KTM’s future in MotoGP was uncertain due to severe financial difficulties that saw the Austrian manufacturer accumulate nearly 3 billion euros in debt. These problems arose amid declining revenues and issues with overproduction that left large amounts of unsold inventory. In response, KTM underwent a major restructuring effort involving factory closures and large-scale layoffs. By November 2024, the company had entered insolvency proceedings while negotiating to repay only 30% of its owed debt to creditors.
Bajaj Auto Steps In as Majority Shareholder to Rescue KTM
The turning point came when Bajaj Auto emerged as KTM’s majority shareholder, initiating a gradual acquisition process expected to conclude by 2026. This transition marks a new chapter for the Austrian brand under Indian ownership. Early statements from Bajaj sought to reassure stakeholders that KTM’s sporting division would remain intact, although doubts lingered about the continuation of its MotoGP program under new leadership.
Bajaj Officially Confirms Continuation of KTM’s MotoGP Participation
This uncertainty ended when Bajaj Auto officially declared its commitment to maintaining KTM’s presence in MotoGP. This announcement guarantees the continuation of the brand’s participation at the highest level of motorcycle racing. Bajaj’s involvement not only resolves KTM’s immediate financial emergency but also establishes a foundation for sustainable management and funding across all KTM operations, including competitive motorsport.
Strategic Alliance Ensures Long-Term Stability and Market Presence
The partnership between Bajaj and KTM represents a critical corporate rescue that preserves business continuity, brings in fresh capital, and introduces stable leadership to one of the motorcycle industry’s recognized manufacturers. This alliance secures KTM’s global footprint, reassures dealers with forthcoming new models, and solidifies the company’s ability to stay competitive in world markets. The KTM brand now has a stable path forward within a global framework led by Bajaj Auto, which promises to uphold KTM’s racing heritage and commercial success.
Our Reader’s Queries
Q. Why is MotoGP not so popular?
A. Unfortunately, entertainment attracts more attention than sports, so MotoGP is trying to benefit from this trend. However, MotoGP currently lacks personalities who can make it exciting.
Q. Has anyone won F1 and MotoGP?
A. John Surtees is known for being the sole World Champion in both motorcycle and Formula 1 racing. He excelled in both sports with skill and courage.
Q. Did F1 buy MotoGP?
A. With F1 and MotoGP now managed by the same company, Liberty oversees two top global racing series. This change affects how they will be governed, how they compete, and their business plans. Although the EU has given its approval, there are concerns about whether this might lead to a monopoly in the industry.
Q. Who earns more, MotoGP or F1?
A. Formula 1 generates significantly more revenue compared to MotoGP. This difference isn’t related to the skills or risks of the drivers and riders.
