KTM, Europe’s biggest manufacturer of motorcycles by sales, is mulling moving a large part of its production capacity to either India or China, according to company sources. The Austrian company has been in a severe crisis for several months and is facing bankruptcy. To survive and restructure, KTM reportedly needs €600 million in liquidity in the coming weeks.
On January 28, the shareholders of KTM’s parent company Pierer Mobility agreed on a capital increase which might provide the company with up to €900 million in cash, ensuring KTM’s survival for the moment. According to Peter Vogl, the restructuring manager assigned to KTM, the search for investors has been successful. Twenty parties have expressed their interest in investing in the motorbike manufacturer – although he could not say how many had made a concrete offer for some of the new shares.
Even if KTM survives the company will probably move a big chunk of its production capacity outside of Europe to cut costs. This was reported by Austrian media with reference to Pierer Mobility insiders. Reportedly, production is planned to be moved either to Bajaj Auto in India or to CF Moto in China. Bajaj is one of two core investors in KTM together with Heinrich Pierer. Pierer took over KTM in 1991 and turned it into a flourishing company. CF Moto from China is a long-term partner of KTM and a minor shareholder of Pierer Mobility.
This is bad news for KTM’s 5,000 employees in Austria, many of which work in the main production plant in Mattighofen, north of Salzburg. Many people have already been let go as production was switched from double shifts to single shifts for 2025 and 2026.
KTM’s crisis has many roots. Gottfried Neumeister, KTM’s new CEO since January 2025, attributed it to high inventories, rising production costs, complex marketing strategies and high debt. In addition, the ongoing economic crisis in Europe has negatively affected sales. Reportedly, KTM has more than a year’s production volume in store.
https://brusselssignal.eu/2025/01/europes-biggest-motorbike-manufacturer-may-move-production-to-asia