KTM Restructuring and New Launches Key to

BAJAJ-AUTO

’s Dual Strategy

is embarking on a turnaround plan for KTM, its largest acquisition, even as domestic market share declines. The €800 million deal gives Bajaj full control of KTM, which filed for insolvency in late 2024 after a sharp sales slowdown in Europe. The revival strategy focuses on restructuring operations, exiting non-core brands, and leveraging synergies in manufacturing and supply chains. While exports remain profitable, Bajaj faces challenges in India’s mass motorcycle segment, where Honda has gained ground. Bajaj acquired KTM for €800 million (₹7,778 crore), including €600 million debt infusion. The plan involves discontinuing smaller KTM brands (bicycles, cars, KTM X‑Bow) to focus on KTM and Husqvarna motorcycles. Consolidation will begin in 1HCY26, with operational benefits expected from 2HCY26. KTM sold 292,497 motorcycles in 2024, down 21% YoY, versus 372,511 units in 2023. Excess capacity and debt of $500 million led to insolvency. Bajaj aims to stabilize KTM’s balance sheet and reduce costs, while analysts stress the need for a product-focused revival to regain consumer traction in premium motorcycles. Bajaj will integrate KTM’s supply chain with its own, similar to Tata Motors’ Iveco strategy, to cut costs and improve efficiency. KTM’s premium positioning could help Bajaj compete with Royal Enfield, TVS, Honda, and Suzuki in the global premium motorcycle segment. Bajaj’s domestic market share fell from 12% (Apr–Nov 2024) to 11% (Apr–Nov 2025). Sales dropped 5% YoY to 1.59 million units, while the overall market grew 3% to 14.3 million units. Bajaj lost ground in the sub‑125cc segment, with sales down 12–13%. Despite domestic weakness, Bajaj posted a 53% rise in Q2FY26 net profit to ₹2,122 crore, supported by 14% export growth (1.24 million units). Management plans new launches—three Pulsar variants (Dec ’25, Mar ’26, May ’26) and a 125cc commuter bike in FY27—to regain domestic share.