Bajaj receives nod to take over KTM — game-changer in global bike industry

In a landmark development for the two-wheeler world, Bajaj Auto Ltd. has obtained regulatory approval to assume control of the Austrian premium-bike maker KTM AG. After years of partnership and joint product development in India, the deal marks a major shift — bringing KTM’s future firmly into Bajaj’s hands. With KTM’s global reach and Bajaj’s manufacturing acumen, this move could re-write the rules of premium motorcycle production and export.

What’s happening

The Austrian Takeover Commission has formally granted Bajaj the “restructuring privilege” that allows its wholly-owned Netherlands-based unit to acquire control over KTM’s parent company Pierer Mobility AG without triggering a full public takeover bid. Earlier in May 2025, Bajaj had entered into a call-option deal to take a controlling stake in Pierer-Bajaj AG, the holding vehicle of KTM, and committed to an €800 million (approx ₹7,800 crore) debt-injection package to stabilise KTM’s operations.

Why it matters

For Bajaj — long one of India’s largest two-wheeler makers — the move marks a pivot from mostly domestic and emerging-market volumes to a strategic leadership role in the premium global motorcycle segment. For KTM, which had entered restructuring and liquidity stress, Bajaj brings capital, scale and access to India’s low-cost yet highly skilled manufacturing ecosystem. The brand synergy gives Bajaj an expanded global footprint, functional technology sharing and potential production arbitrage.

Strategic implications

• Manufacturing and export leverage: With KTM’s global network and Bajaj’s India-based manufacturing, the combined entity gains cost advantages and scale for premium models.
• Product development acceleration: Shared engineering and platforms may fast-track KTM’s next-gen models, while Bajaj gains premium DNA for aspirational consumer segments.
• Market access and brand enhancement: Bajaj expands its global footprint; KTM solidifies its India base and obtains deeper investment backing.
• Competitive repositioning: This deal escalates competition for other global players in mid- and large-capacity motorcycles, especially in Asia-Pacific and emerging markets.

What remains to be seen

The deal still awaits further regulatory approvals (for example in Europe) and the full new ownership structure will take time to crystallise. Managing brand identity (KTM’s “ready to race” ethos vs Bajaj’s mass-market roots) will be a balancing act. Execution will determine whether this acquisition yields market share and margin gains — or ends up being a costly distraction.

Conclusion

With regulatory green-lights secured, Bajaj’s takeover of KTM signals a watershed moment in the global two-wheeler space. It positions Bajaj not just as a volume champion in India but as a serious global premium player, while giving KTM the investment and scale to fight its way back. For riders, dealers and the industry alike, the message is clear: the premium bike space is shifting, and India-based Bajaj is steering the change.