KTM AG, a step-down subsidiary of Bajaj Auto Ltd in Austria, has secured an unsecured loan of ₹5,905 crore (€550 million) for a five-year term to refinance its existing debt with Bajaj Auto International Holdings B.V.
The refinancing follows a newly signed agreement with an international banking consortium comprising J.P. Morgan SE, HSBC, DBS Bank Ltd and MUFG Bank Ltd.
The loan, carrying interest in the low- to mid-single-digit percentage range, fully replaces the €450 million financing extended by Bajaj Auto International Holdings B.V. in 2025 as part of KTM’s restructuring process.
The refinancing strengthens KTM AG’s long-term financial foundation, coming at a time when its operating performance has shown clear improvement.
Bajaj Mobility AG (formerly Pierer Mobility), one of Europe’s leading premium motorcycle manufacturers and the listed subsidiary of Bajaj Auto, is the holding company of KTM AG.
Effective November 18, Bajaj’s ownership in KTM Austria rose to 75%, triggering an immediate turnaround plan focused on ensuring liquidity, strengthening the top management team, prioritising cost reductions, driving business growth, and executing the revival strategy.
After a challenging first half of 2025, performance improved sharply in the second half, with global retail sales rising about 60% over H1 2025. Wholesale deliveries stabilised in line with demand, and inventory levels were reduced by more than 100,000 units.
KTM AG Chief Executive Officer Gottfried Neumeister said the successful refinancing reflects strong international bank confidence in KTM AG’s future.
“An unsecured loan of this magnitude is an exceptionally strong signal and provides us with stability, flexibility, and momentum for the years ahead,” he said.
The group also maintained strong momentum in motorsports. Following a record 2025 with 29 championship titles, KTM AG carried forward the momentum into 2026, underscoring the technological strength and global appeal of the KTM, Husqvarna Motorcycles and GasGas brands.