Two and three-wheeler major Bajaj Auto Ltd has increased its stake in Austrian sports bike maker KTM to 25 per cent and is planning to go for more. The Pune-based company had last year announced acquisition of 14.5 per cent stake in the Austrian firm for about Rs 300 crore. It was further increased to 20.9 per cent earlier this year.
Last November, the two companies had entered into a 'wide-ranging cooperation' arrangement besides BAL picking up the 14.5 per cent stake from open market. Under the agreement, the companies planned to jointly develop high-efficiency bikes, sourcing for production and assembling of KTM bikes in India. The jointly developed bikes would be produced at BAL's Chakan facility for export to Europe under KTM branding and the commuter version of the bike on the same platform could be sold in India under the Bajaj badge.