Pune, India – In a move marking the culmination of a 17-year partnership, Bajaj Auto has acquired a majority and controlling stake in KTM’s parent company, Pierer Mobility AG (now Bajaj Mobility AG), solidifying its position as a key global force in premium motorcycles. This strategic acquisition not only shifts internal ownership but is set to reshape the motorcycle landscape worldwide.
A Look Back: The Bajaj-KTM Partnership and Stake Structure
Bajaj and KTM first joined hands in 2007, at a time when the Austrian brand sought a capital and manufacturing edge for international growth. Bajaj’s investment gave KTM crucial support for producing bikes competitively—especially smaller-displacement models for fast-growing Asian and emerging markets.
Prior to this acquisition, Bajaj Auto indirectly controlled nearly 37.5% of KTM through its 49.9% stake in Pierer Bajaj AG (PBAG), which in turn held roughly 75% of Pierer Mobility AG. With the completion of this deal, Bajaj, via its wholly owned subsidiary (now Bajaj Auto International Holdings AG), has acquired 100% of PBAG, granting it a direct controlling stake of about 74.9% in Pierer Mobility AG and KTM AG.
The transaction, valued at €800 million (approx. ₹7,765 crore), was financed through debt and followed a series of regulatory approvals, including those from the European Commission and Austria’s Takeover Commission. The deal also marks the complete exit of the Pierer Group from PBAG and management changes at various levels of the newly renamed Bajaj Mobility AG and KTM.
Regulatory Landscape and Operational Changes
Achieving controlling ownership required clearances from regulators in both India and Europe, ensuring fair competition. The European Commission gave the final nod in November 2025, with Austrian and Indian agency approvals preceding it. Post-acquisition, supervisory and management boards at PBAG, PMAG, and KTM were reconstituted to reflect Bajaj’s new authority.
Market Impact and Strategic Vision
The expanded stake gives Bajaj much greater influence over KTM’s product development, market strategy, and operations across KTM, Husqvarna, and GasGas brands. As a result, future KTM and Husqvarna models are likely to feature more India-sourced components, promising cost efficiencies and increased competitiveness in price-sensitive markets. Industry analysts expect this will pressure rivals like Honda and Yamaha, especially in Asia, and allow Bajaj to leverage premium tech for its own product lines.
Bajaj has publicly stated its intention to maintain KTM as a product- and R&D-led, independent Austrian company, with synergies expected in sourcing, distribution, and possibly joint electric vehicle projects. Recent statements from both companies confirm that an electric motorcycle collaboration is in progress, with further product announcements expected in the near future.
Challenges and Outlook
Integrating operations and cultures spanning Europe and India poses challenges, as does the need to navigate shifting regulatory and consumer landscapes in both developed and emerging markets. Still, the long-standing collaboration between Bajaj and KTM offers a solid foundation for managing this transition.
Rajiv Bajaj, Managing Director of Bajaj Auto, summed up the move: “Our partnership with KTM has been exceptionally successful. This increased stake reflects our confidence in KTM’s future and our commitment to global leadership in motorcycling.”
Both Bajaj Auto and KTM look poised to not only strengthen their existing segments but also set the stage for significant expansion in electric and premium bikes, reshaping the competitive market for years to come.
