If you’re in the US, you probably haven’t heard much about Bajaj Auto. But in Asia, and especially in India, it’s a heavyweight. This is a company that sells millions of motorcycles and three-wheelers a year, dominates export charts, and builds bikes for everyone from commuters to thrill-seekers.
And now? It’s making headlines again, this time for blowing past its profit forecasts.
Bajaj Auto reported a profit of 20.49 billion rupees (about $240 million), beating analyst expectations pegged at 19.95 billion rupees. That’s no small feat, especially considering the domestic market in India has been a bit soft lately. But Bajaj pulled ahead anyway, thanks to strong overseas demand for its motorcycles and favorable foreign exchange gains. To put it simply, Bajaj is firing on all cylinders globally, even if home sales aren’t red-hot at the moment.
The strong financials reinforce something long-time observers already know: Bajaj knows how to play the long game. It’s lean, export-savvy, and deeply embedded in the global two-wheeler supply chain. And while rivals are still scrambling to balance volumes and margins, Bajaj is stacking cash and making bold moves. One of those moves? Doubling down on KTM.
Now, KTM’s been in a bit of a pickle lately. The Austrian brand, which has become known for its sharp-handling street bikes and dirt-shredding enduros, hasn’t exactly had the smoothest ride. Parent company Pierer Mobility’s financials were under pressure, and the situation was starting to look a little shaky, to say the least. That is, until Bajaj came riding in.
Just a week or so ago, Bajaj announced it was stepping up to take a majority stake in KTM, backed by an €800 million (about $906 million) debt package. That’s a massive show of confidence, and a timely one at that. Bajaj and KTM have been partners for years, with many of KTM’s small and mid-displacement bikes built in India under their joint venture.
But this move gives Bajaj real control, not just over production, but over strategy, direction, and what comes next.
And what could come next? Well, for starters, stability. With Bajaj at the helm, KTM gains access to deep pockets, a cost-efficient production base, and a partner that clearly believes in the brand’s potential. It also opens the door to long-delayed product launches finally seeing the light of day. Think the e-Duke, or the Husqvarna e-Pilen—both EVs that have been floating around as prototypes for years.
Even without diving deep into electrification, KTM stands to benefit big from Bajaj’s current momentum. Lower production costs, improved logistics, and access to high-growth markets like Southeast Asia and Latin America could help KTM weather the uncertainty in Europe and the US. Bajaj, in return, gets to strengthen its global footprint while adding some serious performance pedigree to its portfolio.
So yeah, Bajaj is booming. And if all goes according to plan, KTM could be in for one heck of a comeback. From financial lifeline to strategic springboard, it’s more than likely that we’ll be seeing some big things from Bajaj and KTM in the very near future.
Sources: Bajaj Auto, Reuters, The Financial Express
