**KTM Faces Challenges as Bajaj Auto Plans Strategic Overhaul**
Bajaj Auto is set to implement a strategic turnaround for KTM, its largest acquisition, following a significant decline in motorcycle sales. In 2024, KTM sold 292,497 motorcycles, marking a 21% drop from the previous year’s 372,511 units. This decline comes as Bajaj Auto grapples with intense competition from Honda in the entry-level motorcycle market.
The Pune-based company aims to revitalize KTM by focusing on exports and premium motorcycle offerings to enhance profitability and compete with established brands like Royal Enfield. As part of this strategy, Bajaj Auto plans to phase out smaller brands under the KTM umbrella, streamline core operations, and create synergies between the supply chains of Bajaj and KTM to cut costs.
Analysts from Motilal Oswal noted that after acquiring KTM, Bajaj Auto is prioritizing the restructuring of its core operations. They intend to leverage manufacturing, supply chain, and distribution synergies to improve efficiency. The revival plan for KTM is designed to strengthen its premium product lineup, especially as its export operations remain profitable, despite a decline in domestic market share.
Bajaj Auto acquired KTM for approximately €800 million and is now looking to exit the bicycle and car segments to concentrate on KTM and Husqvarna motorcycles. The company plans to initiate these efforts in the first half of 2026. KTM, known for its sports car brand KTM X-Bow, has its main manufacturing facility in Austria, with assembly plants in China, Brazil, and the Philippines. In 2023, these facilities produced a total of 380,000 motorcycles, while the Bajaj-owned Chakan plant in India caters to local and export markets.
Management has indicated that the first half of 2026 will focus on consolidation and restructuring, with operational benefits expected to materialize in the latter half of the year. During a recent earnings call, Bajaj Auto’s executives emphasized their commitment to overhauling KTM’s operations to enhance performance.
In light of recent setbacks in the European premium motorcycle market, KTM has also filed for insolvency and is pursuing judicial restructuring to navigate these challenges.
**FAQ**
**What is Bajaj Auto’s plan for KTM?**
Bajaj Auto plans to restructure KTM by discontinuing smaller brands, optimizing operations, and focusing on premium motorcycle offerings to improve profitability and market share.
