KTM Faces Financial Crisis, 1,800 Employees At Risk of Layoffs

KatadataOTO – The automotive industry is facing a fairly big storm. After Nissan, now the condition of KTM is no less critical.

According to a Motorcyclenews report on Thursday (15/05), the manufacturer from Austria is on the brink of bankruptcy due to financial problems.

Pierer Mobility revealed that KTM's pre-tax loss amounted to 1.28 billion euros, or equivalent to Rp 21.7 trillion.

Their revenue also dropped by 29.4 percent from 2.66 billion euros or Rp 45.2 trillion in 2025 to 1.8 billion euros, equivalent to Rp 31.9 trillion.

Photo : id.e-scooter.co

Furthermore, KTM's net debt reportedly soared, reaching 1.6 billion euros or Rp 27.8 trillion.

"Production at KTM's Mattighofen factory has been halted since December 2024. It only restarted in mid-March thanks to a 150 million euro or Rp 2.5 trillion cash injection from Bajaj," wrote Motorcyclenews.

On the other hand, KTM's four production lines will resume operations in the summer if funding becomes available.

Then, inventory was cut by 18 percent from 2024 through targeted production cuts.

The number of employees was also affected; by December 2024, the number of staff had decreased by 874 compared to the previous year.

With 750 people laid off in early 2025 and another 220 expected to be affected by layoffs following the planned sale of MV Agusta.

In total, KTM has laid off 1,859 of its employees amidst the ongoing crisis.

Sadly, Pierer Mobility will completely exit the motorcycle market in 2025. They also plan to sell shares in Husqvarna and GasGas, and then review their 70 percent stake in the Felt brand.

For your information, the Pierer Group sold 292,497 vehicles throughout last year, a 21 percent decrease from 372,511 in 2023.

More than 60 thousand of them were sold through Indian partner Bajaj. Meanwhile, the European market remains the largest segment with 38 percent of total sales.

Meanwhile, North America accounted for 24 percent, with India and Indonesia sharing 21 percent.

Pierer Mobility needs a fresh cash injection of 600 million euros or Rp 10.2 trillion to continue their business.