KTM Restarts Motorcycle Production At Mattighofen

KTM has confirmed that it has restarted motorcycle production at its factory in Mattighofen following a halt in production after the Austrian brand was embroiled in a financial crisis. According to latest reports, KTM has already restarted production in its Austrian plant which was scheduled to begin in mid-March after a restructuring plan to revive KTM was approved by creditors. Production in KTM’s Mattighofen factory in Austria was halted after KTM entered a 90-day period of “self-administration” on November 29, 2024, leading to multiple job losses amidst reports of a staggering $3 billion debt. 

Also Read: KTM Restructuring Plan Approved By Creditors

Last month, creditors accepted a restructuring plan for KTM, which requires a one-off cash payment of 548 million Euros or 30 per cent of claims by May 23, 2025. The restructuring plan aims to enable KTM to resume production, with initial funding of 50 million Euros from shareholders to restart phased manufacturing from mid-March 2025. KTM says it needs a total of 800 million Euros in fresh capital to get back on its feet. 

Also Read: Bajaj Auto Approves 150 Million Euro Funding For KTM

Meanwhile, in India, KTM has already launched the made-in-India KTM 390 Adventure, with the KTM 390 Enduro to be launched in early April, followed by the KTM 390 SMC later in 2025. Clearly, KTM’s Indian partner is still bullish on the Austrian brand’s prospects in India, the world’s largest motorcycle market, as well as overseas. And Bajaj Auto’s clout and financial strength will go a long way in the revival of KTM’s fortunes in the next few years.

Watch the new KTM 390 Adventure review:

Also Read: KTM Faces Financial Trouble; Seeks Funding Of 100 Million Euros

Last month, the Board of Directors at Bajaj Auto Limited approved investing funds of up to 150 million Euros in its wholly-owned subsidiary, Bajaj Auto International Holdings BV, Netherlands (BAIH BV). Although Bajaj Auto didn’t specify the exact nature of where this fresh investment will be used, BAIH BV currently owns a 49.9 per cent stake in Pierer Bajaj AG (PBAG), which in turn holds nearly 75 per cent ownership subsidiary Pierer Mobility AG, the parent company of KTM AG.  

BAIH BV has become an investor in PBAG through convertible bonds which value approximately 50 million euros (about Rs. 461.6 crore). According to market reports, these new convertible bonds will have the option of being converted to PBAG shares from June 1, 2025 to February 29, 2028. This is seen as a sign of aligning the strategic interests of Bajaj Auto with that of the KTM group even further. So far though, there seems to be no involvement of Bajaj Auto in the management of KTM directly. 

car&bike has learnt from sources in Bajaj Auto that the company is not keen to take over management of KTM AG, despite the fresh investment, and KTM will continue to operate as an independent Austrian brand with its own management and personnel.