KTM Financial Turmoil, BMW Eyes Acquisition as Bajaj Auto Infuses €50 million

Rumours of a possible acquisition of KTM by BMW Motorrad have sent ripples through the global motorcycle industry, raising questions about the future of one of Europe’s most iconic two-wheeler brands. The speculation follows a series of troubling financial developments at KTM, with insolvency proceedings currently underway and a key court decision imminent.  Austrian outlet oe24 reports that BMW Motorrad has emerged as the favoured candidate to acquire KTM, according to insiders close to the insolvency administrator. The upcoming court date on April 6 in Wels is expected to be pivotal in determining the fate of the embattled manufacturer. While both BMW and the debt restructuring firm AKV have yet to confirm the talks publicly, the lack of outright denials has fueled speculation. Or will KTM’s partnerships with CFMoto and Bajaj Auto come to the rescue?

KTM in Crisis

KTM AG, along with its associated brands GASGAS and Husqvarna, has been battling a liquidity crisis in recent months. Despite earlier denials from KTM executives regarding its financial distress and MotoGP exit rumours, many of those warnings have since materialized. The company, once seen as a dynamic challenger to larger OEMs, is now reeling from layoffs, production delays, and mounting debt.

The latest twist suggests that BMW may not only be interested in acquiring KTM but could consider relocating production outside Austria—potentially shutting down the Mattighofen facility and laying off up to 4,500 workers. However, industry observers question the feasibility of such a drastic move.“Killing the Mattighofen facility outright, as well as its employees, doesn’t really make sense when the industrial footprint is already there,” wrote RideApart’s Jonathon Klein. “Scaling back the footprint, however, makes sense.”

KTM on the Brink: Iconic Motorcycle Giant Files for Bankruptcy Amid €1.5 Billion Debt

A Lifeline from Bajaj

Meanwhile, KTM received a much-needed infusion of capital from its long-time Indian partner. On April 3, Bajaj Auto International Holdings BV (BAIH BV)—a wholly owned subsidiary of Bajaj Auto—invested ₹468 crore (€50 million) in convertible bonds issued by Pierer Bajaj AG (PBAG), KTM’s holding entity. This move is aimed at stabilizing KTM’s finances and resuming motorcycle production in phases.

Bajaj Auto, which already holds a 49.9% stake in PBAG, has reaffirmed its commitment to KTM’s recovery. While the investment offers short-term relief, it also opens the door for Bajaj to further consolidate its position within the group, potentially countering BMW’s rumoured bid.

What BMW Stands to Gain

If BMW does pursue the acquisition, it will gain access to KTM’s extensive off-road and performance motorcycle portfolio—a segment where BMW has a comparatively limited presence. It could also leverage KTM’s partnerships with CFMoto and Bajaj to expand production in cost-effective regions while scaling its own mid-range offerings. But absorbing KTM won’t be without challenges. Operational overlaps, cultural differences, and labour unrest could follow, especially if significant layoffs or factory relocations occur.

As the April 6 court decision looms, all eyes are on whether KTM’s storied legacy will continue under new ownership or face deeper restructuring. Whether BMW emerges as a white knight or Bajaj doubles down on its rescue efforts, the coming days may reshape the European motorcycle landscape in a profound way.