The end of the Pierer era
Stefan Pierer, who had shaped and strategically expanded KTM for decades, not only retires as a shareholder, but also relinquishes his functions at Pierer Mobility AG. Pierer will also step down as CEO of the Group once the reorganization is completed in June. For many industry observers, this was an unavoidable step – not least because of KTM’s profound financial difficulties.
Via Pierer Bajaj GmbH, a company held jointly with Bajaj, Pierer last held a stake in Pierer Mobility AG, which in turn held 74.18% of KTM AG. This structure will now be completely taken over by Bajaj. As a result, Pierer is also losing the last possible control over the company, which once rose to become the European market leader in the off-road and naked bike segment under his leadership.
Restructuring with Indian help
The insolvency proceedings of KTM AG and two subsidiaries were on the brink of collapse for a long time. The lifeline finally came from Pune: Bajaj Auto International Holdings B.V. provided a total of 525 million euros (approx. 567 million US dollars). Of this, 450 million euros went directly to KTM AG, with a further 150 million euros being passed on via Pierer Mobility AG.
The required restructuring ratio of 30 percent is thus fulfilled. The insolvency administrators confirmed that the restructuring process can be completed once the funds have been transferred to an escrow account. The official legal force of the plan will be determined shortly by the regional court in Ried im Innkreis.
A new course under Bajaj
The takeover by Bajaj not only ends the insolvency proceedings, but also the Austrian management structure. In future, Bajaj will decide on strategy, production and market presence as the sole owner. Whether and to what extent production in Mattighofen (Upper Austria) will be retained is still unclear. Production stoppages and delivery problems have recently led to short-time working and a significant reduction in working hours. The restart of production has been announced for July 28, 2025.
There will also be personnel changes: Verena Schneglberger-Grossmann is moving up to the Executive Board of Pierer Mobility AG and will support CEO Gottfried Neumeister in the future. The latter announced that, together with Bajaj, he would provide an additional 600 million euros (approx. 648 million US dollars) in funding for the restart – in addition to the 200 million euros already made available.
An ailing empire
Pierer Mobility AG’s key financial figures paint a bleak picture: in 2024, sales fell by 29% and the operating result was minus 1.19 billion euros (approx. -1.29 billion US dollars). EBITDA was also clearly negative at minus 484 million euros (approx. -525 million US dollars). Equity is in the red at around 200 million euros (approx. -217 million US dollars), while the debt level continued to grow. The number of employees fell from around 6,100 to 5,300 – around 4,000 of whom work in Austria.
Bajaj – more than just an investor
The Indian Bajaj Group is no stranger: It has had a strategic partnership with KTM since 2007. In recent years, Bajaj has gradually increased its stake. Now the final transfer of power is taking place. Bajaj is one of India’s largest industrial groups and is active in numerous sectors – including financial services, household appliances and electrical engineering. The group has over 30,000 employees worldwide.
The decision to take over KTM completely is evidence of the strategic will to expand its market position in Europe. Even if many questions remain unanswered about the future direction, one thing is clear: the Pierer era is over and KTM will be managed under Indian control in the future.