Austrian motorcycle manufacturer and motorsports brand, KTM AG, is navigating through turbulent waters as it undergoes a restructuring process. The company has confirmed that CEO Stefan Pierer will hand over leadership to board member Gottfried Neumeister. In November 2024, KTM initiated a ‘self-administration’ process under Austrian law after Pierer Mobility AG saw its share prices hit new lows over the past two years. In a bid to avoid bankruptcy and prevent a dramatic fall from grace, the company will now be led by Neumeister, while Pierer will remain as co-CEO. Let’s take a look back at how Europe’s largest two-wheeler company reached this crossroads.
KTM: Riches to Survival Saga
Just as Red Bull has become the undisputed energy drink in the world of sports, KTM, with its iconic orange livery, carved out its own maverick identity in the two-wheeler world. Their mantra was simple yet powerful — regardless of the segment, KTM would deliver high-performance bikes packed with cutting-edge technology—at an affordable price.
Since Stefan Pierer took the reins of the Austrian brand in 1992, he transformed KTM from a local player into a global cult sensation. However, the post-COVID era has proven challenging, with KTM’s financial strength taking a series of hard hits. Riding high on early successes, KTM scaled up production, but the market’s demand didn’t follow suit, resulting in a surplus of bikes. By 2023, the company faced plummeting revenues, soaring production costs, and excess inventory, forcing KTM into a deep restructuring phase. The company slashed production by 40 per cent and made the tough decision to lay off around 1,800 employees, marking a dramatic turn in its journey.
KTM: Drops MV Agusta from its portfolio
In 2024, KTM proudly snapped up a 50.1 per cent majority share of MV Agusta, but just like that one relationship that seemed perfect at first, the honeymoon phase quickly soured. Faced with a financial crisis, the Austrian giant had to break up with the Italian brand, and by December of the same year, MV Agusta was officially flying solo again, proudly declaring its independence from KTM.
The Italian marque is doing just fine, with 60 per cent of its management still on board and showing solid performance over the last two years. Meanwhile, KTM is still happily holding on to Husqvarna and GasGas.
KTM: Potential Suitors
It seems like KTM is turning into the hottest property on the block, with investment groups and rival two-wheeler brands lining up to take the wheel. Word on the street is that Citigroup might be eyeing a 30 per cent stake from Pierer.
For Bajaj Auto, this could be a golden opportunity to bump up its stake in Pierer Mobility, considering it already has a massive production setup for KTM bikes like the 125cc, 200cc, 250cc, and 390cc. It’s basically a long-standing partnership, where Bajaj manufactures single-cylinder motorcycles while KTM focuses on the parallel twins.
Meanwhile, CF Moto in China, which has a cozy little arrangement with KTM to make the 790 parallel twins, could also be in the running as a potential investor.
