New Delhi6 minutes ago
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Bajaj Auto has now acquired complete control of Austrian bike manufacturer KTM. The company has purchased KTM’s parent company Pierer Mobility AG (PMAG). Due to which Bajaj has become the sole owner of KTM, Husqvarna and GasGas brands.
The company has given information about this deal in BSE-NSE filing. Now Bajaj has got the power to take full decisions on KTM’s strategy, products and operations.
Journey from partnership to ownership
Bajaj and KTM entered into partnership 17 years ago in 2007. Bajaj then bought 14.5% stake in KTM. After that in 2012, KTM entered India and Duke 200 was launched with the help of Bajaj. This bike got good response in the Indian market. Lakhs of units of this bike were sold and made KTM popular in India.
Gradually Bajaj’s stake in KTM increased, it became 48% in 2020 and reached 49.9% the very next year. In recent years, KTM had to face financial crisis. The company was forced to stop even the development of MotoGP bikes.
In such a situation, Bajaj supported KTM’s operations by investing more. Today Bajaj Auto International Holdings BV (BAIHBV) acquired PMAG, giving Bajaj a 74.9% shareholding in PMAG. Now PMAG has become a subsidiary of Bajaj Auto.
Bajaj Auto has purchased KTM’s parent company Pierer Mobility AG (PMAG).
Deal details: Name changed and management restructuring started
As part of the deal, PMAG has been renamed Bajaj Mobility AG. Also the name of Pierer Bajaj AG became Bajaj Auto International Holdings AG. Changes have also been made in the management and board members, so that the operations can be run smoothly.
Bajaj Chairman Rahul Bajaj said, ‘This step takes our long-term partnership to the next level. Will use KTM’s strength in India and global markets. Although the deal value was not mentioned in the official statements, it is clear that Bajaj will now have full control over the future of KTM.
KTM’s growth will get a new boost in the Indian market
This deal can prove to be a game changer in the Indian two-wheeler industry. KTM’s premium bikes like Duke and Adventure series are already popular among the youth. With the combination of Bajaj’s manufacturing strength and KTM’s technology, new models will now be launched soon.
Bajaj gave the reach to KTM in India. Earlier these bikes were limited to big cities only, but with Bajaj’s network they reached small towns and villages. Its fan base also increased a lot. Globally Bajaj will benefit from KTM’s research data, which will help in improving their bikes. Experts believe that this move will strengthen the Indian bike industry at the international level.
Bajaj and KTM entered into partnership 17 years ago in 2007.
Future Plans: Restructuring will brighten the future of KTM
Bajaj has already started restructuring the management and operations of KTM. The company’s focus will now be on product innovation. The company will work especially on electric and high-performance bikes. Plans are also underway to revive KTM’s MotoGP projects.
Bajaj MD Rajiv Bajaj said, ‘We will take KTM to new heights. This is not just a business deal, but a fusion of two companies which will change the global market. New launches and expansion plans may be announced in the coming months. Overall, this partnership has now turned into full ownership, which is indicating a brighter future for both the companies.
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