KTM Restarts Production In Austria After Bajaj’s Timely Rescue

Quick Read: 

• KTM restarts production in its Austrian factory after a hiatus of 3 months

• The manufacturer has sold 50,334 units globally in the first half of 2025

• Indian operations to remain unaffected thanks to Bajaj

After a turbulent few months, KTM is back on track. The Austrian motorcycle giant has officially resumed production at its Mattighofen and Munderfing plants, bringing relief to over 1,000 employees whose jobs were hanging by a thread. The restart also marks the return of production for sister brands Husqvarna and GasGas.

Batman Bajaj Swoops In To Save The Day

This recovery comes thanks to KTM’s long-time Indian partner, Bajaj Auto, which stepped in just in time to prevent the company from collapsing. Earlier this year, Bajaj invested a massive €800 million (around Rs 8,063 crore) into Pierer Mobility Group (KTM's parent company), a move that not only saved KTM from bankruptcy but also re-established its stability across its European operations.

Despite once being Europe’s biggest motorcycle manufacturer with nearly 3.8 lakh bikes made in 2023, KTM was in serious trouble in the last few months. A mix of overproduction, unsold inventory, and rising quality concerns forced the company to halt operations.

Thankfully, for Indian consumers, there's no reason to worry. KTM’s India operations have been rock solid all along. And with Bajaj Auto steering the ship here, KTM India is in safe hands. The recent ‘bailout’ also shows that Bajaj will step in again, if needed.

A Fruitful Partnership

KTM’s partnership with Bajaj has continued to yield impressive results even in 2025. In the first half of the year, Pierer Mobility Group sold 50,334 motorcycles globally, although a drop from 1,15,145 units in the same period last year. 34,950 motorcycles were sold through Bajaj Auto, a slight increase from 32,351 units last year. 

More importantly, sales in India rose by over 8%, highlighting the increase in popularity of the brand. Overall, the Group sold 85,284 motorcycles in H1 2025, compared to 1,47,496 units in H1 2024 (including India as well as international markets).

KTM’s India operations are also making an impact in the export markets. The brand exported only 1524 units in June 2024, whereas it tallied a healthy 5154 units in June 2025. This also proves that developed markets are showing more interest towards bikes that are not only affordable but are also reasonably fun, not to mention being beginner-friendly as compared to big, cumbersome, expensive and often dangerous (to the wrong hands) large capacity motorcycles.

Exciting Times Ahead

As for upcoming launches, there's a lot to look forward to, especially for consumers in India. It's no secret that KTM has been working on a replacement for its 125cc lineup as the KTM 160 Duke was spied testing a while back. The new 160cc bike is expected to hit Indian roads soon. As for those who crave something different, the 390 SMC R is expected to also make its way here soon. So, while KTM Europe rebuilds, the Indian KTM story continues full throttle.