30 November 2024

AMIDST GLOBAL ANNOUNCEMENTS REGARDING PIERER MOBILITY AG, IT IS BUSINESS AS USUAL FOR THE BAJAJ AUTO MANAGED KTM BUSINESS RUN FROM INDIA

Pune, 30th November 2024: Over the last few weeks, there have been multiple announcements regarding the financial situation of Pierer Mobility AG, Austria, more specifically on the far-reaching restructuring and significant additional liquidity requirements at its wholly owned subsidiary KTM AG. In the most recent release of 26th November 2024, given the immediate liquidity constraints, the Executive Board of KTM AG has decided to file an application for the initiation of judicial restructuring proceedings with self-administration over the assets of KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH. All other subsidiaries of KTM AG, in particular all sales companies, are not affected. The aim of the proceedings is to agree a reorganization plan with the creditors within 90 days. It is envisaged that re-dimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding.

By way of a background, Bajaj Auto Limited has a wholly owned subsidiary in Netherlands called Bajaj Auto International Holdings BV (BAIHBV). BAIHBV holds a 49.9% stake in its associate, i.e., Pierer Bajaj AG (PBAG) in Austria. The remaining controlling stake in PBAG is held by Pierer Industrie AG. PBAG holds a nearly 75% stake in its subsidiary, Pierer Mobility AG (PMAG). PMAG is the holding company of KTM AG, Europe’s leading manufacturer of powered two-wheelers, producing a full range of premium brands including KTM, GASGAS, Husqvarna and MV Agusta Motorcycles. KTM AG is a wholly owned subsidiary of PMAG. Apart from being a part equity owner, Bajaj Auto is also a strategic partner for KTM as it develops and manufactures products (under 400cc) for India and export to overseas markets. The business in India is managed by Bajaj Auto whereas export geographies are managed mostly by KTM AG and partly by Bajaj Auto.

It is to be noted that the aforesaid matter has a bearing on the business of Pierer Mobility AG / KTM AG that is run out of Austria. While these developments are impacting the export volumes (from Austria, India and China) to its key markets in the US and Europe, the KTM business that is run out of India (domestic, select export markets) for which products are co-developed by KTM & Bajaj and manufactured and sold by Bajaj Auto continues to operate in the normal course during this period.

The KTM and Husqvarna brands are of strategic importance and constitute an important part of Bajaj Auto's premium motorcycles business in India. Having registered its highest ever volumes sold under these brands in the country in the last financial year, Bajaj Auto remains strongly committed to the sustained growth of this business and working closely with its channel partners to bring the best of sports motorcycling to delight its customers across the country.

About KTM India

True to its “Ready to Race” philosophy, KTM has an unparalleled legacy in motorsports, with over 334+ world championships since 1953, winning the Dakar Rally for the 19th time in 2023. Since its entry in 2012, KTM India has grown its presence to more than 450 stores across the country. KTM has built a strong customer base of nearly half a million biking enthusiasts, making India the largest global market for KTM. The partnership of Bajaj Auto Limited and KTM was inked in 2007, with Bajaj Auto Limited now owning a significant stake in KTM AG.

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