Bajaj Auto gets green light to take full control of KTM
Bajaj Auto Ltd. has secured approval from the Austrian Takeover Commission to acquire full control of Pierer Mobility AG (PMAG), the parent of KTM AG and other premium motorcycle brands. Already holding a 49.9% stake in the joint-venture company Pierer Bajaj AG (PBAG) in Austria, Bajaj will now acquire the remaining 50.1% from Pierer Industrie AG, thereby gaining indirect control of the Austrian group that controls KTM and related brands. The regulatory clearance was obtained under a “restructuring privilege,” which exempts Bajaj from making a mandatory public takeover bid under Austrian law. This approval follows other merger-control and foreign investment clearances, paving the way for full integration in the first quarter of 2026. The acquisition comes as KTM underwent a major debt relief and restructuring process supported by Bajaj, including a debt package of approximately EUR 800 million for KTM.
Tyre Times’ view
While this announcement concerns two-wheelers, there is a clear implication for the tyre industry. As Bajaj strengthens control of KTM’s global operations and ramps up production and exports, demand for two-wheeler tyres, especially premium and performance variants, is likely to grow. Tyre manufacturers supplying to the two-wheeler segment should anticipate increased orders, particularly for high-end models using KTM platforms. Additionally, as KTM and Husqvarna scale globally with Bajaj’s backing, the tyre supply chain may become more globalised, giving tyre makers in India and elsewhere opportunities to participate in exports and OEM supply. For the aftermarket also, growing KTM volumes mean more replacement tyres in emerging markets. Tyre-sector players should track how KTM’s platform expansion translates into tyre fitments and export flows.
