Bajaj to Acquire KTM
Stefan Pierer completely exiting KTM’s leadership in June
Bajaj Auto is acquiring Pierer Industries’ stake in the parent company of KTM, Husqvarna, and Gas Gas, in a deal estimated to be worth €800 million (US$901.8 million) and is expected to be completed by May 2026 (pending regulatory approval, of course).
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The Indian company already owns a 49.9% stake in Pierer Mobility, the parent company of the three motorcycle brands. The remaining 50.1% is owned by Pierer Industrie AG, but today, Pierer Industrie and Bajaj reached an agreement to transfer it all to Bajaj.
The news comes just as Pierer Mobility confirms it received a €450 million (US$507.4 million) loan, plus an additional €150 million (US$169.1 million) bond from Bajaj. The total sum of €600 million (US$676.5 million) will be used to pay the 30% cash quota owed to KTM’s creditors agreed to under its restructuring plan. This is all on top of another €200 million (US$225.6 million) that Bajaj has provided to restart production.
Additionally, Stefan Pierer will step down from the executive board of Pierer Mobility in June, once the restructuring process is completed. The former chief executive officer stepped down from KTM in March, but continued to own Pierer Industries and was on the board of Pierer Mobility. Once he resigns from the board and Bajaj secures Pierer Industries’ shares, Stefan Pierer will be fully separated from the KTM, Husqvarna and Gas Gas.
In the meantime, Verena Schneglberger-Grossmann has been appointed to Pierer Mobility’s executive board as Chief Legal Officer, in support of the current CEO, Gottfried Neumeister.
What this means for the future of KTM and its sister brands remains to be determined. Bajaj currently produces the group’s sub-400cc models such as the KTM 390 Adventure and Husqvarna’s Vitpilen and Svartpilen 401, and it’s possible the brands will shift more focus on this segment and away from larger, more expensive bikes like the 1390 Super Duke. We also don’t know what will happen with KTM’s joint venture CFMOTO, which produces motorcycles in the 790 to 950cc range. For the last few years, KTM had been the European distributor for CFMOTO’s motorcycles in Europe, but in April, KTM announced that distribution arrangement was ending June 1.
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Dennis has been a part of the Motorcycle.com team since 2008, and through his tenure, has developed a firm grasp of industry trends, and a solid sense of what's to come. A bloodhound when it comes to tracking information on new motorcycles, if there's a new model on the horizon, you'll probably hear about it from him first.
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Welcome to the new motorcycle industry! This will not change the rest of the industry much. I suspect that Royal Enfield will soon have another Indian centered competitor for Western markets. That's fine. The industry is struggling right now. RE is growing in comparison to many other brands. Affordable motorcycles are a win for every rider out there.
Support slavery and genocide? buy Chinese . Many Chinese products there is no alternative for , presently . Motorcycles more than most products are defined by country of origin . Nobody needs CFMoto. Free Tibet!