Rajiv Bajaj, MD and CEO of Bajaj Auto, had recently announced that the company will shed Bajaj brand from its automobiles and will concentrate only on four major brands. KTM is one of the automobile brands where Bajaj intends to lay its focus on. The company has already invested 20 million euros in KTM Power Sports AG for a 36.67 percent stake.
"KTM Power Sports AG, Europe's second largest motorcycle manufacturer, has increased its capital by 42.99 million euros by inducting 13.24 million euros through conversion of loans and 29.7 million euros through cash rights issue," Bajaj Auto Managing Director Rajiv Bajaj said in a statement.
KTM currently has major shareholders as Cross Industries, owned by Stefan Pierer (CEO KTM) and Rudy Knunz (Chairman KTM) who together own more than 50 percent of the stake. Bajaj and KTM will introduce new 125cc bikes specifically designed for the Indian market. The bikes will be manufactured at Bajaj’s Chakan plant near Pune. The bikes will be sold in the European markets under KTM brand and will be later on introduced in the domestic market as well.
