KTM Is Very Important For Bajaj Auto, Says Rajiv Bajaj

Bajaj Auto is looking to find a solution, and a sustainable one at that, to help its partner KTM shake off its financial troubles. Rajiv Bajaj, Manging Director of Bajaj Auto has said that Bajaj Auto’s stake in KTM could go up, as it looks at several options to resolve the financial crisis that KTM is in the middle of. In an interview, Rajiv Bajaj revealed that he and his team have been “pre-occupied” for the last five or six months to find “a sustainable solution” for KTM. The Austrian motorcycle brand has time till May 23 to find a financial solution after which it faces possible bankruptcy.

Also Read: KTM Pauses Production In Austria

“We hope we will have a good solution, because KTM is a fantastic brand. We’ve been associated with it for 17 years. Over that period of time it has become the world’s number one premium motorcycle brand, overtaking Harley. It’s very strong in its space of off-road, especially off-road racing, just world champion forever.

“For us, for Bajaj, it’s a large part of our business. In revenue terms, it’s very profitable for us. So, this is not something we would like to let go off easily. But from the current position, which is extremely difficult, we need to find a sustainable solution for the future. It’s not just a question of cut-paste in the short term. We have to find something which is sustainable in the future. We are working on it. I think we’re close but in these things there are so many slips between the cup and lip. So, it will only be closer to May 23, that hopefully everything will be resolved and then we’ll be very happy and relieved to have a great solution for it.

Speaking about Bajaj Auto increasing its investment in KTM to help the Austrian brand shake off its financial woes, Rajiv Bajaj indicated that Bajaj Auto may increase its current stake in KTM’s parent company.

Also Read: Bajaj Auto Approves 150 Million Euro Funding For KTM

“We’re almost a 40 per cent shareholder (in KTM), and that may go up now,” said Rajiv Bajaj.

“We’ve already had to inject some capital into the company to get it re-started and to just meet its monthly operating expense kind of thing. Yes, we’ll have to re-capitalise the company, if we’re successful in taking it beyond May 23. Whether we do it ourselves, or we do it with a strategic investor, i.e. an industrial partner, or we do it with a financial partner or debt fund, etc., these are all the options that are on the table. So, we have to find the most optimal way forward,” added Rajiv Bajaj.

Also Read: Bajaj Auto Swaps Stake In KTM, Gets Share In Pierer Mobility

Also Read: KTM Faces Financial Trouble

Last year, KTM went through a financial crisis and halted production at its plant in Mattighofen, Austria. A restructuring plan is already in place to revive the brand, but production was again paused last month due to a shortage of parts, crucial to production of certain models. In India though, KTM continues to roll out single-cylinder models, with the 2025 KTM 390 Adventure and the KTM 390 Enduro R having been already launched over the past few months. The next new KTM which is expected to be launched in India will likely be the KTM 390 SMC later this year. All these models are manufactured by Bajaj Auto in India.

(Source)