MotoGP 2025: A first look at the KTM-Bajaj partnership and how it can fuel future success
- Aaratrika Gupta
- Jun 6
- 3 min read
Written by Aaratrika Gupta, Edited by Gabriel Tsui
Bajaj Auto is now a shareholder with a 49.9% stake in Pierer Bajaj AG, which owns most of KTM’s parent company, Pierer Mobility AG. Their move has set Bajaj as the main guide leading KTM, Husqvarna and GASGAS, all part of Pierer Mobility.
The result is a partnership that gives Bajaj significant influence over strategic decisions while maintaining the European identity and performance legacy that KTM is known for.
“This step ensures long-term stability for Pierer Mobility AG,” KTM stated in an official release, adding that the alliance allows both companies to “leverage their individual strengths in global R&D, production, and distribution.”
KTM CEO Stefan Pierer emphasized the significance of the partnership in securing a long-term future for the brand amid the shifting dynamics of the motorcycle and motorsport industries. “This is not just a financial partnership, it is a strategic consolidation that provides us with stability and a common path forward.”
Shared vision, expanded footprint
The partnership aims to bring together Bajaj’s scale and cost-effective manufacturing expertise with KTM’s engineering prowess and racing pedigree. Bajaj has been producing small and mid-capacity KTM models (125cc–390cc) for global markets at its Chakan plant in India since 2007.
With this new deal, Bajaj will now also play a more central role in production and development, including potentially supporting larger-capacity models.
Speaking to Livemint, Rakesh Sharma, Executive Director of Bajaj Auto, noted: “We have been in partnership for over 15 years, and this new structure reflects the maturity of that relationship and our shared intent to evolve as global mobility leaders.”
The synergy is expected to drive both R&D and production innovation. With KTM focusing on electrification, alternative fuels, and cutting-edge MotoGP technology, Bajaj’s cost-efficient production base and expanding infrastructure could help bring KTM’s race-developed technologies to mass-market models faster and more affordably.
The MotoGP angle: what this means for the track
While KTM has made strong gains in MotoGP in recent years — with multiple podiums, victories, and an ever-growing presence in both the premier class and feeder series — sustaining that success in the ultra-competitive paddock requires deep pockets and consistent innovation.
Why the Bajaj investment could be a game-changer
Because of greater financial and resource support, KTM’s racing department can now attempt various improvements, test them and integrate upgrades that improve performance. All of this covers developing the engine, working on aerodynamics and using data carefully — key parts of success in modern MotoGP.
Besides, KTM’s investments into youth and satellite teams are protected by the deal, focussing on the Tech3 GASGAS squad and Red Bull KTM Ajo squads in Moto2 and Moto3. The duo’s objective is to grow talent at every stage, from beginners to the grid, to create a lasting racing legacy, instead of focusing solely on the current season.
A financial safety net for innovation
In a volatile economic landscape where manufacturers are cutting back on racing programs, KTM’s ability to secure nearly €1 billion in liquidity is a powerful buffer. As noted by NZ Autocar, “This massive refinancing means Pierer Mobility is now debt-free — and that’s a rarity in this space.”
With debt eliminated and Bajaj fully backing the brand’s direction, KTM can now double down on innovation without being hamstrung by financial uncertainty. Expect more aggressive development cycles, closer collaboration between racing and road departments, and faster tech trickle-down from the track to consumer models.
First look: Silverstone 2025
We got our first visual taste of this next chapter at Silverstone, as the KTM RC16 machines rolled out with subtle but significant branding updates — most notably, the Bajaj logo was featured alongside the familiar Red Bull and Pierer Mobility graphics.
While the livery changes were modest, the symbolism was loud and clear: KTM is no longer just an Austrian underdog with Red Bull firepower. It's now the flagship brand of a robust, Indo-European motorsport powerhouse.
A new era begins
With Bajaj’s deeper involvement, KTM is equipped with more than just a refined machine — it enters with vision, capital, and stability. This partnership brings together two titans from different corners of the world, united by racing spirit and business savvy.
From the Chakan production lines to the apex of Silverstone, the KTM-Bajaj alliance may well become one of the defining stories of this MotoGP era.
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