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Bajaj Auto Becomes Sole Owner Of KTM After PBAG Acquisition
KTM and its brands are now under complete control of Bajaj Auto, after the Indian brand acquired Pierer Mobility AG, the parent company of KTM. The Pierer Group, which is the parent company of KTM, has officially stepped out, as Bajaj now owns 74.9% of PMAG (Pierer Mobility AG).
Bajaj Auto Becomes Owner of KTM
Bajaj Auto has reportedly told BSE and NSE about Bajaj Auto International Holdings BV purchasing PBAG. This makes the parent company a subsidiary of Bajaj Auto. With this acquisition, Bajaj now controls KTM, Husqvarna, and GasGas.
This also gives them full control over KTM, both domestically and internationally. The Pune-based auto manufacturer can now decide the next steps, strategy, products, and much more.
KTM's Financial Crisis
KTM, as a brand, was struggling financially over the last couple of years. They even stopped their MotoGP bike development due to the financial crisis. Bajaj Auto was the one that came to the rescue by investing more in the brand and helped them to continue their operation.
Bajaj has already started restructuring KTM management and operations. Pierer Mobility AG will now be called Bajaj Mobility AG. The Management and board members have been changed. Pierer Bajaj AG will now be renamed as Bajaj Auto International Holdings AG.
KTM and Bajaj have a 17-year-long partnership, which started in 2007 when Bajaj Auto acquired a 14.5% stake in KTM. In 2012, KTM entered the indian market with the help of Bajaj by launching the Duke 200. The Partnership was so successful that every product became a massive hit, garnering sales.
By 2020, Bajaj had almost a 48% stake in KTM, and in one year, it had increased to a 49.9% stake. Now, by buying its parent company, Bajaj Auto has become the sole owner of KTM. They will now decide the future of the Austrian company, and we believe it will be brighter.
Bajaj played a very big role in KTM's success in the indian two-wheeler market. With their help, KTM had reached every corner of the country, gaining a huge fan following for KTM bikes. The partnership also helped Bajaj as they got access to some key research data, which helped them grow as a company.
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