Mumbai: Bajaj Auto is set to become the top stakeholder in Austria’s famous motorcycle brand KTM. This move is being made through Bajaj Auto’s fully owned arm, Bajaj Auto International Holdings BV (BAIHBV). Until now, Bajaj was only a minority stakeholder in KTM. With this change, Bajaj will take full control of the company.
The Indian two-wheeler giant plans to boost its presence in the premium and sports motorcycle market with this deal. The move is expected to help Bajaj grow more in the global motorcycle industry. Bajaj believes that this step will also help KTM come out stronger and compete better.
To make this happen, Bajaj has arranged a large funding of €800 million. This money will be used mainly to clear KTM’s old debts and help run daily operations smoothly. A part of this plan, KTM’s debt restructuring, has already been approved by an Austrian court.
Out of the total €800 million, Bajaj has already given €200 million. The remaining €600 million is now being sent. This funding will support KTM’s recovery and future plans.
This is a major step for Bajaj Auto and shows its aim to grow bigger in the global market. The company now hopes to use KTM’s strong brand name and tech power to reach more customers worldwide.
