Indian automotive group Bajaj Auto has gained control of KTM, Europe’s biggest producer of motorcycles.
Yesterday evening, Pierer Mobility, the KTM holding company, announced that Bajaj had become its majority owner with an effective stake of 74.9 per cent.
The Indian firm had exercised an option to acquire the stake of former majority owner Stefan Pierer in a jointly-owned holding company which controls almost three quarters of Pierer Mobility capital.
Pierer Mobility is the sole owner of KTM and listed on the Vienna Stock Exchange.
Stefan Pierer, an Austrian industrial giant, took over KTM in 1991 when it faced bankruptcy. He turned the company into a world leader with more than 4,000 employees and a turnover of more than €2.5 billion.
He will reportedly step down as the CEO of Pierer Mobility and KTM. The board members nominated by him will also step down, paving the way for Bajaj operatives.
Bajaj is one of the biggest vehicle manufacturers in India with sales of €5.5 billion in 2025 and a market capitalisation of €24 billion.
It focuses primarily on motorbikes, scooters and auto-rickshaws. Founded by businessman Jamnalal Bajaj in the 1940s, it is still majority-owned by the Bajaj family
Bajaj first became a part-owner in KTM in 2007 and subsequently acquired a total of 49.9 per cent of the joint holding company, Pierer Bajaj.
In late 2024, KTM once more faced crisis and insolvency – primarily as a consequence of Europe’s economic crisis. That has lowered demand for motorcycles and spurred rocketing personnel and energy expenses.
The company had to halt production in mid-December last year, leaving employees fearing for their Christmas salaries.
As part of the restructuring, KTM was mulling shifting a large part of production to China or India.
After lengthy negotiations with creditors, Bajaj stepped up in May 2025 and provided emergency financing of more than €450 million to avert KTM’s bankruptcy.
In the process, Pierer and Bajaj agreed that the Indian firm would get the option to take over Pierer’s 50.1 per cent stake in the holding, thus becoming KTM’s majority owner.
Bajaj has assured stakeholders it will continue production at KTM’s main plant in Mattighofen near Salzburg.
Bajaj manager Rajiv Bajaj said: “KTM will always stay an Austrian company and be leading in the development, racing and production of specialised motorcycles.”
The company has, though, announced plans to try to make KTM more cost-efficient, for example with regard to the sourcing of components. That may bode ill for the many smaller companies in the region supplying parts for production at the plant.
