Bajaj Auto Open To Strategic Investor For KTM, Focus On Turnaround

Bajaj Auto said it was open to inducting a strategic investor into KTM to secure long-term growth, but that its immediate priority remained executing the turnaround after last year's rescue, deputy managing director Rakesh Sharma said during a post-earnings interaction. He added that the option of a partner with aligned vision was available but that there was no active hunt for investors.

Earlier this year Bajaj Auto took control of KTM after rescuing the Austrian maker from insolvency through European subsidiary Bajaj Mobility AG, gaining strategic control of KTM and premium brands Husqvarna and GASGAS while leaving day-to-day operations with chief executive Gottfried Neumeister. The company said KTM will be run independently by its new management.

Bajaj injected liquidity, appointed new leadership and sought to improve the cost structure by expanding sourcing from more competitive locations in India, with several KTM and Husqvarna models made at its Chakan facility for domestic and export markets. Procurement is being integrated with Bajaj's global manufacturing ecosystem.

Bajaj Mobility AG reported that restructuring stabilised operations in the second half of 2025, with retail sales rising around 60 per cent versus the first half, reduced inventory, lower net debt and a return to profitability, underpinning a foundation for profitable growth. The recovery continued into 2026 and the group secured a €550 million (mn) unsecured refinancing loan from an international banking consortium, which strengthened KTM's balance sheet and added financial flexibility. The refinancing was described as reflecting lenders' confidence in the turnaround.

The group sharpened its focus on KTM, Husqvarna and GASGAS and integrated procurement with Bajaj's wider manufacturing base. In 2025 the Bajaj Mobility Group sold about 0.21 mn motorcycles globally, with KTM accounting for about 82 per cent of volumes, Husqvarna 12 per cent and GASGAS 4 per cent, leaving the group with an estimated 3.9 per cent share of the global motorcycle market by volume.

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