It really feels like KTM just can’t catch a break. Just when it looked like the Austrian motorcycle maker had weathered the worst of its financial woes, it’s back in the headlines—and not in the way fans would hope.
After filing for insolvency late last year and insisting it had everything under control, KTM seemed to bounce back, thanks to a court-approved restructuring plan and a short-lived return to production. But now, with another production halt and a massive cash deadline just around the corner, the whole house of orange cards seems like it could come crashing down—again.
Let’s rewind a bit. KTM AG initiated insolvency proceedings in November 2024, citing a cocktail of pandemic-era demand swings, sky-high costs, and mountains of unsold motorcycles—around 265,000 of them, many not compliant with Euro5+ emissions rules. By February 2025, it had secured a lifeline of sorts: a deal with creditors to pay just 30 percent of its roughly 2.2 billion-euro debt. In exchange, the brand had to cough up 600 million euros by May 23.
Easy enough, right? Apparently not.
KTM did restart production for a short stint in April, thanks in part to a 200 million-euro cash injection from its longtime Indian partner Bajaj Auto. But that didn’t last. The factory shut down again by the end of April due to supply issues, and with the clock ticking toward that 600 million-euro due date, things were starting to look grim.
This is where Rajiv Bajaj enters the picture once more.
Last week, Bajaj Auto, through its European arm, announced it had taken out an unsecured loan of 566 million euros (that’s about $632 million) from JPMorgan, DBS, and Citigroup. On paper, the loan is described as being for “investments,” with no mention of KTM anywhere in the exchange filing.
But let’s be real: given the timing, the amount, and the context, it doesn’t take a forensic expert to figure out where this money is probably headed.
For some added background, Bajaj Auto has been intertwined with KTM for nearly two decades. It first bought a 14.5-percent stake in 2007 and gradually increased its involvement over the years. By 2021, Bajaj had exchanged its KTM AG shares for a nearly 50-percent stake in PTW Holding AG, which controls KTM, Husqvarna, and GasGas via Pierer Mobility AG. While the ownership trail has become a bit of a maze, the point is clear: Bajaj has a massive interest in keeping KTM alive.
So while Bajaj hasn’t come right out and said, “Yes, this loan is for KTM,” all signs point in that direction. This is especially true when you factor in that 600 million-euro deadline, plus another 150 million euros reportedly needed just to keep operations afloat. With Bajaj already having contributed 200 million euros, this latest loan could be the final push to meet KTM’s obligations and maybe, just maybe, keep the company from flatlining.
But here’s the twist: there’s talk that this financial move could eventually make Bajaj KTM’s majority shareholder. As it stands, Bajaj already owns nearly half of KTM AG via Pierer Bajaj AG. And with its growing financial influence, it wouldn’t be surprising to see a shift in control if KTM doesn’t pull itself together soon.
Meanwhile, KTM’s restructuring administrator and Pierer Mobility AG are still trying to raise additional capital, with Citigroup Global Markets Europe AG reportedly hunting down 800 million euros in new investment. And yes, the rumor mill is buzzing with whispers that BMW might be interested, though nothing official has surfaced.
At the end of the day, KTM’s future hinges on whether this infusion of cash from Bajaj can actually stabilize the brand—or if it’s just a temporary patch on a sinking ship. Rajiv Bajaj himself put it best in a recent interview: “This is not something we would like to let go of easily… but we need to find a very sustainable solution for the future.”
Is this the last straw for KTM? Or could this be the break it so desperately needs to finally turn things around?
Perhaps we’ll find out soon enough.
Source: The Economic Times
