In a fresh lease of life, KTM will hopefully restart its operations in Europe. The Austrian has been witnessing a financial crunch for a very long time with sales plummeting across the world. Last month, Bajaj Auto, KTM’s India partner, stepped in to rescue the struggling Austrian motorcycle brand by offering to acquire a majority stake in the latter.
Underlining its commitment to its long-term partnership with KTM, Bajaj Auto, through its wholly owned subsidiary Bajaj Auto International Holdings BV (BAIHBV), announced last month its intentions to take control of the KTM. Last month, BAIHBV secured a debt financing package worth €800 million (approximately Rs 7,765 crore).
KTM entered self-administration late last year, but this latest development marks a significant turning point for the company. With the court officially concluding KTM’s restructuring process, the company is now preparing to restart production of motorcycles, spare parts, accessories, and apparel across all its manufacturing sites.
Gottfried Neumeister, the newly appointed CEO of Pierer Mobility AG, stated: “I am relieved and grateful that we have finally closed this challenging chapter. Our priority now is to ramp up production by the end of July and reposition the group for the future.”
In the coming months, Bajaj is set to become KTM’s majority shareholder. While the iconic KTM brand will endure, it’s clear that the company faces a long path to full recovery, and significant changes in its operations are expected.
KTM difficulties in Europe
Once the largest motorcycle manufacturer in Europe, KTM temporarily halted production at its main plant in Mattighofen, Austria. In 2023, over 210,000 motorcycles were produced at this facility, with a total of over 380,000 motorcycles produced across all KTM’s European facilities. The production halt was extended due to shortage of supply of critical components.
More recently, KTM stopped the distribution of CFMoto and its EV sub-brand Zeeho two-wheelers in the countries like Austria, Germany, UK, Spain and Switzerland, from 1 June 2025 onwards. Since 2013, KTM has been distributing CFMoto and Zeeho two-wheelers in these markets. The decision to end this arrangement is described as ‘mutual’, though the manufacturing partnership between the two companies will remain unchanged.
Source: Autocar India
