The KTM group, a pillar of the motorcycle industry and a key player in international competitions, is going through a critical period. In the grip of an unprecedented economic and sporting crisis, the Austrian manufacturer is seeking solutions to maintain its business, preserve its heritage and reassure its partners. A new year, a new lease of life? We take stock.
KTM Group: chilling figures
With over 3 billion euros in debts and a record 265,000 unsold motorcycles, KTM is facing a chaotic management of its resources. This overproduction, highlighted during the insolvency hearings, has been described as a"strategic error" by some experts. The weight of unsold products is further weakening a structure already weakened by falling demand in several key markets.
To contain this crisis, KTM has embarked on a judicial reorganization process. Among the avenues being explored, a property deal is expected to raise 35 million euros, while discussions with three major investors, including Bajaj, already a major shareholder, could lead to an injection of 700 million euros. Final decisions on these proposals are expected in January.
Despite these efforts, mass redundancies are envisaged. In Mattighofen, KTM's emblematic headquarters, this figure, initially estimated at 500 jobs, could be reduced to 300. However, increased relocation to low-wage countries such as India and China is also under consideration, a measure that could profoundly transform the brand's identity.
Stefan Pierer and Gottfried Neumeister, KTM Managing Directors:
The most important thing is to keep as many jobs as possible. In this context, we are looking for new investors and trying to find a sustainable solution with our creditors. We are having good discussions with the banks in particular.
KTM in MotoGP: a fresh start or a race against time?
Since entering MotoGP in 2017, KTM has established itself as a serious rival, challenging Ducati, Aprilia and other giants. But the economic crisis is having an impact on its sporting ambitions.
Development of the RC16, the brand's official motorcycle, has been frozen to cut costs. However, some limited tests were maintained, such as the one organized in Jerez. Despite this, persistent rumors point to a complete withdrawal from MotoGP in 2026, when the contracts of official riders Pedro Acosta and Brad Binder (main photo), as well as that of the French Tech3 team, expire.
Withdrawal would save around 46 million euros, a substantial sum but insufficient to solve the overall crisis. This departure would come as a shock to MotoGP. Within the category, Fabio Di Giannantonio, future rider of the VR46 team, understands this possibility: "Losing KTM would be a huge loss for the championship and for our sport. Having several manufacturers competing stimulates the passion of fans and strengthens the appeal of MotoGP."
Pedro Acosta, the official team's new piilote in 2025, is reassuring:
The situation at KTM doesn't affect us. I'm sure they'll find a solution.
2025 is a pivotal year for the KTM group. For a rider of Acosta's calibre, on the other hand, a breach of contract would attract offers from other manufacturers...
To counter the prevailing gloom, KTM is banking on its communication and its history. In a promotional video entitled "Growing stronger - KTM is here to stay", the manufacturer celebrates its sporting successes. This message of optimism aims to rekindle pride in the KTM community and boost investor confidence.
But this effort is coming up against recurring criticism. In the comments to this video, many Internet users point to recurring machine reliability problems and disappointing after-sales service. These grievances add to the pressure on the brand, which has to find a balance between economic restructuring and maintaining its reputation.
KTM faces its challenges: what are the options for bouncing back?
Several hypotheses are circulating concerning KTM's future:
The role of Bajaj and investors
Bajaj could increase its involvement in KTM, injecting the funds needed to stabilize the company. This is the most plausible option at present, and is reinforced by the historical links between the two entities.
A rescue by Red Bull
Heinz Kinigadner, a close associate of Red Bull and a historic figure in motocross, could orchestrate an intervention by the energy drink giant. This scenario would preserve KTM's sporting image, strongly associated with Red Bull in competition.
A gradual withdrawal from track racing
If no financial rescue materializes, KTM could gradually withdraw from MotoGP, as reported by the Austrian daily Der Standard.
More than anything else, this would undermine KTM's position as an innovator and reduce the brand's global exposure. As the company fights for its economic survival, it must also preserve its heritage and DNA. The Austrian automaker has built its reputation on performance, innovation and sporting commitment, but these pillars are now under threat. So much so that the very idea of Lewis Hamilton, now with Ferrari in F1, no longer comes as a surprise.
The brand, known from Los Angeles to Sydney, as its directors emphasize, must find a way to reconcile economic restructuring and ambition. And time is not on its side...
Photo credits: Rob Gray / Polarity Photo
