Baja Auto now the second highest stakeholder in KTM with 47 % share

Bajaj Auto has enhanced its stakes in KTM power sports AG of Austria. India's second largest two-wheeler manufacturer has bought a 6.3% stake in KTM taking their total share over 47 %. Bajaj Auto's Netherlands-based subsidiary, Bajaj Auto International Holdings made the purchase for Bajaj Auto. It was an open market transaction where the company bought their share from the key stake holders. Both the companies can use the union for more leverage on technical strengths and global network. It was the year 2007 that started Bajaj Auto's interest in KTM and invested Rs. 300 crore thereby buying a 14.5% share. Since then they have continued to buy KTM's share and now with their recent buying, their stake has risen just above 47%.

But they have denied the possibility of getting a majority stake in KTM business in the future as that would affect their exclusiveness. Also the understanding between Bajaj Auto and KTM is such that Bajaj Auto cannot buy more than 49% stake. Stefan Pierer and Rudolf Knuenz are the current majority holders with 51% stake. The current stake purchase is in alignment with their long term plans of making KTM as world's number 1 premium motorcycle manufacturer. The year 2011 saw KTM sales go upto 81,200 which was a 22.4% increase from the previous year with 66,237 vehicles sold in 2010.

KTM has now surpassed BMW's sales becoming Europe's largest selling brand with KTM selling 8300 to BMW's 8250 units sales this month. KTM Duke is the major game changer when it came to sales with the KTM Duke 125 and 200 being a major hit all over the Europe. With a target of 200,000 motorcycles to be sold globally by 2015, KTM aims another 25,000-30,000 sales in India this year. Bajaj has always been itching to creep into the Austrian auto major and buy as much stake as they possibly can and with this, they are now the second largest stake holder in the company.