KTM manufacturing and financial status

Following its acquisition by India-based Bajaj, KTM has entered a period of financial recovery. After facing significant debt and insolvency, the manufacturer reported a 65% year-on-year revenue increase to €701.4 million for the first half of 2026, with motorcycle revenue specifically surging by 109.1%.

Despite speculation regarding the relocation of manufacturing to India due to European production costs, CEO Gottfried Neumeister has reaffirmed that production will remain in Mattighofen, Austria. The company intends to maintain research, development, and high-end manufacturing at the Austrian site, supported by a team of over 440 engineers.

While maintaining its Austrian headquarters, KTM is expanding its global manufacturing footprint by utilizing existing production capabilities in India and establishing a presence in Brazil. In October 2026, KTM do Brasil officially inaugurated a dedicated manufacturing plant in Manaus, Amazonas. This facility marks a transition from a previous assembly partnership with Dafra Motos to an independent operation under the Completely Knocked Down (CKD) system.

Representing an investment of approximately R$ 20 million, the Manaus plant is dedicated to the KTM and Husqvarna brands, focusing on ten models across the motocross, enduro, adventure, and street segments. The facility currently employs 100 professionals and has an installed annual capacity of 20,000 motorcycles. Production is expected to scale gradually, with a target of 3,500 units by the end of 2026 to support the expansion of the Brazilian dealer network, which the company intends to grow from 12 to 30 outlets by 2027.

Additionally, the company has secured approval to continue participating in MotoGP for the next five years with an independent team.