Bajaj Auto to invest up to €150 million in Netherlands arm

In a regulatory filing, the company stated that the board sanctioned the capital infusion, which may be in the form of equity, preference capital, or loans—convertible or otherwise—across multiple tranches as required.

The investment will be made based on fund requirements until March 31, 2026.

BAIH BV, which serves as Bajaj Auto’s investment arm, has obtained the necessary approvals from the Reserve Bank of India for the additional funding.

While the company did not specify the intended investment opportunities, the move comes amid speculation about Bajaj Auto potentially increasing its stake in KTM AG, the Austrian motorcycle manufacturer undergoing judicial restructuring.

Currently, Bajaj Auto, through BAIH BV, holds a 49.9% stake in its associate firm, Pierer Bajaj AG (PBAG) in Austria.

The remaining stake in PBAG is controlled by Pierer Industrie AG. PBAG, in turn, owns nearly 75% of Pierer Mobility AG (PMAG), the parent company of KTM AG.

Beyond equity ownership, Bajaj Auto also collaborates with KTM by developing and manufacturing sub-400cc motorcycles for both domestic and export markets.

While Bajaj Auto manages the business in India, KTM AG oversees exports, with some markets handled by Bajaj Auto.

KTM had previously stated that the judicial restructuring of its parent firm, PMAG, did not affect its partnership with Bajaj Auto for India and select export markets.

However, it impacted operations managed out of Austria, including exports to key regions such as the US and Europe.