Bajaj Auto Aims to Resume KTM Exports from India in the Coming Months

Bajaj Auto plans to resume exports of KTM motorcycles from India in the coming months, according to a company executive. The Indian manufacturer is one of the country's leading producers of motorcycles and three-wheeled vehicles. In 2017/18, Bajaj Auto sold 3.4 million units, with India accounting for 63.8% of its net sales. The company has four production sites in India and is looking to revive its exports to meet growing demand.

Bajaj Auto Limited, one of India's leading motorcycle manufacturers, has announced plans to resume exports of KTM motorcycles from India in the coming months. The company's subsidiary, Bajaj Auto International Holdings BV (BAIHBV), has been instrumental in securing the necessary funding and governance changes to facilitate the revival of KTM AG, the parent company of KTM, Husqvarna, and GASGAS brands.

In a move aimed at strengthening its global presence, Bajaj Auto has committed EUR 800 million to support KTM's debt restructuring and operational continuity. This includes a secured term loan of EUR 450 million to KTM AG and convertible bonds worth EUR 150 million issued by Pierer Bajaj AG, subscribed by BAIHBV. So far, EUR 200 million has already been infused into the company, with the remaining EUR 600 million being disbursed now [1].

KTM has been undergoing a restructuring process since November 2024 due to liquidity constraints. The restructuring plan, approved by creditors on February 25, 2025, entails a one-time payment of 30% of their claims by May 23, 2025. Bajaj Auto's funding is expected to save KTM from insolvency and restart operations [2].

Post-acquisition, Bajaj Auto plans to improve KTM's governance and initiate a turnaround program. The company also intends to look for partnerships as part of its global growth strategy. This move marks a significant shift for Bajaj Auto from being a minority investor in KTM since 2007 to emerging as its majority stakeholder [3].

Bajaj Auto's production of motorcycles and related components is expected to resume following the formal conclusion of restructuring proceedings and regulatory clearance. The company aims to expand its collaboration with KTM, align governance and financial strategies at the global level, and identify synergies across product development and distribution [1].

References:
[1] https://bestmediainfo.com/mediainfo/mediainfo-marketing/bajaj-auto-moves-to-gain-control-of-ktm-amid-restructuring-efforts-9177335
[2] https://www.newindianexpress.com/business/2025/May/22/bajaj-auto-to-acquire-majority-stake-in-ktm
[3] https://www.newsbytesapp.com/news/business/india-s-bajaj-auto-to-acquire-controlling-stake-in-ktm/story