Bajaj to Acquire 90% Stake in KTM?

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

Bajaj to Acquire 90% Stake in KTM? KTM RC8 R ground level 635x424

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.

Comment:

  1. 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.

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

  3. Alex says:

    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.

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

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

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

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

  8. skadamo says:

    RT @CW1Miles: RT @Asphalt_Rubber Bajaj to Acquire 90% Stake in KTM – http://bit.ly/bQLElJ #motorcycle

  9. Dora Fang says:

    Indeed. Holy cow! RT @SoCalBuellRider: Holy moley- RT @Asphalt_Rubber Bajaj to Acquire 90% Stake in KTM – http://bit.ly/bQLElJ #motorcycle

  10. Brian says:

    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.

  11. Fake James says:

    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。

  12. Jenny Gun says:

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

  13. RSVDan says:

    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–/

  14. 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

  15. Brammofan says:

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

  16. Jeffrey J. Ward says:

    There goes the neighborhood.

  17. 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

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

  19. @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

  20. Smith says:

    bajaj and ktm its rumor or not

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