KTM, Bajaj Auto’s subsidiary, restarts full production at Mattighofen plant in Austria

KTM, a subsidiary of Bajaj Auto, has resumed full production at its manufacturing plant in Mattighofen, Austria. The company had suspended operations in late April 2025 due to component shortages and liquidity problems.Bajaj Auto, on May 22, announced an infusion of approximately ₹7,200 crore into KTM. The funding included a debt package aimed at ensuring business continuity.
Bajaj Auto invested in its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV), underlining its commitment to the partnership and its plan to become KTM’s majority shareholder.
KTM had entered self-administration in late 2024 following a prolonged financial crisis and declining global sales.In June, an Austrian court officially concluded the company’s restructuring process. KTM is now preparing to restart production of motorcycles, spare parts, accessories, and apparel across all its sites.

Once Europe’s largest motorcycle manufacturer, KTM had produced over 210,000 units at the Mattighofen plant in 2023, with total production across Europe exceeding 380,000 units. The production halt earlier this year was extended due to critical component shortages.

Moreover, KTM recently announced the end of its distribution of CFMoto and Zeeho electric two-wheelers in Austria, Germany, the UK, Spain, and Switzerland, effective June 1, 2025. The distribution agreement, which began in 2013, was ended by mutual consent, though the manufacturing partnership remains in place.