KTM's Motorcycle Production STOPPED Just Months After Restarting Factory: Here's Why
Just six weeks ago, the Austrian motorcycle manufacturer KTM restarted the production of its motorcycles in Austria. However, it has now been reported that the company has once again shut down the production. This new shutdown will commence from April 28, Monday, as the company is facing severe shortages of components that are critical for the assembly of the KTM bikes. Earlier last month, the company restarted its production very cautiously after shutting down the plant in December.
KTM production halted again
The Mattighofen plant in Austria, as stated, will be shutting down its operations from Monday, 28th of April. As per the company, this shutdown of production is due to the ongoing insolvency proceedings of the company. Also, the delayed deliveries in Europe and Asia, long lead times of 20–52 weeks after COVID. Lastly, the suppliers of KTM are demanding prepayment due to KTM's weakened financial state.
KTM CEO Gottfried Neumeister, while announcing the news, stated that the company has introduced a 30-hour workweek from May 1 to July 31 to avoid layoffs. It also has to be noted that employees of the company will see proportional wage cuts. Presently, the company has not mentioned the restart timeline, as the production warehouses are lacking essential components.
So far, only 4,200 motorcycles have been produced with the available materials which were stocked in the warehouses. It is believed that the company could tentatively restart the production from mid-June; however, it cannot be said with certainty.
What has happened with KTM?
For those who may not be aware, back on April 22, it was announced by Pierer Mobility AG, which is the parent company of KTM, that no investor has currently made a binding commitment for the €600 million capital. This particular capital is required by the company to restart its production in full force. As mentioned above, KTM production was stopped on December 13th last year.
At the time, only 200 employees were retained by the company from a total of 4,100 employees. KTM, at the time of restart in March of this year, wanted to gradually scale up its production by June by producing 2,30,000 motorcycles in FY25. However, the lack of parts and supplier distrust has resulted in the stopping of production again.
KTM fell into deep financial troubles back in November of last year, and at the time, it filed for bankruptcy. Later, in February of 2025, creditors approved a restructuring plan for KTM. Under this plan, it was decided that the company will pay 30 percent of its €1.8 billion liabilities by May 23, 2025. It was also highlighted that it will need to raise €600 million. Also, a significant capital of €150 million was injected by Bajaj Auto from India to help in supporting the restart of the brand.
KTM has launched new 2025 390 Adventure and Enduro in India
Despite the brand struggling in the international markets, KTM is betting big on the Indian market. For this, it has recently launched the new 390 Enduro and 390 Adventure in India. The 390 Enduro has been launched at Rs 3.36 lakh, and the 390 Adventure has been launched with a price tag of Rs 2.6 lakh. Both of these rugged off-roader motorcycles have been launched to lure in adventure motorcycle enthusiasts.