Bajaj Auto Targets KTM Revival via India Production

Bajaj Auto is on the verge of a significant strategic change as the company plans to acquire a majority stake in Austrian motorcycle maker, KTM AG - a decision that is set to redefine the world of premium bikes. The automaker based in Pune will spearhead an entire turnaround that aims at cost cutting, financial stability as well as restructuring of operations.

Bajaj Auto Executive Director Rakesh Sharma confirmed during the company’s Q2 earnings call that eight of the nine required European regulatory approvals have been secured, with the final one expected by mid-November. “We have made an application for taking majority control over KTM AG… The ninth one should also be through, hopefully by mid-November, which is when the turnaround can start, to be very actively led and directed by us,” Sharma said.

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As part of the cost-optimization strategy, Bajaj is exploring increased manufacturing in India, leveraging its proven efficiency in producing lower engine capacity KTM models. “We will look at all options for reduction of cost, provided that quality is not compromised... That is a very, very important piece of the turnaround,” Sharma added. While moving production to India is “very much on the table,” he clarified that high-end KTM models may continue production in Europe due to supply chain constraints.

On potential restructuring, Sharma stated, “Yes, plans are being developed, but we will get into the driver's seat only at the end of this month.”

The €800 million acquisition, routed through Bajaj Auto International Holdings BV, marks a turning point in Bajaj’s long-standing partnership with KTM that began in 2007. The company aims to revitalize KTM through financial liquidity, leadership overhaul, and targeted cost efficiencies — signaling a bold new phase in its global two-wheeler expansion strategy.