Indian partner Bajaj takes the helm
The financial rescue was made possible by the extensive involvement of India’s Bajaj Auto International Holdings B.V. Bajaj had already acquired a majority stake in May 2025, thereby preventing the liquidation of the long-established Austrian manufacturer. Bajaj already held a 49.9 percent stake in Pierer Bajaj AG, which in turn holds 74.5 percent of Pierer Mobility AG. The insolvency was averted thanks to the funds now provided, amounting to around 600 million euros (approximately 640 million US dollars).
Reasons for the crisis
The insolvency in November 2024 was due to a massive decline in demand, high inventory levels, and quality problems. At that time, the company was in a difficult economic situation. The restructuring process was on the brink of collapse several times, but was successfully implemented thanks to the tireless efforts of those involved, in particular the renowned insolvency lawyer Ulla Reisch.
Future prospects: Production to start in July
The approximately 3,000 employees at the headquarters in Mattighofen (Upper Austria) can now breathe a sigh of relief: Production is scheduled to resume at the end of July 2025. According to CEO Gottfried Neumeister, the focus is now on realigning the group and rebuilding a stable production and distribution network. Neumeister firmly rejected fears that the new ownership structure could lead to jobs being relocated to Asia. In the short to medium term, nothing is expected to change at the Mattighofen site.
Personnel changes at KTM
The takeover by Bajaj is also accompanied by significant personnel changes. Stefan Pierer, previously the face of the company, is stepping down from both operational and shareholder roles. The relevant agreements are to be implemented by May 2026.
Outlook for 2025
The KTM Group’s sales are expected to decline in the current fiscal year due to production losses. Nevertheless, according to the company, inventory reduction at dealers is progressing satisfactorily. Supply and demand are expected to be brought back into balance in the coming months.
