KTM Sells Out to India: 5 Fast Facts You Need to Know

Photo credit: KTM

It's official: India's Bajaj Auto has officially agreed to provide the necessary funds to keep KTM and its affiliated brands Husqvarna and GAS GAS afloat for the foreseeable future. In doing so, Bajaj has acquired a majority ownership stake in the Austrian brand.

Specifics on KTM's future strategy and identity are still developing, but here are the most important facts you need to know about what's changing and what's staying the same. 

KTMs Will Still Be Built In Austria

Photo credit: KTM

While it's true that Bajaj Auto will effectively be "calling the shots" for KTM and its sister brands, the India-based company isn't looking to mess with success. KTM will continue to manufacture from its Mattighofen/Munderfing-based plants in Austria. 

That means KTM's highest-performing flagship models will continue to be made in Austria rather than India or China for the foreseeable future. That could change down the line, but for now, KTM has confirmed the plants will remain operational. 

The Executive Board Gets a Shakeup

Photo credit: KTM

KTM confirmed in a press release last week that Stefan Pierer, namesake of KTM's parent company Pierer Mobility, will be stepping down from the executive board effective June 25. Verena Schneglberger-Grossmann will fill the position. 

Schneglberger-Grossmann has been with Pierer Mobility since November of 2015, and will take on the role of Chief Legal Officer. CEO Gottfried Neumeister is expected to remain in place until the end of May next year. 

Bajaj Was Already KTM's Largest Financial Backer

Photo credit: KTM

KTM's new ownership shouldn't be seen as some aggressive corporate takeover or major shakeup. Bajaj Auto was already a major player at KTM, holding a 49.9% stake in Pierer Mobility prior to the deal. 

Exact amounts haven't been disclosed, but this deal allows Bajaj to take control of at least 50.1% of the company in exchange for its investment. We expect to see a much larger influence over the board once regulatory approvals are obtained.  

India-Based Production and Distribution Will Increase 

Photo credit: KTM

Bajaj stated they're looking to expand their existing joint operation with KTM in an effort to steer the brand toward financial viability. That makes sense, considering how well the smaller-displacement motorcycles built in India sell domestically and abroad. 

Current models built in and distributed from India facilities include the 390 Adventure, 390 Duke, and RC 390, as well as sub-300cc street models like the 125 Duke and 250 Adventure. We expect to see more volume and potentially more models added to the list. 

Liquidation is Officially Off the Table

Photo credit: KTM

One of the largest issues with KTM's financial predicament was that its creditors were demanding to be compensated for their investment. Prior to this deal, that meant KTM could have been forced to close up shop and liquidate its assets. 

With this new cash injection, however, KTM has been able to secure enough capital to negotiate a 30% payout to its creditors. This secures the brand's future existence, and it's now up to Bajaj to lay out a path toward profitability. 

→Read More:
Tariff Relief: These Kawasaki Motorcycles Are Getting a Price Cut
Latest on the Harley Davidson Leadership Shake up
This New Harley Davidson Motorcycle is on Stunt Duty in this recent Marvel Film