Life's Been Giving Lemons To This Orange Brand

KTM just about managed to get out of tumultuous times that included a close shave with insolvency. With a life raft thrown at the Austrian hooligan-maker, KTM resumed production at its Austrian plant in March 2025. However, just about a month later, the gears of manufacturing now seem to have reportedly ground to a halt yet again. The reason seems to be pretty obvious - issues with its supply chain. 

It is very surprising, to say the least, that a big manufacturer is having to ‘suddenly’ face such kinds of issues despite having learned a hard lesson a month or so ago. It’s reported that the employees received the news two days ago that, due to “serious” supply chain issues, the further planned production will not be possible. KTM reportedly has only enough inventory to make 4,200 motorcycles. Production in Mattghofen has been suspended until July 27, 2025. While it may resume production after the said date, it will still depend on whether KTM is able to secure financing for the restructuring plan amounting to around 600 million Euros. The brand’s publishing of the Annual Financial Report 2024 has also been postponed because of the restructuring proceedings.

Should We Be Worried?

Whatever has been reportedly happening in Austria is unlikely to have any impact on KTM India in particular. KTM is dependent on Bajaj for its operation in India, including its production, sales, and aftersales service. The Indian market seems to be doing quite well, particularly in the enthusiast segment. 

With a sales figure of 60,875 units in the FY 2024-2025 (April 2025 to March 2025), the brand’s sales in India is down by just 4.9 percent year-on-year. This is set to improve in the coming months as KTM launched the highly capable (and also well received by riders) 390 Adventure, and also the more hardcore, trail-friendly 390 Enduro R in India. Moreover, KTM seems to have solid plans for the Indian market as it is working on bringing out a 160 Duke as well as the RC160 as replacements to the now-discontinued 125cc range. This will help the brand grab a big chunk of market share that’s currently dominated by the Yamaha R15 and the MT-15. With all these plans in place, the brand’s future looks pretty good, at least in India, so there’s no real reason to worry.

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