Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Bajaj Auto Ltd., India’s leading two and three-wheeler manufacturer, has officially completed the €800 million acquisition of a sole controlling stake in Austrian performance motorcycle major KTM AG, following the final clearance from European regulatory entities.
The transaction, finalized on November 18, 2025, sees Bajaj transition from a long-time minority partner to the undisputed majority owner of the KTM Group. Through its wholly-owned subsidiary, Bajaj now holds an effective 74.9% controlling interest in PIERER Mobility AG (KTM’s parent company), granting it full authority over the KTM, Husqvarna, and GasGas brands globally. The deal wraps up a process that began in May, solidifying Indian control over one of Europe’s most iconic performance motorcycle empires.
The acquisition resulted in a major corporate overhaul, signaling the immediate shift in governance. The former holding company, Pierer Mobility AG (PMAG), which is listed on the Zurich and Vienna stock exchanges, has been renamed Bajaj Mobility AG. Simultaneously, the supervisory boards of the entities, including KTM AG, have been reconstituted to reflect Bajaj’s new role as the sole controlling shareholder, marking the formal exit of the Pierer Group from the controlling structure.
Focus Shifts to Cost-Cutting and ProductionThe strategic intent behind the high-stakes transaction quickly became clear, with Bajaj Auto Managing Director Rajiv Bajaj indicating that the takeover will trigger major restructuring. Mr. Bajaj has previously suggested that the European manufacturing setup of the Austrian firm is facing profitability challenges, publicly stating his intent to cut overhead costs by more than 50%.
The move is expected to accelerate the shifting of more production for the European brands to Bajaj’s highly efficient manufacturing base in India, where smaller-capacity KTM models like the 125cc and 390cc Dukes are already built for global export. This consolidation positions Bajaj not only as a global mobility powerhouse but also as the primary manufacturing hub for a significant share of the world’s performance motorcycles.
The acquisition culminates a 17-year partnership that began in 2007, a collaboration that was instrumental in scaling KTM’s production while introducing high-performance motorcycling to the Indian market. The full takeover now cements Bajaj’s lead role in defining the future product pipeline and global market strategy for the entire KTM Group.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
