Bajaj Auto open for a strategic partner for KTM; plans 10 new models, EV expansion

Bajaj Auto on y Tuesday said it is open to a strategic partner for KTM if the partner’s vision is aligned with the global motorcycle brand, Executive Director Rakesh Sharma said during a post-results interaction with the media.

On KTM he said had returned to EBITDA break-even after several difficult quarters. In the domestic market, Bajaj Auto plans to launch 10 new or upgraded motorcycles, expand its electric-vehicle portfolio and raise annual capacity in India by more than 25 per cent.

The strategy follows a record first quarter for Bajaj Auto, but supply-chain disruptions and capacity constraints prevented it from fully meeting demand for exports, electric vehicles, higher-capacity motorcycles and selected three-wheelers.

Bajaj Auto took effective control of KTM in November 2025 after its Netherlands-based subsidiary completed the acquisition of Pierer Bajaj AG for €800 million. The transaction gave Bajaj Auto an effective 74.9 per cent controlling stake in Pierer Mobility AG and KTM AG, making KTM a step-down subsidiary.

Sharma said KTM continues to operate independently and is not being integrated into Bajaj Auto. Bajaj has injected liquidity, supported the appointment of new leadership and helped improve sourcing from more competitive locations, including India.

“It has broken even at EBITDA, and now it will keep going progressively,” Sharma said, adding that KTM would continue working to improve its topline and bottomline.

Bajaj Auto may consider a strategic partner if an investor’s vision and strategy are aligned with KTM. However, Sharma said the company was not actively looking for one.

“If there is a strategic partner whose vision and strategy is aligned with KTM, that opportunity is always worth considering. But it is not as if there is a hunt on for somebody to come in and participate,” he said.

Bajaj Auto will raise annual production capacity from 7.11 million units, or 71.1 lakh units, to more than nine million units over the next few quarters. This represents an expansion of more than 25 per cent as demand grows for EVs, exports, higher-capacity motorcycles and selected three-wheelers.

“We are at the capacity limit and that is why the capacity expansion is being undertaken,” Sharma said. The expansion will cover Bajaj Auto’s plants and its supplier ecosystem. Vendors supplying batteries, electronics, magnets and other components will also have to increase capacity in tandem.

Bajaj Auto’s record Q1 performance came despite inflation, supply-chain disruptions and logistics problems in international markets. Sharma estimated that availability was impaired by 10-15 per cent during the quarter.

“If everything was normal, we could have been 10 to 15 per cent more than what we achieved,” he said, adding that quarterly volumes could have crossed 1.5 million units.

Bajaj Auto has upgraded around eight motorcycle models since November-December, particularly in the 150-160cc segment. Sharma said growth in the segment during Q4 and Q1 was around 1.5 times the industry’s growth, based on vehicle registrations.

Over the next six weeks, Bajaj Auto plans to introduce around 10 additional models, including new motorcycles in the 125cc and 150-160cc categories. The new models will be rolled out from August, with a completely new and upgraded portfolio expected by the festive season.

The refreshed range is intended to extend Bajaj Auto’s market-share gains in the upper half of the motorcycle industry, where demand is growing faster than the overall market.

Bajaj Auto is targeting the number-one position in electric two-wheelers after emerging as the second-largest player in Q1.

“We want the leadership position, but it’s not going to be at the cost of compromising the bottom line,” Sharma said. Bajaj Auto now has 12 EV models. Electric vehicles account for about 24 per cent of industry scooter sales and 45 per cent of three-wheeler sales, Sharma said, with operating economics and regulatory support expected to a...