KTM “Save”: Bajaj intervenes with 566 million euros becoming, in fact, Indian owned. There is no certainty, however, that KTM continues in the racing sector, primarily in MotoGP even over 2026
Therefore, the Indian giant Bajaj intervened with a 566 million euro loan decisive for the 600 million euros which by May 23 must be given to the bankruptcy trustee of KTM To close 30% of the heavy debt with creditors. Specifically, the 566 million euros were paid by Bajaj Auto (guaranteed by financial institutions such as JP Morgan Chase Bank Na, DBS Bank Ltd, Citigroup Global Markets Asia), the Indian company founded in 1945, second world scooter manufacturer and fourth world motorcycle producer with over 1 million units produced per year. Bajaj Auto holds 49.9% of Pierer Bajaj AGwhich in turn has 74.9% of Pierer Mobility AG, the holding holder who controls Ktm AG and other brands such as Husqvarna and Gasgas.
Invented motorcycles
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At this point, is KTM out of the crisis, out of the risk of closing? No. That of Bajaaj, for now, is only a stop. Thus, meanwhile, the sensational failure for a crisis due to the overproduction of over a thousand motorcycles per daywith large invented stocks still in the streets, gradually aggravating the already critical economic situation in a heavier way. In this context, it is not also understood the satisfaction by the exponents of the Austrian government with respect to the evolution of the KTM crisis: in reality How many of the current 6-7 thousand employees will remain in the Mattighofen company?
KTM becomes Indian
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Bajaj’s 566 million euros are not a loan: in fact, Today KTM changes skin and master becoming Indiangiven that Bajaj should bring its shareholding from the current 49.9 to 63%. As Bajaj Buy Ktm aiming to avoid the failure of the Austrian brand also to recover the investments made so far on the motorcycle company, of over 1.2 billion euros. In India it will be decided what the new KTM will be. Bajaj already ready a first draft of renovation and relaunch plan of the KTM with heavy effects starting with the reduction of employment, immediately over 20% less in European factorieswith the cancellation of models already in difficulty on the markets and the launch of new bikes by focusing on a new twin cylinder 850 cc engine.
Farewell to racing
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In India it will decide even if KTM will continue with the races in the Moto3 and Moto2 world championship and, above all, in MotoGP. Already in the reorganization plan discussed months ago in the first hearing with the creditors there was a rumor that left no doubts, in which it was specified: “The exit from MotoGP, Moto3 and Moto2 is expected in order to reduce costs”. Just a threat to try to save the salvable? Today, beyond the most reassuring statements repeatedly made by the current KTM leaders on the future of the races, the interested parties of the racing sector, primarily drivers, engineers, technicians, are in strong tension. There is no certainty that KTM continues in the racing sectorprimarily in MotoGP also over 2026, the year of expiry of the contract with Dorna and the last with the current technical regulation. Nothing is excluded, including KTM’s release from MotoGP (and not only) as long as the end of the 2025 season. One thing is certain, On Bajaj races has its own line: There is not only for the image but if there are financiers/sponsors who support the necessary investments. That’s why there is no security on the future KTM races that other times in the past has closed with races, and then returning after years. Thus, in this “Russian Mountains”, in the KTM racing department, everyone is looking around, looking for new outlets. The current four MotoGP Acosta drivers, Binder, Bastianini, Vinales are not stopped waiting to receive the “Benservito”. And, in particular, in Valentino Rossi’s VR46 team, we look with optimism what is happening in KTM, ready to welcome Pedro Acosta.
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