Austrian motorcycle manufacturer KTM has assured that the judicial restructuring of its holding company, Pierer Mobility AG, will not affect its business operations in India or its select export markets. This announcement comes after KTM AG, along with its subsidiaries KTM Components GmbH and KTM F&E GmbH, filed for a restructuring process due to liquidity constraints on November 26.
Despite the restructuring affecting the business activities out of Austria, including exports from Austria, India, and China to major markets in the US and Europe, KTM has stated that its collaboration with Bajaj Auto in India remains intact. The companies jointly develop and Bajaj Auto manufactures products, particularly motorcycles under 400cc, which are not only sold in India but also exported to various international markets.
Bajaj Auto, through its subsidiary Bajaj Auto International Holdings BV (BAIHBV) based in the Netherlands, holds a 49.9% stake in Pierer Bajaj AG (PBAG) in Austria, which controls nearly 75% of Pierer Mobility AG. This partnership underscores Bajaj Auto’s strategic role in KTM’s operations, particularly in managing the business and exports in different geographies.
The collaboration has been fruitful for Bajaj Auto, which reported record sales volumes of KTM and Husqvarna brands in India in the last financial year. The company emphasizes its commitment to continuing the growth and success of its premium motorcycle segment in partnership with its channel partners.
KTM reassures that while its Austrian operations face challenges, the Indian segment operated by Bajaj Auto, along with selected international markets, will continue to function normally, securing the brand’s position in these critical markets.
AUTO TECH | Edge Storage Fuels the Future of Smart Vehicles
