Bajaj Auto has officially taken over the lead role in KTM’s parent company, with the deal giving the Indian manufacturer full control over the European conglomerate. Bajaj has confirmed that its Dutch subsidiary, Bajaj Auto International Holdings BV, has acquired 100% of Pierer Bajaj AG. This holding company holds a majority stake in Pierer Mobility AG, the parent company of KTM and several other premium motorcycle brands. With this transaction on November 18, KTM and the wider Pierre Mobility network now come directly under Bajaj Auto.
With this acquisition, a phase of large-scale rebranding has also started. Pierer Bajaj AG will soon be known as Bajaj Auto International Holdings AG, while Pierer Mobility AG will be renamed Bajaj Mobility AG, subject to the usual approvals. Leadership changes are also going to happen soon, and the boards and management teams of all the related companies, including KTM, are preparing to restructure. This effectively ends the long-standing stewardship of the brand by the Pierer Group.
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Before the deal, Bajaj Auto owned 49.9% of Pierer Bajaj AG (PBAG), while the majority stake was held by Pierer Industry AG. PBAG itself owned about 75% of Pierer Mobility AG (PMAG), which meant that Bajaj indirectly owned about 37.5% of KTM.
Following this transaction, Bajaj Auto International Holdings BV (BAIH) took full ownership of PBAG by acquiring the remaining shares. This made PBAG a wholly owned subsidiary of BAIH, and thus a smaller subsidiary of Bajaj Auto. Since PBAG holds 74.9% stake in PMAG/KTM, both the companies have now also become indirect subsidiaries of Bajaj.
Bajaj and KTM have been working together for years, and Bajaj has been a major financial backer of the Austrian brand during difficult times. But this is the first time the Indian manufacturer has taken full control, giving it a direct role in everything from future model planning to global manufacturing and brand strategy.
Stefan Pierer has been leading KTM since the early 90s, stepping in when the company was in trouble and gradually turning it into a global performance-bike brand. Bajaj Auto entered the sector much later, buying its first stake in KTM in 2007 and further strengthening the partnership as the two companies grew closer over the years. What started as a minority investment eventually became one of the industry’s strongest trans-continental alliances, laying the foundation for the entire change in ownership that exists today.
