The new restructuring plan could go a long way in helping KTM come out of its financial troubles. Bajaj Auto has also played a key role in KTM’s survival
KTM’s proposed restructuring plans have been accepted by the brand’s creditors during a court hearing in Austria. This is good news, and will help the brand in coming out of its debt issues. As per this plan, KTM AG will have to make a one-off cash payment of 548 million Euros (about Rs 5,017 Crore) by May 23, 2025. This payment will amount to 30 percent of the creditors’ claims.
Once the payment is done, the restructuring plan will become legally binding by June 2025 after the court confirms it. Currently, Bajaj Auto has jumped in, with an approval of 150 million Euros (around Rs 1371 crore) as investment. Out of this, 50 million Euros has now been transferred to enable KTM’s resumption of phased manufacturing in its Austria plant from mid-March 2025.
One of the major issues which the brand was dealing with was the excess inventory build-up, something which was reported back in December 2024. The brand has around 2.65 lakh units that have not been sold. One of the challenges KTM will face is clearing this out before they get into increasing production and sales of newer models.
How will this affect Indian customers?
Customers in India need not have to worry, as Bajaj Auto is handling production, sales and service of KTM bikes here. The single-cylinder bikes in the KTM lineup, which includes the 125s, 200s, 250s and 390s are manufactured in Chakan, Maharashtra. This arrangement with Bajaj will continue to keep costs in check.
In India, KTM is selling quite a bit of bikes but the most popular ones (in terms of sales) belong to the 250 lineup. However, now with the recent price cut of the 390 Duke and the launch of the 2025 KTM 390 Adventure, the 390 series is also picking up pace. It also looks like KTM is planning on bringing more models in the 390 lineup including the KTM 390 Adventure R, KTM 390 Enduro R and the KTM 390 SMC R. Overall, the KTM 390 range has a good combination of performance, features and competitive pricing, all of which should ensure better sales in the coming months. While exports have slowed down due to the brand’s financial issues, Bajaj is likely to ramp it up in the months ahead, now that the future of the brand is looking positive.
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