KEY HIGHLIGHTS
- KTM has been going through financial struggles for a while.
- The bikemaker had applied for bankruptcy back in November 2024.
- The acquisition of MV Agusta and KTM's huge backlog are among a few reasons for its financial woes.
The Austrian bikemaker KTM is sure finding itself in headlines every now and then. This time, it has plenty to do with Bajaj Auto. If you haven't been living under a rock, you would know that Bajaj Auto co-owns a stake in KTM, along with its parent company, Pierer Mobility, and the former is keen on maintaining this connection, having secured some loans to keep the bikemaker afloat.
However, before we dive into the juicier bits, make sure to join the 91wheels WhatsApp Community to keep up with the latest news and automotive updates.
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Bajaj Auto Raises Rs 5,431 Crore To Support KTM's Restructuring; Details
According to reports, Bajaj's international unit has agreed to an unsecured one-year loan of 566 million Euros, with financial institutions such as JP Morgan Chase & Co, DBS Bank Ltd., and Citigroup Global Markets Asia. Filing reports further say that these fundings will be used Bajaj Auto's investments, which does not specifically name KTM. However, in order to avoid liquidation, the Austrian bikemaker has a deadline of May 23 to pay 548 million Euros to its creditors. This amount is a 70% cut from the original debt amount, which its creditors agreed to in February 2025, as part of the restructuring deal.
The Austrian bikemaker met a strong demand and cranked up production immediately after the COVID-19 pandemic, citing a strong demand for its motorcycles. However, it was soon left with a huge backlog of unsold inventory. In the later half of 2024, KTM had applied for insolvency, and took a break from manufacturing in order to clear off the huge backlog of motorcycles. KTM acquiring a majority stake in MV Agusta in early 2024 is also said to be another factor to have led to the Austrian bikemaker's financial woes.
Ever since KTM found itself in muddy waters, Bajaj Auto has been supporting and helping out the bikemaker financially. This helped the Austrian bikemaker resume production after the initial restructuring deal in February. Things came to a halt yet again in April 2025, as component suppliers were said to be reluctant in committing further, given KTM's financial condition. However, with the new funds, KTM should now be able resume business operations and resolve prodcution/supplier chain issues.
This is also further proof that Bajaj is unwilling to give up on its long-standing partnership Team Orange, which makes sense given how profitable it has been all these years. Whether Bajaj Auto now looks to earn a controlling stake in KTM is something that remains to be seen.
Lastly, those who've been dreaming of a lovechild between BMW Motorrad and KTM can now finally stop (please!). An official statement from Bajaj Auto and KTM is yet to come, but we can expect one sometime soon.
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Verdict
KTM fans will probably breathe a sigh of relief after reading this. This isn't even the first time it has been in trouble. The Austrian bikemaker has found itself in challenging situations every now and then, but it always finds a way to carry on.
