Not Actively Looking, But Open to Partnership for KTM: Bajaj Auto

Bajaj Auto would consider bringing in a strategic partner for its Austrian motorcycle brand KTM if one with an aligned vision emerges, but is not actively looking for one, Joint Managing Director Rakesh Sharma said, indicating that the company remains focused on stabilising and independently running the business under its new management.

Bajaj took control of KTM last year after backing the Austrian company through a restructuring process with an 800 million euro support package. Earlier this year, KTM refinanced its debt through a 550 million euro loan from an international banking consortium and repaid the earlier 450 million euro loan extended by Bajaj Auto International Holdings BV, marking the completion of its refinancing exercise.

Responding to a question on whether Bajaj was open to inducting a financial or strategic investor into KTM, Sharma said the immediate priority is to ensure the company runs independently by its management team while Bajaj continued to support its turnaround.

"First of all, our approach is that KTM has to be run independently by the new management. We have facilitated, we have injected liquidity, we have facilitated the change of installation of new leadership over there. And we are facilitating improvement in cost structures through expansion of sourcing from more competitive places, most notably in India. After that, it has to be run," Sharma told reporters on Tuesday.

His comments indicate Bajaj sees its role as providing financial backing and operational support while allowing KTM's management to execute the turnaround. Sharma, however, did not rule out the possibility of bringing in strategic investor at a later stage if it strengthens KTM's long-term prospects.

"Now, in the future, if there is a strategic partner whose vision and strategies align with KTM, that is a question to be considered. That opportunity is always open. But it is not as if there is a hunt on for somebody to come in and participate in KTM," he said.

The remarks indicate that Bajaj Auto remains open to evaluating partnership opportunities if they complement KTM's strategy, while making clear that no process is currently underway to identify or induct a new partner.

KTM has been undergoing a broad restructuring after facing liquidity stress, with Bajaj emerging as the strategic owner and key financial backer. The refinancing completed earlier this year reduced KTM's dependence on intra-group funding and marked another step in its turnaround.

Bajaj Auto's partnership with KTM began in 2007 through a strategic alliance to jointly develop and sell premium motorcycles globally. In November 2025, after KTM entered restructuring due to a liquidity crisis, Bajaj acquired full control by increasing its stake in holding company BAIH AG from 49.9% to 100%, making KTM its step-down subsidiary.

Sharma said KTM AG's turnaround was progressing as planned and that the Austrian motorcycle maker had returned to EBITDA breakeven in the April-June quarter after several loss-making quarters. He said the milestone followed Bajaj's liquidity support and management changes, adding that the company would continue to improve both its revenue and profitability in the coming quarters.