Following months of financial turmoil and a rescue by Bajaj, KTM AG has officially restarted full-scale production at its plant in Mattighofen, Austria.
1. KTM resumes production with 2026 off‑road models and LC4 range
2. Five‑day, single‑shift schedule now in effect
3. Comes after successful restructuring, creditor agreement and loan support
KTM resumes full-fledged production
It will currently focus on its 2026 off-road portfolio
KTM AG’s financial turmoil came to a head in late 2024 with self-administration amid rising debt and operational strain. Early 2025 saw Bajaj Auto announce its intention to take over KTM and later secure a loan of EUR 566 million (Rs 5,445 crore) via its European subsidiary to provide KTM with a runway through mid-2025. Despite a restart in March, the company had to halt production again in late April after manufacturing just 4,200 motorcycles, citing critical parts shortages due to supplier mistrust amid ongoing insolvency proceedings.
That raft of corporate moves created the foundation for recovery. A restart at Austrian production sites was formally confirmed for late July 2025.
Restart signals stability
CEO Gottfried Neumeister credited employees, dealers and suppliers for their patience
Production resumed on July 28, 2025, at Mattighofen under a five‑day, single‑shift schedule, with focus initially on KTM’s 2026 off‑road portfolio – EXC, SX and XC models – and LC4 motorcycles like the 690 Enduro R and 690 SMC R.
While the restart is currently limited to Austrian facilities, it marks a turning point for KTM’s global operations. For India – KTM’s second-largest market, where current models like Duke and Adventure are manufactured via Bajaj at Chakan – the production reboot provides reassurance of continuity. However, it remains to be seen if any of the freshly built Austrian models will enter the Indian line-up soon.
Hormazd Sorabjee
Sahil Kukreja
