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New Delhi: After months of financial turmoil, KTM AG has officially restarted full-scale production at its Mattighofen, Austria, plant, with Bajaj stepping in to rescue the bike-makers. KTM AG’s financial turmoil came to an absolute head in 2024 with self-administration with rising debt, and operational strain.
In the early part of 2025, Bajaj announced their intention to take over KTM and later secured € 566 million through its European subsidiary to provide KTM runway through mid-2025. While the company restarted in March, the company had to ultimately halt production again in late April, having manufactured only 4,200 motorcycles. The reason for parts shortages is due to simple mistrust amid ongoing insolvency proceedings.
This raft of corporate moves was the genesis of the recovery. A restart at the Austrian production sites has now officially been confirmed for late July 2025. Production resumed on July 28th 2025, at Mattighofen with a five-day, single-shift schedule, with an initial focus on KTM’s 2026 off-roading portfolio, which includes EXC, SX and XC models and LC4 motorcycles, including the 690 Enduro R and 690 SMC R.
As of now, the restart is limited just to Austria, but it is good news for overall KTM global operations. For KTM India, the brand’s second-largest market, models like the Duke and Adventurer are being manufactured by Bajaj at Chakan. The production reboot provides reassurance of continuity. It remains unknown if the Austrian-made models will be in the Indian lineup.
