auto giant Bajaj Auto has finalised its call-option agreement to take sole control of Pierer Bajaj AG, giving it majority ownership of Austrian motorcycle manufacturer KTM.

• Bajaj Auto International Holdings B.V. acquires full control of Pierer Bajaj AG
• Pierer Bajaj AG is the grandparent company of KTM
• Bajaj helped rescue KTM from insolvency earlier in 2025

After entering a call-option agreement with Pierer Industrie AG on May 22, 2025, Bajaj Auto has now gained full control of Pierer Bajaj AG via its Dutch subsidiary, Bajaj Auto International Holdings B.V.

Pierer Bajaj AG is a majority shareholder of Pierer Mobility AG, the parent company of famed Austrian motorcycle manufacturer KTM.

Bajaj previously owned a 49.9% stake in Pierer Bajaj AG, with Pierer Industrie AG holding the remaining 51.1%. Bajaj exercised its call option following KTM’s insolvency proceedings earlier this year, giving it the right to acquire Pierer Industrie’s shares in Pierer Bajaj AG.

KTM had entered severe financial distress post-COVID and filed for a legal restructuring under self-administration in November 2024. The company was forced to reduce its workforce and halt production while the process unfolded.

The restructuring plan was ultimately approved by the company’s creditors, with Bajaj securing an estimated EUR 800 million to cover the required 30% debt repayment.

With majority control of KTM, Bajaj Auto is now in a position to shape the company’s strategic future. The Indian manufacturer already builds several KTM models at its Chakan plant, and it remains unclear whether that role will expand under the new ownership. While Bajaj is expected to maintain KTM’s Austrian presence, rumours suggest significant budget cuts could be on the horizon — including the potential end or sale of KTM’s MotoGP programme. For now, though, it’s business as usual, with KTM having resumed production in July.