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KTM has been going through tough times since the past year or so with sales dwindling across strong holds in Europe. But every cloud has a silver lining and KTM seems to have found its own. Production has restarted in Mattighofen, Austria months after KTM had to shut down operations at the factory due to slowing demand.

The company had temporarily halted manufacturing twice as part of a broader restructuring process. The Austrian bikemaker returned to production at this facility on July 28, a fulltime, fiveday work week. This development brings a huge sigh of relief to KTM workers, dealers and the global community of riders.

KTM production restarts

As announced last week, operation restarted with the production of its offroading range of motorcycles including dirt bikes such as EXC, SX and XC models along with motorcycles underpinning the LC4 platform like 690 Enduro R and 690 SMC R. This comes as a huge relief for over 1,000 employees at this facility who were uncertain about their future when the company filed for bankruptcy last year.

Things started to fall in place when Bajaj Auto, KTM’s Indian partner, rescued the Austrian bikemaker at the last moment after investing €800 million (approx Rs 8,063 crore). The restart of production at KTM also brings relief to subsidiary brands such as Husqvarna and GasGas.

Expressing his gratitude to the entire KTM family, KTM AG CEO, Gottfried Neumeister, said, “ A special thank you goes to our employees, who have made this restart possible through their tremendous dedication, flexibility and team spirit over the past months. Their commitment during one of the most challenging phases has been – and continues to be – a key success factor for the company’s future development.”

Rollercoster KTM ride

Production first halted around December 13, 2024, soon after KTM AG filed for selfadministered insolvency on November 29 due to rising debt and cash flow issues. The suspension lasted about three months, with operations restarting in midMarch 2025. However, persistent supply chain issues led to a second shutdown on April 28, 2025, triggered by critical component shortages.

Although KTM has been going through operational and financial struggles, its India operations remained largely unaffected, primarily due to Bajaj Auto’s involvement. All entrylevel models up to the 390 range are manufactured by Bajaj in India. KTM recently discontinued the 125cc range but expanded its 390 range with the Enduro 390 R.