Is it an industry-wide sales slump or is KTM just losing ground relative to the competition?
Sales results are slightly positive in Europe and India. Sales are sagging in North America, Australia, and China.
We know it as KTM, but they are owned by Pierer Mobility (Austrian) and co-owned by Baja Auto (Indian). Pierer also owns the brands Husqvarna, GasGas, MV Augusta (50.1%) and WP Suspension.
Ownership structure, branding, and manufacturing locations have become blurred and muddied. The meticulously engineered Austrian motors for the KTM bikes (under around 700cc) are ALL now made by CFMOTO in China. So the KTM brand is owned by an Austrian and India parent company and most of the KTM motors are built by CFMOTO in China. So the overpriced and overrated KTM motorcycle is an Aus-Ind-Chi motorcycle. It’s an Ausindchi motorcycle.
I’ve owned a CFMOTO scooter and it had a pretty good quality build. I really can’t knock CFMOTO and I can see how KTM decided to partner with them for engine production. Oh, CFMOTO produces the entire KTM motorcycle for sales in the Chinese market under the KTM brand name. I bet Chinese cyclists know KTM bikes are built by CFMOTO in China. I also bet China sales are slumping because any potential buyer in China that can actually afford to pay the premium price for a KTM wants a “real KTM” and not something that was built in China (they know).
Layoffs in higher production cost countries and shifting to lower cost production countries is nothing new in the globalization of world markets. Looking at where sales are slumping though, I suspect buyers in these regions are catching on that the once renowned Austrian-engineered and built KTM is taking some cost-cutting shortcuts in production by shifting to China and India. It doesn’t matter if the build quality is comparable, it’s the perception of cheap Chinese/Indian junk and nationalist pride that are hurting sales. Buyers don’t want to pay a premium price for a perceived generic assembly line bike with questionable DNA. And KTM hasn’t passed along any of the production cost savings to consumers in the form of lower prices.
Real or perceived quality concerns, KTM (Pierer Mobility) is tarnishing their own reputation.
https://www.motorcyclenews.com/news/2024/september/pierer-announce-further-jo...