“Current Position Is Extremely Difficult But Need To Find A Sustainable Solution,” Rajiv Bajaj On KTM’s Financial Crisis

Bajaj is racing against time to find a "sustainable solution" for its troubled partner – KTM – who found itself in financial troubles since late last year. After May 23, the Austrian motorcycle manufacturer could possibly face bankruptcy. Bajaj Auto’s MD and CEO, Rajiv Bajaj revealed how he and his team have been "preoccupied" with resolving the crisis over the past five to six months. Despite the challenges, Bajaj remains committed to preserving the 17-year partnership with KTM, which has grown to become "the world's number one premium motorcycle brand, overtaking Harley."

(Also Read: KTM Halts Production In Austria, Again!)

"KTM is a fantastic brand," he noted, highlighting its dominant position in off-road racing. "For us, as Bajaj, it's a very large part of our business in revenue terms, it's very profitable for us. So this is not something we would like to let go of easily." Rajiv Bajaj further emphasised how the solution to KTM’s crisis should be viable and sustainable for the long run. “We have to have something very sustainable in the future," he added. 

Already this year, Bajaj has come to KTM's rescue to restart the production line at Mattighofen. The executive outlined several funding options under consideration: "Whether we do it ourselves, we do it with a strategic investor, i.e. an industrial partner, or we do it with a financial partner or debt funds, etc. These are all the options that are obviously on the table." 

With the Austrian brand being such an integral part of Bajaj’s global player strategy, it is unlikely that KTM will meet its end. The chances are high of Bajaj assuming controlling stake and thus, dictate the future of how the Austrian giant can get back to its former glory. And with products like the 390 Adventure, 390 Enduro R and the upcoming 390 SMC R creating a lot of waves in the space, things might just take a more positive turn for the orange-blooded bike maker.

(Source)