Bajaj Takes Control of KTM: What It Means for Performance, Adventure, and Electric Motorcycles
Bajaj acquires KTM
Bajaj Auto has announced its plan to acquire a controlling stake in Austrian motorcycle manufacturer KTM AG through an €800 million ($906 million) investment. This move transitions Bajaj from a minority investor—holding a 14.5% stake since 2007—to the majority stakeholder, marking a significant shift in their longstanding partnership.
The acquisition comes at a critical time for KTM, which faced severe financial challenges, leading to court restructuring proceedings in November 2024 due to liquidity issues . Bajaj’s investment aims to stabilize KTM’s finances, with €200 million already infused and an additional €600 million planned to settle creditor claims and restart operations .
Bajaj Auto, India’s fourth-largest motorcycle manufacturer, has been instrumental in KTM’s global expansion, particularly in emerging markets. Their collaboration has led to the production of over one million motorcycles, including popular models like the KTM 390 Duke and RC 390, manufactured at Bajaj’s Chakan plant in India .
What Does This Mean for KTM and Bajaj?
Product Development and Innovation
Bajaj Auto’s manufacturing capabilities, particularly at its Chakan plant in India, have been instrumental in producing KTM’s small and mid-capacity motorcycles, such as the 125, 200, and 390 series. This collaboration has enabled KTM to scale its operations significantly, increasing production from approximately 65,000 units annually to nearly 400,000 units .
The acquisition is expected to deepen this collaboration, leveraging Bajaj’s cost-effective manufacturing processes and KTM’s engineering expertise to develop new models that blend performance with affordability.
Expansion into Electric Motorcycles
Both companies have expressed interest in exploring the electric vehicle (EV) segment. Bajaj’s experience with the Chetak Electric scooter and KTM’s engineering capabilities could lead to the development of premium electric motorcycles. This aligns with their previous agreement to initiate serial production projects for electric two-wheelers in the 3 to 10 kW power range .
KTM’s Dominance in Lightweight ADV Market
KTM holds a significant position in the global adventure motorcycle segment. The KTM 390 Adventure, launched in 2020 and manufactured in India, is a benchmark lightweight ADV with features like switchable ABS, long-travel WP suspension, and ride-by-wire throttle. It competes directly with the BMW G 310 GS and Royal Enfield Himalayan 450.
According to SIAM and global retail data, the KTM 390 Adventure accounted for nearly 20% of KTM’s India sales in 2023 and is one of its top export models under 500cc. Its price-to-performance ratio has made it popular in Southeast Asia, Latin America, and Eastern Europe
With Bajaj controlling KTM, the partnership is now positioned to broaden the adventure and dual-sport segment further. A KTM 250 Adventure, already launched in limited markets, is expected to be refreshed and rolled out in more regions. A sub-200cc adventure bike—designed for fuel efficiency and rugged terrain—is a potential next step, aimed at high-volume, rural markets in India, Africa, and Latin America.
Read More: KTM AG Acquires Controlling Stake in MV Agusta: Explaining the Buyout
There are also rumors of an 890 Adventure R Lite, a stripped-down version of KTM’s larger ADV bikes, tailored for emerging markets. Bajaj’s cost engineering expertise could allow these models to enter markets previously priced out of high-performance dual-sport motorcycles.
The adventure motorcycle segment is projected to grow at a CAGR of 8.5% through 2030, driven by interest in off-road touring and long-distance riding in India, the EU, and the US (Allied Market Research). Bajaj–KTM’s vertically integrated setup allows them to compete on both cost and credibility, unlike standalone OEMs with limited market reach or brand value in off-road performance.
Conclusion
Bajaj Auto’s majority acquisition of KTM brings deep manufacturing, distribution, and cost advantages to a brand known for performance, racing, and engineering excellence. The partnership is positioned to dominate sub-500cc performance and adventure motorcycle markets across developing regions while expanding the premium electric and dual-sport portfolios globally. The outcome will depend on maintaining KTM’s distinct identity while leveraging Bajaj’s infrastructure for scalability and innovation.
