Bajaj Auto’s KTM AG Repays €450 Million Loan After New Refinancing Deal

By Jony Shekhawat | Published Date : March 06, 2026

KTM closes earlier Bajaj loan after securing fresh €550 million refinancing from a global banking consortium.

Austrian motorcycle company KTM AG has repaid the €450 million loan it had taken from Bajaj Auto International Holdings BV. This step closes the earlier financing deal between the two companies.

In a regulatory filing on Wednesday, Bajaj Auto Ltd said its step-down subsidiary KTM AG has paid the full outstanding amount. After this repayment, the loan agreement officially ended on March 5, 2026.

Fresh €550 Million Loan Arranged

Table of Contents

1. Fresh €550 Million Loan Arranged

2. Terms of the New Loan

3. Bajaj’s Support During Financial Trouble

4. Job Cuts Announced to Reduce Costs

5. Group Focuses on Core Motorcycle Brands

6. Sales Fell During Restructuring Phase

Read More: Electric Buses Transforming India’s Public Transport System

The repayment happened soon after KTM arranged a new refinancing loan worth €550 million. The fresh loan has been raised from a group of international banks. This new funding will replace the earlier debt. It will also give the company some financial relief as it continues its restructuring efforts. The banking group includes DBS Bank Ltd, J.P. Morgan SE, HSBC and MUFG Bank Ltd.

Terms of the New Loan

The refinancing loan is unsecured and its tenure is five years. The interest rate will remain in the low to mid single-digit range. KTM will also have to follow some standard financial conditions during this period. One of these conditions limits dividend payouts while the loan remains active. KTM is a well-known bike manufacturing company and Bajaj has started its interest in electric 3-wheelers.

Bajaj’s Support During Financial Trouble

The €450 million loan was extended in May 2025 because KTM AG was suffering from hard financial problems at that time. A few months later things moved further. In November 2025, Bajaj Auto Ltd decided to take a bigger role in the company and acquired a controlling stake in KTM. Along with this move Bajaj also announced a financial support package of nearly €800 million. The idea was simple. Help KTM meet its restructuring obligations and make sure the company could avoid slipping into insolvency.

Job Cuts Announced to Reduce Costs

KTM is trying to save money. The firing of employees became essential for the company to retrieve its lost position. In January 2026 KTM will cut around 500 jobs. The number of people working for KTM was already going down. By December 31 2025 KTM had 3,794 employees. The year, before that KTM had a lot of people working for them. 5,310 Employees.

Group Focuses on Core Motorcycle Brands

The group is also reshaping its business. Its parent company Bajaj Mobility AG has sold some non-core businesses to focus on motorcycles. However, Bajaj is still active in 3-wheelers. This includes the sale of FELT Bicycles and the end of its distribution partnership with CFMOTO. The group has also divested stakes in MV Agusta and the KTM X-Bow project.

The company will focus mainly on its core brands in the future. These are KTM, GASGAS and Husqvarna Motorcycles.

Sales Fell During Restructuring Phase

The restructuring process has affected KTM’s business performance. In FY25 KTM AG reported sales of over 1 billion euros. This was 46% down, from the year before. Still the management thinks things can get better. With a refinancing plan and ongoing restructuring KTM AG expects its business to slowly get back on track in the next few years.

Also Read: Sakhi Auto Services: Empowering Women’s Mobility in Bengaluru

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Frequently Asked Questions on Commercial Vehicles

Q1. What engine type is commonly used in KTM performance motorcycles?

Ans. Most KTM motorcycles use high-performance liquid-cooled single-cylinder or parallel-twin engines designed for strong power delivery and efficiency.

Q2. What is the typical mileage of KTM street motorcycles?

Ans. Depending on the model and engine size, KTM motorcycles usually deliver mileage ranging between 25 km/l and 40 km/l under normal riding conditions.

Q3. What is the usual seating capacity of KTM bikes?

Ans. Most KTM street motorcycles are designed with a two-seat configuration suitable for a rider and one passenger.

Q4. What is the approximate body length of KTM street bikes?

Ans. The body length of most KTM street motorcycles generally ranges between 1,990 mm and 2,150 mm, depending on the model and segment.

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