KTM AG’s future appears to be secured following reports in India that major shareholder Bajaj Auto i🍌s taking ou🏅t a substantial loan to help the Austrian company’s debt repayment.

KTM has been navigating its way through a major financial crisis since last winter that forced it to layoff staff, pause production and re♚shape its board of direct🐠ors.

Its debts exceeded €2 billion.

Earlier this year, KTM won a major battle in the regiona𒈔l courts of A🐟ustria when its restructuring plan was accepted by creditors.

T🙈he plan will see 30% of debts repaid to creditors by 23 𒁏May of this year.

The amount KTM needed to make this payment was around €600 million, with numerous companies pledging an interest in investment but not yꦡet signing anything official.

A report from Indian media now states that Bajaj has taken out a loan of €566 mill🌼ion to allow KTM to pay off its debts.

The loan has been guaran⛦tee💞d by JPMorgan Chase, DBS Bank of Singapore and Citigroup, which Bajaj Auto has confirmed.

This loan from Baj🅷aj will also likely see the Indian company gain even greater influence within KTM.

Pierer Bajaj AG owns a majority 74.9% of KTM’s parent companꦫy Pierer Mobility ꧋AG.

Bajaj Auto 𓂃has released a statement commenting on these reports, though hasn't confirmed that the money it has raised is to be used on KTM's debts.

The full statement reads: "This  is  with  reference  to  various  media  reports  published  in  the  mainstream  media  on  18  /  19  May  2025  and  the  material  price  movement  on  19  May  2025  in  the  equity  shares  of  the  Company listed on BSE Ltd. and National Stock Exchange of India Ltd. The said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is for the purpose of funding the restructuring of KTM AG. 

"In this regard, we would like to clarify that our wholly owned subsidiary, Bajaj Auto International Holdings BV, Netherlands (“Bajaj Auto BV”), is in negotiations and exploring various alternatives to  participate  in  the  restructuring  of  KTM  AG,  pursuant  to  a  plan  approved  by  its  creditors. Involvement by  Bajaj  Auto  BV  in  the  restructuring  as  well  as  arrangements  in  this  behalf  are  being  finalised  and  the  Company  will  make  necessary  disclosures  at  the &nb🎃sp;appropriate  time  in  accordance with Regulation 30 of the Listing Regulations."

The future of KTM’s racing programmes remains unclear at this stage, with the brand scaling back its number of factory-supported rider✃s across all disciplines this year in💧 the wake of its financial crisis.

At the outset of KTM going into self-administration, a planned witꦓhdrawal from MotoGP in 2026 was mentioned.

However, KTM insists that it has no plans to s🔴top racing in MotoGP and in the winter confir💎med it has been drawing up plans for an 850cc engine for the series’ 2027 rules reset.