The European motorcycle has it more difficult than ever

KTM has dodged the bullet. Or, rather, it has made them extract before bleak. Of being One of the main manufacturers in Europe went on to face a critical financial situation and insurmountable without external help. Factory closures, stop in the production and commitment of a complete restructuring plan to get out of the hole. KTM has been rescued from bankruptcy, although its future is still in the air.

Why is it important. KTM is One of the historical brands in the world of motorcycle. An Austrian with almost a hundred years of history, and a wide presence in the main best -selling segments in the world: trail and naked.

It is one of the few companies with a presence in Moto GPand one of the few European survivors with BMW and Triumph. In a nutshell, losing KTM was losing a European giant.

Where bankruptcy comes from. The KTM crisis It is mainly due to a simple reason: they sold a lot, but They did not earn enough money. It is a company that did not hesitate to make strong investments to grow in emerging markets, development for new models and participation in competitions such as GP.

This ended up translating in motorcycles notably more expensive about its competition. A snowball that resulted in a global reduction in the demand for their motorcycles, overproduction problems (they failed to sell everything they made) and a debt of more than 2,000 million euros.

Safe. As they collect in Motorpasionthe Austrian company has confirmed obtaining the necessary financing to carry out its restructuring plan.

“Piere Mobility Ag and KTM AG have received financing commitments, subject to the execution of the corresponding agreements, which They will guarantee that the fees of the quotas can be fulfilled on time. “

An oxygen ball in the form of 600 million euros that KTM had to deposit to avoid bankruptcy. It is news that It was ahead in February 2025after This plan is approved and be waiting for the deposit.

The person in charge. Although KTM has not directly expressed who is responsible for this economic injection, all eyes are in Bajaj Auto. This Indian giant has 49.9% Piere Bajaj Ag (KTM matrix), and has been injecting millions for more than two years to keep its production line afloat.

Bajaj is also interested in keeping KTM alive. The group is in full expansion in Europe with their own bass motorcycles, and rescuing KTM is a good plan to stay in a privilege position within the motorcycle world.

What happens now. KTM is obliged to meet a restructuring plan. What we still do not know is how they plan to reverse this situation to be a competitive brand again. Adjusting the production to the sales forecast, reviewing the price strategy and focusing on low -cost models aim to be three of the pillars that, or not, will have to start cementing.

Although KTM will continue producing flagship models In Austria, India will be the country of choice for its motorcycles of 125 and 390, at the hands of Bajaj Auto.

The European motorcycle, more and more exception. There are currently only three European brands in the best -selling top 10 motorcycles in April 2025. The first is BMW, which occupies the seventh position. In positions ten -nine, Rieju (Spanish) and Piaggio (Italian).

At the head, the historical Japanese Honda and Yamaha (have been unquestionable leaders in each category for years) … followed by The Chinese, Zontes and Voge. The paradigm shift is clear: China will inevitably conquer the motorcycle market, where the adjusted price has not yet been lost.

India keep pressing. Although the looks are put in China, India has a lot to do in the future of the motorcycle industry in Europe. Bajaj Auto is not only behind KTM, it also produces motorcycles for one of the most prestigious brands in Europe: Triumph. Speed ​​400 and Scrambler 400x are produced in India, in Bajaj plants.

Royal Enfield, who despite his name, has been India for years, has tripled sales in 2024with a very aggressive strategy of prices and balanced models in the middle displacement segments. Two names and two examples of how the future of the European motorcycle happens, less and less, through Europe.

Image | KTM

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