While the long-term outlook for KTM is generally positive, it will not participate in Grand Prix-level motorcycle street racing in 2026, saving an estimated $47.8 million a year, according to one of Austria’s leading national newspapers.
The report, published by Der Standard, said the company would not withdraw from the Grand Prix before 2026 because it was concerned about “significant public relations damage”.
KTM is in the process of financial restructuring, layoffs and production shutdowns after incurring at least $1.87 billion in debt and accumulating excess unsold inventory. The report by the agency, which represents the company’s creditors, said the company “plans” to withdraw from the MotoGP Moto2/Moto3 competition. Der Standard’s report cites an internal document prepared by a Boston consulting group for the restructuring manager. That document outlines the initial period and expected annual savings.
The company It will spend $208 million on R&D in 2023, while the total motorsports activity will spend around $98.8 million, a figure Der Standard says the restructuring manager calls “very high.”
In the year A withdrawal by the end of 2025 may require the company to negotiate to end several contracts. In the year KTM’s announcement of the 2024 signing of Maverick Vinales and Enea Bastianini to the Tech3 team, which is slated to have full factory equipment by 2025, is part of a “multi-year deal” the pair have signed. Brad Binder’s contract runs through 2026, according to a KTM press release, while Pedro Acosta’s contract with the company in 2024 is also a “multi-year” deal, according to KTM’s announcement of the deal. And KTM has a deal with MotoGP series organizer Dorna to put bikes on the grid.
Expected growth in the off-road market is expected to help KTM out of its current financial woes, the report said. That market share is expected to grow by 3.5% per year in the near future, and KTM’s market share will hover between 40 and 60%, according to the report.
KTM’s next court hearing is scheduled for January 24.
What is KTM?
The company at the center of the bankruptcy is KTM AG, according to a report issued by the agency on behalf of those owed money. But it is part of a complex arrangement of companies and subordinate organizations – the report says KTM alone has more than 60 branches. A review of the company’s financial reports shows that most of these are distribution and supply components based on KTM AG’s activities, several of which are expected to go through bankruptcy proceedings.
KTM is one of the five operating divisions of Pierer Mobility AG. Under the KTM umbrella are Husqvarna, GASGAS and MV Agusta, although KTM’s 51% ownership stake in the Italian sports bike company is expected to be liquidated as part of the restructuring. KTM has ownership interests in Chinese manufacturer CFMOTO and its electric vehicle sub-brand Zeeho.
Pier Mobility’s other divisions include Husqvarna, GASDAS and Felt’s bike division; Design and R&D department led by Kiska, KTM F&E and Sero; Pier Innovations, an IT division that includes Avocado, LX Media and KTM Informatics, “works in a variety of technology areas such as artificial intelligence, big data, blockchain and business modeling,” according to the company’s website. and the Motorsports Factory Racing Division.
Pierer Bajaj AG is the majority owner of Pierer Mobility. The Bajaj Group is a giant Indian conglomerate with interests in motorcycles, cars, home appliances, lighting, iron and steel, insurance, travel and finance. The Bajaj family is worth $23.4 billion, according to Forbes.
Pierer Industrie AG is the majority owner of Pier Bajaj. In the year Since November, Pier Industries has formed a technology/electronics company with three main divisions, including Abtech. Pierre Bajaj AG; and Pankl AG, which operates in the racing, automotive and aerospace industries.
KTM Racing Plans for 2025:
KTM’s racing activities are divided into four main categories: Road Racing, Motocross/Supercross, Enduro/Off-Road and Rally.
For 2025, the company plans to field six riders in the Motocross World Championship (MXGP) series on KTM 450 SX-F and 250 SX-F machines. In North America, KTM plans to field four riders in the Super Motocross World Championship (SMX) series, which includes Supercross and Motocross events from January through the summer.
In the Enduro/Off Road category, KTM will field eight factory riders in various North American series. In addition, the company provides at least two factory riders in Europe, the company’s factory racing teams compete in more than 100 enduro races every year.
In the Rally class, KTM plans to field four riders for the Dakar Rally.
In Grand Prix street racing, KTM has retained its GAASGAS and Husqvarna brands for 2025. The official provisional entry lists are two riders on the Red Bull KTM Ajo team and two on the CFMOTO Aspar team in Moto2; 16 riders on the company’s RC250GP machines in Moto3; and the two-rider factory Red Bull team and the two-rider Tech3 team in MotoGP.
