After over a year of turbulence, Pierer Mobility AG and KTM seem to have finally found solid ground. On Thursday, Pierer announced they and Bajaj Auto have reached a call option agreement, enabling the latter to provide much-needed funding and acquiring a stake in the company.

The unified effort is known as Pierer Bajaj AG. Pierer will hold 50.1% stake in it while the remaining 49.9% is held by Bajaj Auto International Holdings BV. The agreement runs through the end of May 2026.

Bajaj has also provided a €600 million infusion to help keep KTM afloat, joining the €200 million already available.

Pierer is the owner of brands like KTM, GasGas, and Husqvarna. Since 2023, the parent company has struggled with debt and other monetary snags, forcing Pierer to sell off MV Agusta in February. A restructured budget also prompted Pierer to consolidate its three rally raid divisions into KTM. GasGas, Husqvarna, and KTM also did not register for the 2024 World Rally-Raid Championship due to the financial situation despite Husqvarna winning the 2023 title with Luciano Benavides.

The crisis also forced KTM to end its title sponsorship of the FIM Hard Enduro World Championship, which left the series on the brink of cancellation for 2025 until a new promoter was found.

Despite the turmoil, KTM has continued to enjoy success in rally raid. Daniel Sanders has won both W2RC rounds so far in 2025, including the Dakar Rally, and currently leads the South African Safari Rally.

“The existing sites, in particular our main plant in Mattighofen/Munderfing, will remain the basis for our future success,” said KTM CEO Gottfried Neumeister. “This means that we will continue to be an important employer for the entire region. In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible.

“I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world’s best-known motorcycle brands, which has a unique community.”

Bajaj is an Indian manufacturer of motorcycles, auto rickshaws, and low-cast cars.

Featured image credit: Kin Marcin / Red Bull Content Pool