Bajaj to Acquire 90% Stake in KTM?

02/11/2010 @ 1:26 pm, by Jensen Beeler21 COMMENTS

Rumors are indicating that KTM has invited Indian manufacturer Bajaj to increase its stake in the Austrian company from the current 30% to up to 90%. While neither party has confirmed the news, it is reported that Bajaj has accepted KTM’s offer, and will immediately purchase an additional 21% of the company’s stock, making it a 51% majority shareholder. Bajaj will then increase its ownership to 90% at a later undecided time.

The move comes as a surprise to many industry insiders, and is likely a bi-product of the economic recession, which has deeply affected KTM’s cashflows. KTM’s invitation to Bajaj is likely an indication that the Austrian company is in need of an additional cash infusion, as it tries to piece back together its off & on-road motorcycle sales.

Bajaj’s ownership in KTM has seen the Austrian company seriously begin to bring motorcycles to the sub-500cc market segment, and is likely a driving force behind KTM’s pursuit of electric power systems in dirt bike applications.

  • http://SoCalBuellRiders.Com SoCal Buell Riders

    This just goes to show how strong the transportation market is in India (remember Tata’s acquisition of Jaguar?).

    It makes me wonder what might have been had Buell had a low-cost bike available for sale in India. A variant of the Blast comes immediately to mind.

    Now Bajaj controls KTM and has a partnership with Motoczysz. They’ve become a true international motorcycle power. Harley-Davidson, with its recent push into the Indian market, would do well to look to Bajaj for examples of what works in that market, rather than pinning all their hopes on selling Electra Glides in India.

  • http://twitter.com/robin125/status/8981446628 Robin Hartfiel

    RT @Asphalt_Rubber: Bajaj to Acquire 90% Stake in KTM – http://bit.ly/bQLElJ #motorcycle

  • Alex

    I agree, though it’s hard to believe that H-D will recognize the viability of low-cost small-displacement (or hey, even electric??) personal transportation in a market such as India’s.

    Too large to have a low-inertia dynamic response to market conditions; too tied up in tradition to want to do anything about it anyways.

  • http://twitter.com/grantpeters/status/8982993160 Grant Robert Peters

    RT @Asphalt_Rubber: Bajaj to Acquire 90% Stake in KTM – http://bit.ly/bQLElJ #motorcycle

  • http://twitter.com/cafe_racer/status/8984284950 John Siebenthaler

    never could/would have imagined: Bajaj to Acquire 90% Stake in KTM http://bit.ly/b2ykmq powersports

  • http://news.motorbiker.org/ Mike Werner

    Would have been nice to receive a credit for the source, like a link back…..

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  • Brian

    India market does not need more small bikes, there is more than enough competition in the economical commuter segment and the 150-220cc single cylinder sport style segment. What is seriously needed is mid-size dual-sport bikes – something like XL350, DRZ, DR650, etc.

  • http://twitter.com/fakejames/status/9004972046 Fake James

    http://www.asphaltandrubber.com/news/bajaj-acquire-90-stake-ktm/ BajajがKTMの90%出資らしい。ビューエルにも出資してよ。

  • http://www.asphaltandrubber.com Jenny Gun

    Mike if you were my source, I would have credited you, but you weren’t, so…

  • RSVDan

    KTM have denied this rumor which was started in the Indian press. Sounds like it was just a bunch of hot air. Baja will not be buying any further interest in KTM.

    http://www.motorcyclenews.com/MCN/News/newsresults/General-news/2010/February/feb1210-ktm-deny-bajaj-takeover-reports–/

  • http://twitter.com/grantpeters/status/9077832629 Grant Robert Peters

    RT @Asphalt_Rubber: Nice copy/paste job by @BikerHolic done here: http://bit.ly/cbhDHb You can find the original here: http://bit.ly/bQLElJ #plagiarism #thief

  • http://twitter.com/brammofan/status/9081878762 Brammofan

    Bikerholic = plagiarism RT @Asphalt_Rubber: copy/paste job by @BikerHolic here: http://bit.ly/cbhDHb original here: http://bit.ly/bQLElJ

  • Jeffrey J. Ward

    There goes the neighborhood.

  • http://twitter.com/socalbuellrider/status/9091338394 SoCal Buell Riders

    RT@ Nice copy/paste job by @BikerHolic done here http://bit.ly/cbhDHb You can find the original here http://bit.ly/bQLElJ #plagiarism #thief

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  • http://twitter.com/bikerholic/status/9097002625 Nigel Tasker

    @Asphalt_Rubber RT : Bajaj to Acquire 90% Stake in KTM http://bit.ly/bQLElJ This was sent to us via email and published in error – apologies

  • http://best-streaming-movies.blogspot.com/ Smith

    bajaj and ktm its rumor or not

  • http://twitter.com/barrygrussell/status/9124239888 Barry Russell

    Motorcycle industry shakeup: India's Bajaj taking controlling stake in KTM http://bit.ly/dCdoSA