Bajaj Auto's Bold Move: Euro 150 Million Investment in Dutch Subsidiary

Bajaj Auto Ltd has approved an investment of up to Euro 150 million in Bajaj Auto International Holdings BV, Netherlands. This strategic move aims to fund potential investment opportunities, possibly aiding financially challenged KTM AG. The investment, approved by the RBI, emphasizes Bajaj's commitment to global partnerships.

Bajaj Auto Ltd announced on Friday a board-approved investment of up to Euro 150 million in its wholly-owned Dutch arm, Bajaj Auto International Holdings BV. The strategic move is aimed at exploring new investment opportunities, possibly related to its stake increase in troubled KTM AG.

The company stated in a regulatory filing that the investment can take multiple financial forms such as equity, preference capital, or loans. This capital injection, scheduled to roll out by March 31, 2026, seeks to bolster Bajaj Auto's international business interests.

The development comes as Bajaj Auto is deeply intertwined with KTM AG, in which it holds a significant interest. Through its Dutch subsidiary, Bajaj Auto owns 49.9% of Pierer Bajaj AG, which controls a major stake in KTM AG. While KTM's Austrian operations face restructuring, the partnership remains fruitful in co-developing products for Indian and global markets.

(With inputs from agencies.)