Bajaj Auto may increase its stake in KTM by up to 56 per cent and is believed to be holding talks with the Austrian bike maker in this regard. With this move, the Pune based company will get the controlling stake in the company and will play a crucial role in KTM’s business decisions.
Bajaj currently holds 47 per cent stake in KTM and in the past were seen hiking their stake. The first time Bajaj picked up a stake in KTM was in 2007 by buying 14.5 per cent for about Rs 300 crore which was later increased to 38.09 per cent.
"Bajaj is in talks to increase its stake in KTM to 55-56 per cent. This follows the plans to expand manufacturing of more premium KTM models at Bajaj's facilities, while also doing joint development work, "said a source to the Indian Express.
KTM is believed to be betting big on its alliance with Bajaj. The company is expecting to produce half of its global output in India by 2015. Also, recently Pierer Industrie AG, a holding company owned by Stefan Pierer, CEO of KTM, bought the Swedish motorcycle brand Husqvarna from BMW Motorrad. With this development, the company plans to launch the first Husqvarna in India in next two years and also export models from here to other international market.