MotoGP manufacturer KTM is set to receive financial backing from Bajaj Auto to help repay its debt, according to reports in India.
KTM has been navigating its way through a major financial crisis with its debts exceeding €2 billion.
Since last winter, the Austrian manufacturer forced it to layoff staff, pause production and reshape its board of directors in response to his financial situation.
However, earlier this year, KTM won a major battle in the regional courts of Austria when its restructuring plan was accepted by creditors.
This plan will see 30% of debts repaid to creditors by 23 May of this year, with KTM needing approximately €600 million to make this payment.
Numerous companies have expressed interest in investing in the Austrian manufacturer, but no official agreements have been signed.
A report from Indian media now states that Bajaj has taken out a loan of €566 million to allow KTM to pay off its debts.
Bajaj Auto has confirmed the loan has been guaranteed by JPMorgan Chase, DBS Bank of Singapore and Citigroup, and will likely see the Indian company gain even greater influence within KTM.
Pierer Bajaj AG owns a majority 74.9% of KTM’s parent company Pierer Mobility AG.
Bajaj Auto ‘in negotations’ with KTM over financial agreement
Bajaj Auto has released a statement commenting on these reports, though hasn’t confirmed that the money it has raised is to be used on KTM’s debts.
The full statement reads: “This is with reference to various media reports published in the mainstream media on 18/19 May 2025 and the material price movement on 19 May 2025 in the equity shares of the Company listed on BSE Ltd. and National Stock Exchange of India Ltd.
“The said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is to fund the restructuring of KTM AG.
“In this regard, we would like to clarify that our wholly owned subsidiary, Bajaj Auto International Holdings BV, is in negotiations and exploring various alternatives to participate in the restructuring of KTM AG, under a plan approved by its creditors.
“Involvement by Bajaj Auto BV in the restructuring as well as arrangements in this behalf are being finalised and the Company will make necessary disclosures at the appropriate time following Regulation 30 of the Listing Regulations.”
The future of KTM’s racing programmes remains unclear at this stage. However, it insists there are no plans to stop racing in MotoGP and in the winter confirmed it has been drawing up plans for an 850cc engine for the series’ 2027 rules reset.
