KTM has been officially pulled back from the brink thanks to a €600 million investment from manufacturing partner Bajaj Auto – adding to the €200 million sum previously received from the Indian firm.
The cash injection, which landed just days ahead of the May 23 deadline, enables the Austrian manufacturer to fulfil its legal obligations and pay the agreed 30% quota to creditors – a lifeline that allows the three subsidiaries of KTM to skirt liquidation and remain operational.The fresh funding follows third-party reports earlier this month that Bajaj’s European investment arm had raised €566 million through unsecured loans from JPMorgan, DBS, and Citigroup. While the official purpose of the loan wasn’t confirmed at the time, the timing and amount now appear directly tied to KTM’s financial bailout.
“Today we have been given the opportunity to continue the history of KTM,” said KTM AG CEO Gottfried Neumeister. “Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further €600 million for our new start.
Bajaj, who owns a 49.9% stake in KTM, has previously stepped up as a major player in the ‘Ready to Race’ firm’s resurrection, helping kickstart the Austrian brand’s manufacturing lines back in March with a €200 million injection.
While the announcement is welcome news for the brand, it caps off an arduous few months that have seen over 1850 jobs lost.Even with creditors now appeased, Pierer Mobility posted troubling operating losses of €1.28bn as 2024 came to a close, with revenue down nearly 30%. Over 60,000 fewer bikes were sold last year, inventory levels have been slashed, and KTM’s withdrawal from the bicycle market is already under way.
Then there’s the still-delayed model launches – including the 1390 Super Duke GT, 990 RCR, and multiple Super Adventure variants – which were shown off late last year but have yet to arrive in dealers.
