KTM AG, the Austrian motorcycle manufacturer known for its KTM and Husqvarna brands, has secured a significant investment from India’s Bajaj Auto to address its financial challenges and revitalize its operations.
In November 2024, KTM AG initiated court restructuring proceedings due to severe liquidity issues. The restructuring plan, approved by creditors in February 2025, stipulates that creditors will receive 30% of their claims, amounting to approximately €600 million, by May 23, 2025. Additionally, around €150 million is required to gradually ramp up production at KTM’s main plant in Mattighofen from mid-March, ensuring operations for approximately 2,000 employees until the end of May.
Bajaj Auto, which has been a minority investor in KTM since 2007, plans to take majority control of the company through an €800 million ($906 million) debt package. This move will transition Bajaj from a dormant stakeholder to a strategic lead, aligning governance and injecting fresh capital to restore KTM’s operations.
Despite the financial turmoil, KTM’s racing divisions have continued to perform exceptionally well in 2025, securing victories in events like the Dakar Rally and remaining competitive in AMA Supercross and MotoGP.
The successful implementation of the restructuring plan and Bajaj’s increased involvement are expected to stabilize KTM’s financial situation and support its long-term growth.
