Bajaj Auto’s European arm has reportedly secured a €566 million (approx. ₹5,445 crore) loan, which is expected to support restructuring efforts related to KTM AG. The loan provides a critical one-year window for financial realignment and strategic planning.
Clarification from Bajaj Auto
Following the reports, Bajaj Auto issued an official statement to the Bombay Stock Exchange, clarifying that its wholly owned subsidiary, Bajaj Auto International Holdings BV, based in the Netherlands, is currently in discussions and assessing several options to participate in KTM AG’s restructuring. The plan, as approved by KTM’s creditors, is still under negotiation, and Bajaj has assured that appropriate disclosures will be made in compliance with regulatory requirements.
KTM’s Financial Challenges and the Path Ahead
KTM AG has been grappling with financial difficulties, culminating in an insolvency filing last year. A restructuring plan was approved in February 2025, requiring KTM to repay 30% of its outstanding debt. To move forward with the agreement, the company must deposit €544 million (roughly ₹5,236 crore) with the insolvency administrator by the deadline of May 23, 2025.
While the loan secured by Bajaj Auto BV is not explicitly linked to KTM in the regulatory filing, it has been sourced from top financial institutions including JP Morgan Chase & Co., Citigroup Inc., and DBS Bank Ltd. Bajaj has described the loan as intended for “investment purposes.”
Production Woes Continue for KTM
Despite resuming operations at its Mattighofen plant in Austria earlier this year, KTM faced another setback. After rolling out just 4,200 units, the company halted production again on April 28 due to persistent supply chain bottlenecks and a shortage of critical components.
As KTM navigates this difficult period, Bajaj’s backing—though not officially confirmed as direct support—could prove to be a pivotal factor in the Austrian manufacturer’s recovery.
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