Bajaj Auto is open to bringing in a strategic partner for its Austrian subsidiary, KTM, to support future growth. This follows a successful restructuring that returned the premium motorcycle brand to profitability in 2025. Investors are tracking how Bajaj’s plan to move more production to India will further impact KTM’s cost structure and profit margins.
Detailed Coverage
Bajaj Auto, which currently holds a 74.9% stake in the Austrian motorcycle maker KTM, has confirmed it is open to onboarding a strategic investor for the brand. Deputy Managing Director Rakesh Sharma clarified that while there is no immediate or active search for a partner, the company would consider an alliance if the vision of an investor aligns with its long-term goals for KTM.
Building on the 2025 Turnaround
The move comes after a period of significant financial stress for the Austrian brand. In early 2025, Bajaj Mobility AG stepped in to rescue KTM from insolvency. Following this intervention, the company underwent a major restructuring to stabilize its operations. By the second half of 2025, the company reported a 60% increase in retail sales compared to the first six months of that year, alongside a successful reduction in inventory levels and net debt. The brand returned to profitability during this period, signaling that the initial recovery efforts are taking hold.
Cost Strategy and Indian Sourcing
A central pillar of the current strategy is the optimization of KTM’s cost structure. Bajaj Auto is integrating KTM’s procurement process into its own established global manufacturing network. A key component of this effort is shifting more sourcing to India, which offers a more competitive cost base. For investors, this move is critical as it aims to improve profit margins by lowering operational expenses. The success of this strategy will depend on the company's ability to maintain premium quality standards while utilizing India's manufacturing efficiency.
Financial Stability and Market Reach
The balance sheet received a boost earlier in 2026 when KTM secured a €550 million unsecured refinancing loan from an international banking consortium. This credit facility is intended to provide the necessary financial flexibility to support ongoing operations and growth initiatives. As of the latest updates, the Bajaj Mobility Group continues to manage KTM, Husqvarna, and GASGAS as its core brands. In 2025, the group achieved total global sales of approximately 2.1 lakh motorcycles, holding a niche but significant position in the global performance and off-road motorcycle sectors.
Management remains committed to keeping KTM an independent operation under CEO Gottfried Neumeister, even as it leverages Bajaj’s manufacturing and sourcing strength. Investors monitoring the situation should track the progress of the India-based sourcing transition and the sustained impact of the refinancing deal on KTM's debt-servicing capability. Future quarters will also provide clarity on whether the growth in retail sales can be maintained in an increasingly competitive global premium motorcycle market.