KTM's struggles continue under Bajaj ownership

Feb 05, 2026

On January 13, KTM parent company Pierer Mobility AG was officially renamed Bajaj Mobility AG. The banner swap occurred less than two months after the Indian manufacturer acquired sole control of Pierer Bajaj AG and a 74.9% stake in Pierer Mobility AG.

The recent changes go beyond just a new name, however.

Prune away

In mid-January, KTM announced a restructure that resulted in “a reduction of around 500 employees.” The layoffs were primarily limited to “salaried positions and middle management,” and now bring the Austrian OEM’s headcount to 3,794 employees. KTM CEO Gottfried Neumeister characterized the move as “a difficult but necessary decision.” It’s just one of Bajaj’s recent cost-cutting initiatives.

An exterior shot of KTM AG's headquarters. — To re-focus on KTM’s motorcycle business, Bajaj divested what it calls “non-core activities” in 2025. That includes terminating KTM’s distribution deal with CFMOTO, as well as selling its stake in FELT Bicycles, MV Agusta, and X-Bow (sports car project). KTM photo.

On the heels of the layoffs, KTM AG subsidiary WP Suspension announced that it’s entering the braking business. The in-house-developed system is designed for sub-500 cc models and includes a radially mounted four-piston front caliper, radial master cylinder, and braided hoses. WP will reportedly produce 300,000 braking systems and 1.5 million hoses annually. At that rate, the brand might need to supply systems to external marques because KTM sales haven’t kept up with that pace in recent years.

The KTM 390 Duke staged in an urban location. — WP’s first-ever braking system already comes equipped on the 2026 KTM 390 Duke. KTM photo.

Stubborn sales slump

It’s no secret that KTM has struggled with sales in recent years. Those falling figures (among other things) led to the company's self-administration filing in late 2024. Unfortunately, things only got worse in 2025. Bajaj Mobility AG recently published its preliminary sales figures for 2025. The results weren’t encouraging.

In 2024, KTM sold 122,581 bikes. That number plummeted to 87,923 in 2025, a 28.3% decrease in sales. Neither Husqvarna nor GASGAS fared much better, recording year-over-year sales slumps of 27.2% and 19.5%, respectively. Altogether, KTM, Husqvarna, and GASGAS shipped 173,460 units in 2024. The three manufacturers only moved 126,001 bikes in 2025. That’s a 27.4% nosedive.

An 890 Adventure R rider hucks a wheelie off-road. — The only way from here is up. At least that's what KTM management is hoping. KTM revenues plunged by 46.3% in 2025. Can Bajaj turn the ship around? KTM photo.

Yes, Bajaj was able to reduce KTM’s global stock from 248,280 units in 2024 to 147,027 units in 2025 (a 101,253 unit difference), but the brand still has a long row to hoe. The name on the banner may have changed, but the problems plaguing KTM sure haven’t.