Major shareholder set to step in to save KTM

KTM AG’s future appears to be secured following reports in India that major shareholder Bajaj Auto is taking out a substantial loan to help the Austrian company’s debt repayment.

KTM has been navigating its way through a major financial crisis since last winter that forced it to layoff staff, pause production and reshape its board of directors.

Its debts exceeded €2 billion.

Earlier this year, KTM won a major battle in the regional courts of Austria when its restructuring plan was accepted by creditors.

The plan will see 30% of debts repaid to creditors by 23 May of this year.

The amount KTM needed to make this payment was around €600 million, with numerous companies pledging an interest in investment but not yet signing anything official.

A report from Indian media now states that Bajaj has taken out a loan of €566 million to allow KTM to pay off its debts.

The loan has been guaranteed by JPMorgan Chase, DBS Bank of Singapore and Citigroup.

This loan from Bajaj will also likely see the Indian company gain even greater influence within KTM.

Pierer Bajaj AG owns a majority 74.9% of KTM’s parent company Pierer Mobility AG.

The future of KTM’s racing programmes remains unclear at this stage, with the brand scaling back its number of factory-supported riders across all disciplines this year in the wake of its financial crisis.

At the outset of KTM going into self-administration, a planned withdrawal from MotoGP in 2026 was mentioned.

However, KTM insists that it has no plans to stop racing in MotoGP and in the winter confirmed it has been drawing up plans for an 850cc engine for the series’ 2027 rules reset.