16 hours Ago By Badar Shaikh
Austrian motorbike company KTM is sitting on an unsold inventory of over 265,000 motorbikes. The brand, which is a household name in the motorcycle community, seems to be grappling with serious financial troubles in the recent past that has seen it undergo financial restructuring, employee layoffs as well as an uncertain future of its motorsport exploits; an area in which it enjoys a rich legacy. According to several reports in the media, the brand owes its creditors over $3 billion.
Also Read: What the Honda-Nissan merger could mean for the auto industry KTM had seen an uptake in sales figures in 2023 worldwide, which resulted in the manufacturer ramping up its production efforts. The demand, however, levelled off and even decreased, leaving KTM in a precarious situation with over 265,000 unsold units collecting dust in various warehouses. According to the German newspaper Der Standard , lawyers at the creditors meeting in the insolvency court cited numerous management errors as one of the reasons behind this situation.
Since June, I've heard stories of KTM group (Pierer Mobility) failing to meet aggressive sales targets, unsold bikes, and financial stresses. Tried to get interviews but requests haven't been answered. Today a restructuring announcement: https://t.
co/kja1wiTKmd — Jason Weigandt (@JasonWeigandt) November 26, 2024 KTM is owned by parent company Pierer mobility as well as Indian motorcycle manufacturer Bajaj Auto. Over the years, the brand has enjoyed popularity not just in Europe but also the global south in markets like India as well as the Americas. The current situation also puts KTM's motorsport ambitions into jeopardy with there being rumors of a potential exit from MotoGP — the highest class of motorcycle racing in the world, comparable to Formula 1.
KTM were in insolvency court today, and one of the planned cost cutting steps is the planned withdrawal from MotoGP, Moto2 and Moto3. HOWEVER, according to the team, this isn’t planned for 2025, and they insist that they will race this coming season. pic.
twitter.com/4hfkhg4sa1 — Simon Patterson (@denkmit) December 20, 2024 KTM's parent company Pierer Mobility also owns Swedish motorcycle brand Husqvarna, off-road motorcycle brand GasGas, and the recently acquired Italian brand MV Augusta. Reports in the media also suggest there's growing pressure on Stefan Pierer to call it a day as the brand desperately tries to stave off insolvency.
As Pierer Mobility looks towards an uncertain future and seeks an influx in cash, this could pave the way for Bajaj Auto to acquire a larger stake in the company and become the major shareholder. #KTM will return to the EICMA motorcycle show for the first time in 5 years and it is coming in all guns blazing, with the he next-gen 390 Adventure R, 390 Enduro R, 390 SMC R and more. Tap below for all the details: https://t.
co/nkscwQPA7g — Autocar India (@autocarindiamag) October 2, 2024 KTM recently revealed a host of new motorbikes at the annual EICMA in Milan. The range included the likes of the popular 990 RC R, a host of adventure motorcycles as well as the Enduro off-road motorbikes. It's also worth noting the brand made a comeback to the motor show after a 5 year absence.
KTM also recently introduced its high-end motorcycles in India, which is one of the biggest motorcycles markets in the world right now. Also Read: Abu Dhabi's CYVN now owns McLaren, here's how it happened.
