Bajaj Auto Gets Austrian Nod to Restructure KTM AG Partnership

Bajaj Auto Ltd. has sought and obtained the approval of the Austrian Takeover Commission to briefly take over KTM AG's parent firm for restructuring goals. This move is a major milestone in the long association of Bajaj with the Austrian motorcycle company. In the early part of this year, Bajaj provided financial aid to KTM, which was struggling with increasing debt and liquidity stress. With this regulatory approval, Bajaj will be able to direct KTM's financial turnaround without having to announce a compulsory public takeover bid.

Austrian Takeover Commission Grants Restructuring Privilege

The Austrian Takeover Commission allowed Bajaj Auto’s Dutch unit, BAIHBV, to take control of KTM’s parent company, Pierer Mobility AG. As per Austrian law, any firm that acquires majority control must make a public offer to every shareholder. But Bajaj's action has been deemed a "restructuring privilege," implying it is merely for the purpose of stabilising the financial health of KTM. As such, Bajaj has been exempted from making a public takeover offer.
Bajaj is already a 49.9 percent owner of Pierer Bajaj AG, the holding company that owns Pierer Mobility AG. Pierer Industrie AG owns the rest, 50.1 percent. Having secured this approval, Bajaj now intends to buy out Pierer Industrie's entire share, thereby gaining complete ownership of the holding company. This move enables Bajaj to reinforce its strategic standing and protect its long-term investment while steering KTM's operational and financial turnaround.

Financial Assistance and Restructuring Background

KTM has been grappling with severe financial issues in the last one year. The company was dealing with increasing debt obligations, which compelled Bajaj Auto to step in with a timely financial lifeline. Earlier in 2025, Bajaj provided an unsecured loan of approximately Rs. 5,445 crore to enable KTM to settle creditors and regain stability in its finances. This infusion provided KTM with much-needed breathing room to chart a staged recovery.
In June 2025, Austrian courts gave their nod to KTM's formal restructuring plan, clearing the way for the same to be initiated. The recent clearance by the Austrian Takeover Commission was the last step in making the plan valid. Bajaj has also obtained all requisite merger and foreign investment permissions from Austrian and other authorities. The restructuring process will now concentrate on relieving KTM of debt, optimizing its operations, and enhancing its long-term business viability.

Transparency Provisions and Shareholder Protections

The Austrian Takeover Commission has implemented certain reporting requirements to secure transparency during the restructuring.

• Bajaj Auto has to formally declare the change in control at Pierer Mobility AG.
• The company is obligated to disclose every related party transaction between Bajaj-associated parties and Pierer Industrie.
• These reports have to be ongoing until December 2026 to ensure accountability and protect minority shareholders.
• These conditions ensure that while Bajaj assumes operational control, all actions taken remain transparent and compliant with Austrian corporate governance norms. The regulator’s oversight will also help maintain fairness in financial dealings during the ongoing restructuring.

Strengthening of Bajaj-KTM Partnership

This expansion further anchors Bajaj's presence in the global two-wheeler market and strengthens its alliance with KTM. Bajaj already produces all sub-400 cc KTM models in its Chakan plant in India, catering to markets in Asia, Europe, and other geographies. With increased control, Bajaj can consolidate manufacturing strategies, optimize supply chains, and coordinate product planning across both brands more effectively.
The 2007 alliance between Bajaj and KTM has already produced some hit motorcycles in markets around the world. With Bajaj taking the lead in reorganization, KTM's product development and financial health may get new force. The approval reflects Austria’s confidence in Bajaj’s capability to revive KTM while ensuring innovation and competitiveness in the global market.
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