By Michael Gougis
While the long-term outlook for KTM is generally positive, the company will not participate in Grand Prix-level motorcycle road racing in 2026, saving an estimated $47.8 million per year, according to a report from one of Austria’s most prominent national newspapers.
The report, published by Der Standard, says that the company will not withdraw prior to 2026 because it fears “significant PR damage” if it withdraws from Grand Prix racing any earlier.
KTM is undergoing a financial restructuring, layoffs, and a production halt after incurring at least $1.87 billion in debt as well as accumulating excessive unsold inventory. A report from the agency representing the company’s creditors says the company “plans” to withdraw from “MotoGP Moto2/Moto3” racing. The Der Standard report quotes an internal document prepared by the Boston Consulting Group for the restructuring administrator; that document outlines the timeline for the departure and the expected annual savings.
The company spent approximately $208 million on R&D in 2023, with overall motorsports activity spending at approximately $98.8 million, a figure the restructuring administrator called “exceptionally high,” according to the Der Standard report.
Withdrawing at the end of 2025 may require the company to negotiate an end to several contracts. KTM’s 2024 announcement of the signing of Maverick Vinales and Enea Bastianini to the Tech3 squad, which is slated to have full factory equipment in 2025, said the pair was signed as part of a “multi-year agreement.” Brad Binder’s contract runs through 2026, according to the KTM press center, and the contract Pedro Acosta signed with the company in 2024 also is a “multi-year” agreement, according to KTM’s announcement of the deal. And KTM has a contract with MotoGP series organizer Dorna to put bikes on the grid.
Anticipated growth in the off-road market is expected to help pull KTM out of its current financial difficulties, the report indicates. That segment of the market is expected to grow 3.5 annually in the near future, and KTM’s share of that market hovers between 40 and 60%, the report indicates.
The next court hearing for KTM is set for January 24th.
What Is KTM?
The company at the center of the insolvency is KTM AG, according to a report issued by the agency representing creditors owed money. But it is part of a complex arrangement of companies and subsidiaries–the report says that KTM alone has more than 60 subsidiaries. A review of the company’s financial reports shows that most of these are distribution and supply entities that depend on KTM AG’s activities, and several of these are expected to go through insolvency proceedings as well.
KTM is one of five operating divisions of Pierer Mobility AG. Under the KTM umbrella is Husqvarna, GASGAS, and MV Agusta, although KTM’s 51% ownership stake in the Italian sportbike company is expected to be spun off as part of the restructuring. KTM also has an ownership interest in the Chinese manufacturer CFMOTO and its electric vehicle sub-brand Zeeho.
Pierer Mobility’s other divisions include the Husqvarna, GASGAS and Felt bicycle division; the design and R&D division, headed by Kiska, KTM F&E and Cero; an IT division that includes Pierer Innovation, Avocado, LX Media and KTM Informatics and “operate(s) within various technology fields such as Artificial Intelligence, Big Data, Blockchain and Business Modeling,” according to the company website; and its Motorsport Factory Racing division.
Pierer Bajaj AG is the majority owner of Pierer Mobility. The Bajaj Group is a massive Indian conglomeration with interests in motorcycles, cars, home appliances, lighting, iron and steel, insurance, travel and finance, according to Wikipedia. The Bajaj family is worth $23.4 billion, according to Forbes.
Pierer Industrie AG is the majority owner of Pierer Bajaj. As of November, Pierer Industrie operated three major divisions, including Abatec, a technology/electronics company; Pierer Bajaj AG; and Pankl AG, which operates in the racing, automotive and aerospace industries.
KTM’s Racing Plans For 2025:
KTM’s racing activities fall 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 is slated to field four riders in the SuperMotocross World Championship (SMX) series, which incorporates Supercross and Motocross events from January through the summer.
In the Enduro/Off Road category, KTM is slated to field eight factory riders in a variety of North American series. In addition, the company will field at least two factory riders in Europe, where the company’s factory racing teams compete in more than 100 enduro races each year.
In the Rally segment, KTM plans to field four riders for the Dakar rally.
In Grand Prix road racing, KTM has shelved its GASGAS and Husqvarna brands for 2025. The official provisional entry lists show 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 squad and the two-rider Tech3 team in MotoGP.
