New Delhi: Following a long timeframe of financial instability, KTM AG has formally resumed full-scale production at its Mattighofen plant in Austria, with Bajaj pushing their money in order to rescue the bike-makers. KTM AG’s financial problems peaked back in 2024 with self-administration due to a rise in debt and operational hardship.
At the beginning of 2025, Bajaj had announced their intention to take over KTM and later managed to secure € 566 million through their European subsidiary to provide KTM runway through mid-2025. While the company resumed operations in March, they ultimately had to halt production again in late April, having produced only 4,200 motorcycles due to parts shortages caused by mistrust amid ongoing insolvency proceedings.
This raft of corporate moves was the start of the recovery of this brand. A resurrection of production at the Austrian sites has now been confirmed officially for late July 2025. Production resumed on July 28th 2025, at Mattighofen with a five-day, single-shift schedule for now. It will initially 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 that is a silver lining for overall KTM global operations. For KTM in India, which is their second-largest market, models like the Duke and Adventurer are at present being manufactured by Bajaj at Chakan. The production reboot provides reassurance of continuity. In the Indian market if the Austrian models will arrive is unknown.