Bajaj Auto & KTM To Strengthen Their Partnership

Modified On Mar 25, 2019 By Benjamin Noel Gracias for Bajaj Dominar 400 (2016-2018)

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Bajaj Auto is set to swap its stake in KTM India for one in parent company KTM Industries AG

KTM-Bajaj Alliance

  • Bajaj entered into a JV with KTM in 2007 and currently owns around 48 percent stake in KTM AG. 
  • KTM AG is the manufacturing company while KTM Industries AG is the holding company which owns KTM AG, Husqvarna and WP. 
  • Pierer Industries control a majority stake in KTM Industries AG.
  • Bajaj Auto is in talks with Pierer Industries to trade in their shares in KTM AG for an equal value of shares in KTM Industries AG.
  • This move allows Bajaj to have an active role in future KTM product planning and more importantly, have a say in upcoming India-specific KTM products.


The KTM-Bajaj alliance which started in 2007 has been one of the most successful partnerships ever in the Indian motorcycling arena. This partnership had Bajaj manufacturing KTM bikes at low cost for India and in return have, gaining access to KTM technology, which was implied used to make performance bikes like the Pulsar NS200, RS200 and Dominar 400. Now Bajaj is looking to further strengthen its ties with the Austrian bikemaker by trading shares for a more strategic role in the company. 

Also read: KTM 125 Duke: Road Test Review

KTM 125 Duke

Bajaj Auto currently owns around 48 percent shares of KTM AG, the manufacturing company that sits under KTM Industries AG. The holding company KTM Industries AG, besides KTM AG also hold a controlling stake in Husqvarna motorcycles and suspension component maker WP. Now Bajaj Auto is in talks with Pierer Industries which own around 62 percent controlling stake in KTM Industries AG for a more active role in the company. The talks include KTM Industries AG getting Bajaj Auto’s 48 percent shares in KTM AG thus increasing its stake from the current 51.7 percent to 99.7 percent. In return, Bajaj Auto will get shares of equal value in the holding company KTM Industries AG. 

Also read: 2019 Bajaj Dominar 400: First Ride Review

Bajaj new Dominar

This strategic move will allow Bajaj to have a say in not just the India-specific KTM’s (125cc-390cc), like it did with KTM AG, but also the worldwide KTM lineup (790-1290cc models). The move will not just opens doors for larger -capacity KTM bikes in India but will also allows provide Bajaj access to KTM’s big -bike technology. This could prove beneficial if Bajaj plans to make big bikes of its own in India. 

This transaction is currently under discussion and could potentially be finalised by the second quarter of 2019. Here is a press release from the company:

KTM 790 Duke


KTM Industries AG: Pierer Industries and Bajaj in discussions for Bajaj to participate at KTM Industries level

Pierer Industrie AG holds approximately 62% of the shares of KTM Industries AG (the "Company"). The listed company KTM Industries AG holds approximately 51.7% of the shares of KTM AG; Bajaj Auto International Holdings BV (referred to as Bajaj) holds approximately 48% of the shares of KTM AG.

KTM Industries AG was informed by Pierer Industrie AG and Bajaj that they have started discussions on assessing the possibility of transferring Bajai's 48% stake in KTM AG to KTM Industries AG, with the Pierer-Group continuing to retain the controlling majority over KTM Industries AG. Pierer Industrie AG and Bajaj will now evaluate the proposals in detail. The transaction decision is

targeted to be made in the second quarter of 2019.

If Pierer Industrie AG and Bajaj decide to execute the transaction, KTM Industries AG will examine the legal and economic requirements and conditions of a capital increase by contribution in kind from the existing authorized capital of the Company. The authorized capital enables a capital increase of up to 50% of the existing share capital. If the transaction is executed, the Company's stake in KTM AG would increase from current 51.7% to approximately 99.7%.

About KTM Industries-Group

The KTM Industries Group is the biggest European motorcycle producer and focuses on sport motorcycles and electro mobility. With its worldwide renowned· brands KTM, Husqvarna Motorcycles and WP, the group is in its segments among the technological and market leaders. Within the group there is a high degree of technological network, which is, in this form, unique in Europe. Strategic partnerships at an operational level strengthen the competitiveness in our respective markets. All these factors are the basis for the high innovation level of the KTM Industries-Group and ensure a sustainable organic growth. 



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