Bajaj Auto Seeks Major Control of KTM AG with Cost-Cutting Plan

Bajaj Auto is poised to take control of Austrian bike maker KTM AG, with plans to cut costs by shifting production to India and possibly reducing jobs. The company awaits regulatory approvals to finalize the acquisition. Efforts to improve financial stability and restructure management are underway.

Bajaj Auto is on track to gain majority control over the financially troubled KTM AG, according to a senior official. The auto giant plans to shift more production to India and consider job cuts as part of its cost-reduction strategy.

The Pune-based manufacturer is expected to secure the necessary regulatory approvals by mid-November. Currently, eight out of nine required approvals have been obtained, Bajaj Auto Executive Director Rakesh Sharma informed during a recent earnings call.

Upon regulatory clearance, Bajaj aims to steer KTM towards financial stability by enhancing liquidity and restructuring management. The focus will be on reducing overheads and direct manufacturing costs while ensuring quality remains uncompromised. Production of lower engine capacity bikes may be moved to India, though high-end models are unlikely to be produced there.

(With inputs from agencies.)