Bajaj has done wonders with KTM since coming to the financial rescue of the brand last year. The Indian manufacturer implemented new financial strategies, and KTM’s Q1 financial report indicates that Bajaj’s new direction may point to salvation. Now, Bajaj has announced that it is ready to bring in a strategic partner for its Austrian subsidiary.
For context, Bajaj had given KTM a €450 million ($527 million) loan due in 2025, which was essentially used to keep the company alive, begin its restructuring, and finance a court-approved process to get the company back on its feet. Since then, Bajaj took out a loan of approximately €350 million ($410 million) more and became the majority owner of KTM.
Bajaj currently holds 74.9% stake in KTM, and its deputy managing director, Rakesh Sharma, clarified that, although there is no immediate search for a partner, the manufacturer is open to an alliance. Any potential investor will have to align with Bajaj’s long-term goals for KTM, which appear to mean increasing production more in India.
The core of the current strategy is to integrate KTM’s procurement process into Bajaj’s established global manufacturing network, which is a key point for investors as it should improve profit margins and reduce operating expenses. Of course, the only way this strategy will work in the long run is if the production shifts to India maintain the same quality standards we expect from an Austria-produced KTM.
If Bajaj can keep KTM’s quality high after shifting more production to India, getting involved will be no easy task for any business with the capital. But, as it stands, the KTM/Bajaj partnership is an attractive prospect for anyone who has the money to back it as it is already bearing fruit. After a tumultuous 2025, KTM’s numbers have grown across the board, with motorcycle sales up 125% year-on-year and revenue up 70% year-on-year in the first quarter of 2026. Overall, revenues from KTM, Husqvarna, and GASGAS were up by more than 151% in Q1 2026 compared to Q1 2025.
