Bajaj seeks to script KTM revival as domestic market share slips

Bajaj Auto Ltd is crafting a turnaround for KTM, its biggest acquisition, to boost profitability even as it loses market share in its home market.

- Ayaan Kartik

Pune-based Bajaj Auto will look to discontinue smaller brands under KTM, rejig core operations and unlock synergies between the supply chains of Bajaj and KTM to reduce costs, the management said during the earnings call and meetings with analysts.

"After the KTM acquisition, Bajaj Auto would now focus on the restructuring of the core operations. They would also look to leverage synergy benefits in manufacturing operations, the supply chain, and the distribution network," analysts at Motilal Oswal wrote in a 15 December note after meeting Bajaj Auto's leadership team.

A revival plan for KTM is aimed at bolstering its premium offerings, as its exports remain profitable, while India's fourth-largest two-wheeler maker’s domestic market share continues to decline.

Bajaj Auto acquired struggling motorcycle maker KTM for about €800 million. The management told analysts that the company is looking to exit the bicycle, car and other smaller brands to focus on the KTM and Husqvarna motorcycles. Efforts will begin in earnest in the first half of calendar year 2026, the company said.

KTM has a sports car brand KTM X-Bow.