KTM AG has officially restarted full-scale production at its Mattighofen plant in Austria, signaling a significant turnaround after months of financial difficulty and a crucial rescue by Bajaj Auto.
KTM’s Journey Through Turmoil
The renowned motorcycle manufacturer faced severe financial strain in late 2024, leading to a period of self-administration due to mounting debt. This challenging phase put a halt to production and created uncertainty for the brand.
In early 2025, Bajaj Auto stepped in with a definitive plan to take over KTM. This pivotal move included securing a substantial loan of EUR 566 million (approximately Rs 5,445 crore) through its European subsidiary. This financial injection was critical, providing KTM with the necessary capital to navigate through mid-2025.
Despite a brief restart in March, KTM had to pause production again in late April. This second halt, after manufacturing only 4,200 motorcycles, was attributed to critical parts shortages. Suppliers were hesitant due to ongoing insolvency proceedings, highlighting the deep-seated mistrust that had developed.
Back on Track: Production Resumes
Focus on New Models and Stability
With a successful restructuring complete and creditor agreements in place, the path was cleared for a full return. The restart at Austrian production sites was formally confirmed for late July 2025.
Production officially resumed on July 28, 2025, at the Mattighofen facility. The plant is now operating on a five-day, single-shift schedule, a carefully managed approach to ensure smooth operations and efficient output.
The initial focus is on KTM’s upcoming 2026 off-road portfolio, including the popular EXC, SX, and XC models. Additionally, production has recommenced for LC4 motorcycles, such as the 690 Enduro-R and 690 SMC-R, catering to a diverse range of riders.
A Global Impact and Future Outlook
While the immediate restart is concentrated on the Austrian facilities, this development holds significant implications for KTM’s global operations. It signifies a return to stability and renewed confidence for the brand worldwide.
For India, which stands as KTM’s second-largest market, this production reboot brings reassurance of continuity. Current models like the Duke and Adventure series are manufactured by Bajaj at their Chakan plant in India.
The return to full production in Austria provides a solid foundation for KTM’s global supply chain and future product availability. It remains to be seen how quickly some of these freshly built Austrian models might make their way into the Indian market, further expanding the brand’s presence there.
- KTM has restarted full-scale production at its Mattighofen plant in Austria.
- Bajaj Auto’s financial support, including a EUR 566 million loan, was crucial for the recovery.
- Production is initially focusing on 2026 off-road models and the LC4 range.
- The plant is operating on a five-day, single-shift schedule.
- This restart signals renewed stability and confidence for KTM’s global operations.
This restart marks a pivotal moment for KTM, allowing the company to move forward and focus on innovation and growth in the global motorcycle market.
KTM AG has officially restarted full-scale production at its Mattighofen plant in Austria, signaling a significant turnaround after months of financial difficulty and a crucial rescue by Bajaj Auto.
KTM’s Journey Through Turmoil
The renowned motorcycle manufacturer faced severe financial strain in late 2024, leading to a period of self-administration due to mounting debt. This challenging phase put a halt to production and created uncertainty for the brand.
In early 2025, Bajaj Auto stepped in with a definitive plan to take over KTM. This pivotal move included securing a substantial loan of EUR 566 million (approximately Rs 5,445 crore) through its European subsidiary. This financial injection was critical, providing KTM with the necessary capital to navigate through mid-2025.
Despite a brief restart in March, KTM had to pause production again in late April. This second halt, after manufacturing only 4,200 motorcycles, was attributed to critical parts shortages. Suppliers were hesitant due to ongoing insolvency proceedings, highlighting the deep-seated mistrust that had developed.
Back on Track: Production Resumes
Focus on New Models and Stability
With a successful restructuring complete and creditor agreements in place, the path was cleared for a full return. The restart at Austrian production sites was formally confirmed for late July 2025.
Production officially resumed on July 28, 2025, at the Mattighofen facility. The plant is now operating on a five-day, single-shift schedule, a carefully managed approach to ensure smooth operations and efficient output.
The initial focus is on KTM’s upcoming 2026 off-road portfolio, including the popular EXC, SX, and XC models. Additionally, production has recommenced for LC4 motorcycles, such as the 690 Enduro-R and 690 SMC-R, catering to a diverse range of riders.
A Global Impact and Future Outlook
While the immediate restart is concentrated on the Austrian facilities, this development holds significant implications for KTM’s global operations. It signifies a return to stability and renewed confidence for the brand worldwide.
For India, which stands as KTM’s second-largest market, this production reboot brings reassurance of continuity. Current models like the Duke and Adventure series are manufactured by Bajaj at their Chakan plant in India.
The return to full production in Austria provides a solid foundation for KTM’s global supply chain and future product availability. It remains to be seen how quickly some of these freshly built Austrian models might make their way into the Indian market, further expanding the brand’s presence there.
- KTM has restarted full-scale production at its Mattighofen plant in Austria.
- Bajaj Auto’s financial support, including a EUR 566 million loan, was crucial for the recovery.
- Production is initially focusing on 2026 off-road models and the LC4 range.
- The plant is operating on a five-day, single-shift schedule.
- This restart signals renewed stability and confidence for KTM’s global operations.
This restart marks a pivotal moment for KTM, allowing the company to move forward and focus on innovation and growth in the global motorcycle market.
