- Bajaj Auto made final $1.14 billion investment
- Production to restart in full swing
- Could introduce new motorcycles at 2025 EICMA
KTM has narrowly avoided collapse thanks to a crucial $1.14 billion financial rescue from its long-term manufacturing partner, Bajaj Auto. This fresh injection follows an earlier $380 million boost from the Indian automotive giant, bringing Bajaj’s total support to $1.52 billion
The funding arrived just in time to meet a critical May 23 deadline, enabling KTM to meet its legal commitments, particularly the agreed 30% payout to creditors. This move has safeguarded KTM’s three subsidiaries from liquidation, allowing them to continue operations and plan for recovery. The financial support is believed to be linked to recent reports that Bajaj’s European investment arm secured $1.08 billion through unsecured loans from major banks, including JPMorgan, DBS, and Citigroup. Although the official purpose of the loan wasn’t disclosed initially, the timing strongly suggests it was part of the effort to stabilise KTM.
“We now have a renewed opportunity to carry forward KTM’s legacy,” said Gottfried Neumeister, CEO of KTM AG. “With the backing of our long-time partner Bajaj, we’ve developed a plan to raise the additional €NZ$1.14 billion needed to restart. Our existing facilities, especially the headquarters in Mattighofen and Munderfing, will remain central to our future. This not only preserves our operations but also secures jobs across the region.”
Neumeister expressed heartfelt appreciation to all involved in facilitating the deal, also acknowledging former CEO Stefan Pierer for his foundational role in building KTM into a globally recognised motorcycle brand. This bailout is part of a larger debt restructuring plan aimed at writing off 70% of KTM’s $4.18 billion debt. It follows a 90-day self-administration period that began on November 29. The next step involves officially transferring the $1.14 billion to the court-appointed administrator, with Austrian courts expected to approve the restructuring plan in early June.
Bajaj, which holds a 49.9% stake in KTM, had already made a significant move in March by injecting NZ$380 millionto help restart production lines. Despite these lifelines, the company has faced a difficult period: over 1,850 employees have lost their jobs, and financial reports show Pierer Mobility ended 2024 with $2.43 billion in operating losses, alongside a 30% drop in revenue.
KTM also saw a sharp decline in sales—over 60,000 fewer motorcycles were sold last year, forcing a reduction in inventory and prompting the company to exit the bicycle market. Several anticipated product launches, including the 1390 Super Duke GT, 990 RCR, and new Super Adventure models, remain delayed despite their initial unveiling in late 2023.
However, with things looking good for KTM, we can expect the delays to smooth out and the brand to introduce new motorcycles by the end of the year.
(all currency figures in NZD)
