Bajaj Auto to Invest ₹1,364 Crore in Netherlands-Based BAIH BV for Expansion

Bajaj Auto has announced a major step in its global expansion strategy by approving an investment of up to €150 million (approximately ₹1,364 crore) in its wholly-owned subsidiary, Bajaj Auto International Holdings BV (BAIH BV), based in the Netherlands.

The investment aims to bolster the subsidiary’s growth and explore new investment opportunities to enhance Bajaj Auto’s international footprint.

Investment Structure and Timeline 

The approval for this capital infusion was granted during Bajaj Auto’s board meeting on Friday. The funds may be deployed in various forms, including equity capital, preference capital, or loans (convertible or non-convertible), based on the requirements of BAIH BV.

The infusion will be executed in one or more tranches and is expected to be completed by March 31, 2026.

BAIH BV’s Role and Growth Focus 

BAIH BV, a 100% subsidiary of Bajaj Auto, primarily focuses on investment activities. With this additional funding, the subsidiary aims to capitalise on emerging investment prospects, reinforcing long-term expansion and strengthening Bajaj Auto’s position in international markets.

Regulatory Approvals and Investment Focus 

Bajaj Auto has already secured all necessary approvals for the investment, including those from the Reserve Bank of India (RBI). While specific investment opportunities were not disclosed in the regulatory filing, the move is closely aligned with Bajaj Auto’s ongoing strategy of increasing its stake in the financially challenged Austrian motorcycle manufacturer, KTM AG.

Bajaj Auto’s Existing Stake in KTM and Future Prospects 

Currently, Bajaj Auto, through BAIH BV, holds a 49.9% stake in Pierer Bajaj AG (PBAG), an associate company based in Austria. PBAG, in turn, owns a controlling 75% stake in Pierer Mobility AG (PMAG), the parent company of KTM AG.

Bajaj Auto has played a crucial role in KTM’s product development, particularly in the under-400cc motorcycle segment, and oversees the Indian market while KTM manages exports to Europe and the U.S.

KTM AG’s Restructuring and Market Impact 

The investment comes in the wake of KTM AG’s judicial restructuring, which primarily affects its Austrian operations and export business. However, Bajaj Auto has clarified that this restructuring will not significantly impact the co-developed motorcycles for the Indian and selected export markets, ensuring continuity in its business strategy and partnerships.

Stock Performance 

On February 21, 2025, Bajaj Auto share price ended 1.44% lower at ₹8,504.55. Bajaj Auto’s share price reached a 52-week high of ₹12,772.15, and a 52-week low of ₹7,892. As per BSE, the total traded volume for the stock stood at 3774 shares with a turnover of ₹3.22 crore.

At the current price, Bajaj Auto shares are trading at a price-to-earnings (P/E) ratio of 29.55x, based on its trailing 12-month earnings per share (EPS) of ₹287.84, and a price-to-book (P/B) ratio of 8.69, according to exchange data.

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