KTM To Drop MV Agusta Amidst Financial Crisis

Less than a year after it acquired a controlling stake in MV Agusta, KTM’s parent company, Pierer Mobility AG, has decided to severe ties. The Austrian brand, already in the middle of a financial crisis, had acquired a majority 50.1 per cent stake in MV Agusta just nine months ago. The decision was apparently announced recently at a meeting at Confindustria Varese, where local unions met representatives of KTM. It is at this meeting where KTM officials reportedly said that MV Agusta is no longer considered “a strategic asset” by the Austrian company.

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MV Agusta's production will now return to Varese, Italy by the end of March 2025.

With this announcement, production operations are likely to return to the historic Varese plant of MV Agusta, which will once again become an independent brand. The transfer of production activities is likely to be completed by the end of March 2025, within an estimated time frame of approximately 90 days. MV Agusta though appears unfazed, and the company intends to sell its current motorcycle stock manufactured in Austria, followed by the production of three new motorcycles in 2025. The Italian brand is targeting accelerated growth over three years, hoping to achieve stability by the end of 2027.

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KTM’s financial troubles seem to be largely a result of slowdown in the motorcycle industry in Europe. Its parent company still owns GasGas and Husqvarna brands, along with the tie-up with Bajaj Auto, India’s largest motorcycle exporter. It’s only now at the end of 2024 that KTM has decided to launch its big bike range in India, preferring to focus on the single-cylinder made-in-India models for over a decade. Right now, there’s no clarity on how things pan out for KTM, but getting liquidity will be crucial, and there’s a chance KTM’s Indian partner Bajaj could play some role in turning the fortunes of the Austrian brand around.