Bajaj Takes out €566 Million Loan and Begins Talks to Save KTM.
The Indian automotive giant Bajaj has taken out a sizable loan, and it doesn’t take a genius to figure out where it could be heading
Earlier this week, Bajaj Auto confirmed that an arm of its business in Europe, Bajaj Auto International Holdings BV (BAIH), was in talks to begin assisting with the restructuring of the struggling KTM brand.
The timing of the announcement coincided with a loan of a reported €566 million (£476 million) being secured by BAIH, and funded by JP Morgan, DBS Bank, and Citigroup. Prompting Bajaj’s comment on the situation was a flurry of news stories from India, all pointing to the loan being a potential KTM care package. While Bajaj and its subsidiary BAIH didn’t directly confirm the news, both made it clear that talks are indeed ongoing.
The statement on the matter read:
"This is with reference to various media reports published in the mainstream media on 18/19 May 2025 and the material price movement on 19 May 2025 in the equity shares of the Company listed on BSE Ltd. and National Stock Exchange of India Ltd. The said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is for the purpose of funding the restructuring of KTM AG.
"In this regard, we would like to clarify that our wholly owned subsidiary, Bajaj Auto International Holdings BV, Netherlands (“Bajaj Auto BV”), is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG, under a plan approved by its creditors. Involvement by Bajaj Auto BV in the restructuring as well as arrangements in this behalf are being finalised and the Company will make necessary disclosures at the appropriate time in accordance with Regulation 30 of the Listing Regulations."
Bajaj has long been regarded as the brightest hope that KTM has of putting an end to its financial struggles, given the brand's strong presence (and sizable capital), and its close links to the Austrian brand and its owner, the Pierer Mobility Group (PMG). Bajaj Auto, via (BAIH), holds a 49.9 per cent stake in Pierer Bajaj AG (PBAG) in Austria, with the remaining controlling stake being held by Pierer Industrie AG. In short, as a part-owner and technical partner to KTM via PMG/PBAG, the success of the group as a whole is in Bajaj's best interest.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
