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The approval was granted during the company’s board meeting on Friday, and the investment may be allocated in various forms such as equity capital, preference capital, or loans (convertible or non-convertible), depending on the needs of BAIH BV. The capital infusion will be conducted in one or more tranches, as per the fund requirements, and is set to be completed by March 31, 2026.
BAIH BV, a 100% subsidiary of Bajaj Auto, specialises in investment activities. This additional capital infusion aims to enable the subsidiary to seize emerging investment opportunities, ensuring long-term growth and strengthening Bajaj Auto’s international footprint.
The necessary approvals for this investment, including those from the Reserve Bank of India (RBI), have already been secured. While the exact investment opportunities were not detailed in the filing, the timing aligns with Bajaj Auto’s ongoing strategic focus on increasing its stake in the financially stressed Austrian bikemaker, KTM AG.
Currently, Bajaj Auto, through BAIH BV, holds a 49.9% stake in Pierer Bajaj AG (PBAG), an associate company in Austria. PBAG, in turn, holds a majority 75% stake in Pierer Mobility AG (PMAG), the parent company of KTM AG. Bajaj Auto has been instrumental in KTM’s product development, particularly in the under-400cc category, and plays a key role in managing the Indian market while KTM oversees exports to Europe and the U.S.
The development follows KTM AG’s judicial restructuring, which primarily affects its operations in Austria and exports, with no significant impact on co-developed products for India and select export markets.
(Edited by : Ajay Vaishnav)
