Pune, 30th November 2024: In light of recent global developments surrounding the financial restructuring of Austria-based Pierer Mobility AG, Bajaj Auto Limited has reassured stakeholders that the KTM business managed from India remains unaffected and continues to operate seamlessly.
Over the past weeks, Pierer Mobility AG, a European leader in premium two-wheeler manufacturing, has announced significant restructuring plans due to liquidity challenges at its wholly-owned subsidiary, KTM AG. On 26th November 2024, KTM AG initiated judicial restructuring proceedings under self-administration to address immediate financial constraints. This process aims to establish a reorganization plan within 90 days, focusing on ensuring the long-term sustainability of the KTM Group and positioning it for future growth.
Bajaj Auto’s involvement in this ecosystem stems from its wholly-owned Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). BAIHBV holds a 49.9% stake in Pierer Bajaj AG (PBAG), Austria, alongside Pierer Industrie AG, which retains majority control. PBAG, in turn, owns nearly 75% of Pierer Mobility AG, the parent company of KTM AG.
In India, Bajaj Auto has been a strategic partner to KTM, co-developing and manufacturing sub-400cc motorcycles for both domestic and select international markets. While global restructuring has affected export volumes to key markets in the US and Europe, the KTM business in India, managed entirely by Bajaj Auto, continues its robust operations.
The KTM and Husqvarna brands are integral to Bajaj Auto’s premium motorcycle portfolio in India. After achieving record-breaking sales volumes for these brands in the last financial year, Bajaj Auto remains committed to their sustained growth. The company is actively collaborating with channel partners to bring world-class sports motorcycling experiences to Indian customers.
Despite challenges faced by its Austrian counterpart, Bajaj Auto assures customers and stakeholders that it remains steadfast in its mission to deliver excellence and innovation in the premium motorcycle segment.
