Bajaj Auto to Invest €150 Million in Netherlands Subsidiary
Bajaj Auto, the Indian two-wheeler and three-wheeler manufacturer, announced plans to invest €150 million (approximately Rs 1,364 crore) in its Netherlands subsidiary, Bajaj Auto International Holdings BV. The investment will be made in the form of equity, preference capital, or convertible loans, as determined later.
This investment is significant as Bajaj Auto International Holdings BV holds a 49% stake in Austrian motorcycle manufacturer KTM. KTM has been facing financial difficulties and recently announced emergency restructuring measures. The restructuring process is expected to be completed by February 2025.
Bajaj Auto's partnership with KTM dates back to 2007 when it acquired a 14.5% stake in KTM Power Sports AG. The company gradually increased its stake to 48% and then to 49.9% in 2021. Bajaj Auto currently manufactures small-displacement KTM and Husqvarna motorcycles at its Chakan plant in India.
However, Bajaj Auto has faced setbacks in KTM exports in the recent quarter due to the company's global financial issues. The company has taken a cautious approach to avoid compromising the recoverability of export revenue.