In the recent past, KTM went through extensive financial doldrums and Bajaj came to its rescue with its Netherland subsidiary, Bajaj Auto International Holdings BV. The Subsidiary arranged an 800 Euro million Debt package that enabled KTM to meet the conditions of a creditor restructuring program. About 200 million were used to maintain operations, while around 600 million euros were used to settle creditor claims and associated liabilities.
A recent interview, with Rakesh Sharma, Executive Director of Bajaj Auto Autocar-professional revealed that, Bajaj has a comprehensive multi-pronged strategy to rebuild KTM as a brand from the brink of collapse. While the most integral details of the plan were not detailed, the report from Autocar professional revealed that Bajaj would enforce a revamped governance framework that would ensure that the workstream is in a stable state. Beyond that, Bajaj would be leveraging its cost effective sourcing and component management to reduce the inefficiencies at KTM.
Innovation And Integration
As Bajaj takes over, full control of KTM Holding Company, they have assured that the road ahead would be about innovation rather than just integration. Bajaj has further elucidated that the partnership has before this spawned strong results, but transforming that into a sustained success under a single shareholder would require more financial discipline.
Bajaj would carefully align its cost effective, frugal engineering with KTM’s high functioning, premium positioning and European culture. The harmony of these distinct operational areas would spawn results that would help the brands shift their over global market dynamics.
In a recent report the new E- Duke Concept was showcased as a prospective launch ahead. It’s possible that the union of both of these brands works together, towards the development of new EV sports bikes that would lead to new a new dawn for KTM
