KTM's Rocky Road: 2025 Sales Slump Underscores Persistent Challenges Despite Restructuring
Mattighofen, Austria – KTM AG's journey under the stewardship of majority stakeholder Bajaj Auto has hit another significant bump. Preliminary financial figures for 2025, released by the Austrian motorcycle manufacturer, paint a stark picture of a company still grappling with deep-seated operational and market challenges, despite a year of aggressive inventory reduction and cost-cutting measures.
The report indicates a year-over-year revenue decline of 46%, with global motorcycle sales falling 28%. While the company's statement emphasizes a "clear stabilization of the economic foundation," the dramatic drop in key metrics suggests the path to profitability remains fraught. A critical issue lingers: a substantial portion of the 209,704 units sold globally is believed to be older inventory cleared from dealership floors, rather than fresh production, explaining the disproportionate revenue collapse.
"The numbers are sobering," said industry analyst David Chen of Two-Wheel Insights. "Selling down 101,000 units of old stock is necessary medicine, but it severely impacts revenue and brand perception. The real test for 2026 will be whether they can stimulate demand for new models at healthy margins."
Operational hurdles from early 2025, linked to past supply chain disputes, limited new model production. Consequently, sales of Bajaj-built smaller displacement models (like the 390 series) accounted for a significant 78,906 units of the total. The core KTM-branded motorcycle sales, approximately 130,798 units, place the brand in a volume segment comparable to Harley-Davidson, another manufacturer facing market headwinds.
Further restructuring appears inevitable. The company has already reduced its workforce from 5,310 to 3,782 employees year-over-year, aided by divesting non-core assets like the X-Bow car program and MV Agusta. CEO Gottfried Neumeister stated the focus for 2026 is on the "consistent and systematic continuation of the restructuring path," targeting efficiency gains and planned growth in revenue and sales.
Rider Reactions: A Mix of Concern and Frustration
Marcus R. (Long-time KTM enthusiast, Berlin): "It's heartbreaking. The engineering soul of this brand is special. I want them to succeed, but this constant 'restructuring' feels like managed decline. They need a knockout new product, not just more cost-cutting."
Priya Sharma (Motorcycle journalist, Mumbai): "The Bajaj partnership on small bikes is a bright spot. The challenge is translating that volume success to the premium, higher-margin segments in Europe and North America. The 2026 model reception will be critical."
"Diesel" Dan (Forum moderator, online rider community): "Lipstick on a pig. They fired people, sold off the cool side projects, and dumped old bikes at a loss. Now the CEO talks about 'momentum'? What momentum? The momentum of a rolling bankruptcy. Prove me wrong."
Anja K. (KTM 790 Adventure owner, Oslo): "My dealer's service is still top-notch, and I love my bike. But the uncertainty is worrying. Will there be parts support in five years? Will my bike's value vanish? They need to communicate a clear, believable future to customers, not just investors."
As KTM enters 2026, the industry watches to see if the brand's celebrated off-road and performance spirit can be matched by the financial discipline required for a sustainable comeback.