Bajaj Auto to Invest ₹1,364 Crore in Dutch Subsidiary for Global Expansion

24 Feb 2025 , 11:27 AM

Bajaj Auto Ltd. has approved an investment of not exceeding €150 million (₹1,364 crore) in its wholly-owned subsidiary Bajaj Auto International Holdings BV (BAIH BV) in the Netherlands.

The investment will help facilitate BAIH BV’s international expansion, growth initiatives and to identify new investment opportunities. Approval was given at the company’s board meeting on Friday.

The investment can be in the form of equity capital, preference capital, or loans (convertible or non-convertible). The funds shall be released over several tranches depending on the cash flow requirements of BAIH BV. The deal is slated to close no later than March 31, 2026.

BAIH BV is the global investment arm of Bajaj Auto that makes new strategic expansion and acquisitions. It has obtained all necessary regulatory approvals required to carry out this overseas investment, including the Reserve Bank of India (RBI). The investment fits the bill of Bajaj Auto’s recently announced plan to raise its stake in financially ailing Austrian bikemaker KTM AG.

At present, Bajaj Auto has a single 49.9% stake in Pierer Bajaj AG (PBAG), an Austrian associate company through BAIH BV. PBAG, in turn, holds a 75% ownership stake in Pierer Mobility AG (PMAG), the parent company of KTM AG. Bajaj Auto’s close association with KTM’s product development, especially in the sub-400cc space.

While the company produces KTM motorcycles in India, export to Europe and the U.S. are managed by KTM. And the investment comes at a time KTM AG has been restructured through the Austrian courts, affecting operations within Austria and exports to other markets.

Bajaj Auto added that the revamp will be unaffected with the company’s India related business or its global product collaborations. The shift is aligned with Bajaj Auto consolidating its global presence and boosting its footprint in the global two-wheeler market.