KTM confirms Bajaj will not move motorcycle production over to India

KTM CEO Gottfried Neumeister has confirmed production of the Austrian manufacturer’s motorcycles will continue to take place at its headquarters in Mattighofen, Austria. 

This is in response to recent rumours suggesting KTM’s motorcycle production could be moved to India. 

Following 18 months of turmoil for the Austrian brand, which started around this time in 2024, recent months have looked a lot better for the company.

KTM recently turned profit for the first time in nearly two years, while the company sold nearly 100,000 motorcycles in the first half of 2026. 

This marks a drastic turnaround from where the Austrian marque was just 12 months ago, where major debt had piled up, hundreds of employees were let go, and creditors, along with current owners Bajaj Auto, stepped in to save the company.

But KTM is now back on track in terms of the wider outlook for the brand, as well as its MotoGP project, which has been renewed for another five years.

However, convincing Bajaj that its MotoGP, and wider motorsport programmes were worth continuing, did not come easy when the Indian company initially took over KTM in 2025.

Speaking to Speedweek.com, Neumeister said: 

“At the start, there was little understanding of motorsport. They come from the world of commuters, where sales are driven by price; there, different attributes are important than here. It took me several trips to India to convince them. We couldn’t have made our commitment to MotoGP for the next five years without their backing. 

“I’ve been given the go-ahead from the top to set up an independent team, so Bajaj hasn’t taken over the management. There were also rumours that production would be moved to India, but there is a clear commitment to Austria. We have over 440 engineers who design top-class products and set new standards.”

While KTM has regained a foothold in the two-wheel sector, there is still work to be done after the financial struggles it endured during the last two years. 

That will continue over the coming months, with the manufacturer keen to re-position itself as one of the leading brands globally, but especially in Europe. 

Neumeister added: 

“When I look at the market around us, the other European manufacturers are posting losses in the first half of the year. Of course, everyone is now saying that we’re coming from a lower base; nevertheless, it’s very encouraging that we’re outperforming the market and have sold almost 100,000 motorbikes. 

“Volume isn’t everything; we must first become profitable before we can scale up the business. We’re on the right track, and all our new products are being well received. The company’s future depends on this.”

Find the latest motorcycle news on Visordown