Bajaj Auto currently owns 48 per cent in KTM AG, and manufactures and sells small displacement bikes in India under the Duke and RC range.

Bikes like the KTM 390 Adventure are manufactured in India by Bajaj Auto
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Bikes like the KTM 390 Adventure are manufactured in India by Bajaj Auto

Bajaj Auto has restarted talks to transfer its stake in KTM AG to the Austrian motorcycle brand’s parent firm Pierer Mobility AG. The move is being considered to simplify the shareholding pattern by transferring the stake to a new holding company. Currently, Pierer Mobility AG (PMAG) and Bajaj Auto’s 100 per cent Netherlands subsidiary, Bajaj Auto International Holdings, have 51.7 per cent and 48 per cent stake respectively in KTM AG. Pierer Industrie AG holds over 60 per cent stake in Pierer Mobility AG. As part of the proposed transaction, Pierer Industrie AG and Bajaj will move their stakes in Pierer Mobility to a new company PTW Holding AG.

Also Read: KTM 250 Adventure Launched In India; Priced At ₹ 2.48 Lakh


The KTM Duke and KTM RC range with models ranging from 125 to 390 are made in India at Bajaj Auto’s manufacturing facility

“The proposal envisages Bajaj swapping its 48 per cent stake in KTM AG for a stake in PMAG and both Pierer Industrie and Bajaj moving their stakes in PMAG to a new ‘Holdco’ between them,” Bajaj Auto said in a regulatory filing.

If a decision is taken to execute the transaction, Pierer Mobility AG will consider the legal and economic requirements and conditions of capital increase by contribution in kind from the existing authorised capital of the company. The discussions though are at a very preliminary stage and the disclosure is being made only by way of abundant caution, the company said in the regulatory filing.


Also Read: KTM-Owned GasGas To Make Moto3 Debut In 2021


Through the partnership, Bajaj Auto manufactures and sells KTM bikes in India, and also manufactures small displacement KTM bikes in the Duke and RC range at Bajaj Auto’s manufacturing facility in Chakan, on the outskirts of Pune. In 2007, Bajaj Auto bought a 14.5 per cent stake in KTM AG, and by 2013, Bajaj Auto’s stake increased to 48 per cent. In 2013, KTM acquired Swedish motorcycle brand Husqvarna, and in 2019, KTM acquired Spanish motorcycle brand GasGas.

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