KTM Faces Financial Crisis with 265,000 Unsold Motorcycles and Seeks Restructuring (Instagram @ktm_official)
KTM is facing serious financial problems, with 265,000 unsold motorcycles accumulating in inventories around the world. This number was revealed during the company’s bankruptcy hearings, where the future of its restructuring plan was discussed.
The company’s difficulties are mainly attributed to poor management decisions, such as overproduction of motorcycles, which led to a significant increase in liquidity needs, estimated at $457.8 million between 2023 and 2024.
Additionally, despite an increase in sales in 2023, KTM did not adjust its production to match the drop in demand, resulting in an accumulation of unsold units. While the company faces these challenges, there are rumors that Bajaj, one of its largest shareholders, may take on a more active role, and some voices are calling for the resignation of CEO Stefan Pierer due to his poor management.
This situation highlights a disconnect between KTM and its customers, especially after the company focused its strategies on high-priced motorcycles, such as the $20,000 models, while its lower-displacement bikes were left behind.
This marketing mistake may have further damaged the brand’s position in the market, raising questions about how dealerships will handle the surplus inventory and whether they will be forced to reduce prices to clear out unsold bikes.
Source: Ride Apart | Photo: Instagram @ktm_official | This content was created with the help of AI and reviewed by the editorial team
