KTM Stays in Mattighofen: How Neumeister Had to Convince Bajaj

• Neumeister: a clear commitment to Austria as a location, with more than 440 engineers
• Second quarter of 2026 with the first positive operating result since the end of the restructuring
• According to Neumeister, the MotoGP contract until 2031 was only possible with Bajaj’s backing

A little over a year ago, a single sentence from India caused unrest in Upper Austria. Rajiv Bajaj, head of KTM owner Bajaj Auto, declared European production dead. Since then, concerns have persisted that the assembly lines in Mattighofen could one day come to a standstill and that KTM motorcycles would only be built in India. Gottfried Neumeister has now once again denied these rumours. In an interview, the KTM CEO also speaks openly about how the cooperation with the new owner works, why Bajaj initially had little time for racing and how the company’s figures look.

Will KTM production stay in Mattighofen?

Yes. According to KTM CEO Gottfried Neumeister, moving production to India is not on the agenda, and there is a clear commitment to Austria. “There were also rumours that production would be moved to India, but there is a clear commitment to Austria. We have more than 440 engineers who design top products and set standards,” says Neumeister.

On paper, too, Mattighofen has remained the centre of the group. It is now also the registered office of Bajaj Mobility AG, formerly Pierer Mobility AG and the parent company of KTM AG. Even during the restructuring, the company had stated that Mattighofen and neighbouring Munderfing would remain the industrial base of the motorcycle business. In May 2025, shortly after the rescue by Bajaj, Neumeister had also pointed out that the entire off-road range is manufactured in Mattighofen. For these models, he said, India has neither a suitable supply chain nor the necessary know-how.

Where did the rumours about a move to India come from?

The trigger was mainly a TV interview with Rajiv Bajaj in August 2025. Speaking on the Indian business channel CNBC TV18, the head of Bajaj Auto said with regard to the high costs in Europe: “European manufacturing is dead.”

The statement referred to the market in general. However, Bajaj gave an example that made people in Mattighofen sit up and take notice. British manufacturer Triumph, he said, had moved its entire production to Thailand and now also builds in India. “If Triumph could do that 15 years ago, why in principle not KTM too?” Bajaj asked. India as a location is very competitive, he said. The KTM motorcycles that Bajaj already builds and exports from India today deliver a margin of more than 30 percent, measured by EBITDA, meaning earnings before interest, taxes, depreciation and amortisation.

At the same time, Bajaj described KTM as a premium and lifestyle brand of “inestimable value” for his group. “We have to restore the brand and cut costs,” he said at the time. If that succeeds, KTM has a “bright future”. Neumeister responded to the debate as early as September 2025: “There are currently no plans to relocate production.”

The concern did not come out of nowhere. Bajaj had rescued KTM from insolvency with a cash injection of 800 million euros (around 895 million US dollars) and took control in return. In October 2025, the Austrian Takeover Commission gave the green light, and in November 2025 Bajaj Auto took sole control of the former Pierer Bajaj AG. This company holds 74.94 percent of Bajaj Mobility AG. Bajaj thus also indirectly controls KTM AG.

How did Neumeister convince Bajaj of motorsport?

With a lot of persuasion and several trips to India. Neumeister describes how the new owner initially had little feel for racing, because Bajaj comes from a completely different market.

“At the beginning there was little understanding for the topic of motorsport,” says Neumeister. “They come from the world of commuters, where you sell on price, and other attributes matter there than they do for us. It took several trips to India on my part to convince them. We could not have made our commitment to MotoGP for the next five years without their backing.”

That commitment has now been signed. On 19 June 2026, the MotoGP Group and the five manufacturers KTM, Aprilia, Ducati, Honda and Yamaha confirmed a joint agreement for the years 2027 to 2031. For the first time in the history of the series, all manufacturers have signed a single contract covering the next five years. At the end of September, Bajaj CFO Dinesh Thapar also attended a MotoGP event for the first time, in Spielberg, to see for himself what role racing plays for KTM and its sales. In the 2026 MotoGP season, KTM also has a sporting success to celebrate again: Pedro Acosta took KTM’s first premier-class win in almost four years at the home race at the Red Bull Ring.

The division of roles is also important to Neumeister. Bajaj did not take over the management, he says; he was given permission from above to build an independent team. He can choose the board members freely. In the first 18 months he was more or less on his own, because he could not persuade anyone to take the job. “Now we are well positioned, Bajaj is happy to have the overall overview, and we take care of the show,” says Neumeister.

However, that is not a free hand without conditions. “I don’t know how long the leash is if we don’t deliver results and make progress,” the KTM CEO admits. He speaks openly about the fact that racing has to justify itself when 500 people are being laid off at the same time. That is why KTM has to prove with data how success on the track affects sales figures.

How is KTM doing financially after the restructuring?

Significantly better than a year ago, but not out of the woods yet. In the second quarter of 2026, the group achieved a positive operating result for the first time since the completion of the restructuring proceedings, but for the first half of the year as a whole it is still in the red.

According to the half-year report of Bajaj Mobility AG, group revenue rose by 65 percent to 701.4 million euros (around 784 million US dollars) in the first half of 2026. EBITDA swung from minus 183.3 million euros (around minus 205 million US dollars) in the prior-year period to plus 37.6 million euros (around 42 million US dollars). EBIT, the operating result before interest and taxes, was still minus 24.8 million euros (around minus 27.7 million US dollars) for the half-year. In the second quarter alone, however, it was plus 1.3 million euros (around 1.5 million US dollars). The net result for the first half of the year was minus 47.0 million euros (around minus 52.6 million US dollars). The comparison with the previous year is only of limited value, because production and sales were temporarily halted in the first half of 2025 due to the restructuring.

Neumeister himself is cautious about the quarter. “In the second quarter, we broke even at EBIT level for the first time in two years,” he says. “Finally making a profit again is a great relief for us.” And further: “But we have to keep our feet on the ground, one good quarter does not make a good balance sheet. And two good quarters do not make a healthy company.”

How many motorcycles did KTM sell in the first half of 2026?

Neumeister speaks of almost 100,000 motorcycles sold. The half-year report lists 89,004 motorcycles for the KTM, Husqvarna and GasGas brands, compared with 46,386 in the previous year. In addition, there are 58,568 motorcycles that Bajaj Auto sold directly in India. Together, that makes 147,572 motorcycles of the three brands. In Europe, the group sold 43,426 motorcycles, more than twice as many as a year earlier. Motorcycle revenue of the three brands rose by 109.1 percent to 579.6 million euros (around 648 million US dollars).

There was also a tailwind from the market. In the five major European markets of Germany, France, Italy, Spain and the United Kingdom, a total of 16.8 percent more new motorcycles were registered in the first half of 2026 than a year earlier, according to the manufacturers’ association ACEM. Neumeister nevertheless sees KTM ahead of the competition: “When I look at our environment, the other European manufacturers are losing ground in the first half of the year. Of course, everyone now says that we are coming from a lower level; it is still very encouraging that we are outperforming the market and have sold almost 100,000 motorcycles.”

How many employees does KTM still have after the restructuring?

At the end of June 2026, the Bajaj Mobility Group employed 3,416 people. At the end of 2025 the figure was still 3,782, and at the end of 2023 more than 6,000.

At the beginning of 2026, the company launched a further reduction of around 500 jobs, mainly affecting salaried staff and middle management. It is due to be completed in the third quarter of 2026. Together with the restructuring, so-called overhead costs, meaning the costs of administration and organisation, fell by 56.9 million euros (around 63.6 million US dollars) in the second quarter alone. In addition, inventories at KTM, dealers and importers have fallen by 10,190 motorcycles since the start of the year.

Financially, too, KTM is now standing on its own feet. In February 2026, KTM AG received a refinancing loan of 550 million euros (around 615 million US dollars) with a five-year term from a banking consortium. Among other things, this was used to repay a loan previously granted by Bajaj. At the same time, the ongoing interest burden is falling.

What’s next for KTM?

KTM first wants to become sustainably profitable and only then grow again. “Volume is not everything, we first have to become profitable before we can scale the company,” says Neumeister. “We are on a good path, all new products are being well received. That is what determines how things go for the company.”

For the second half of the year, management is planning further cost cuts, a simpler organisation and new models. The company explicitly states that whether the positive result of the second quarter holds depends on demand as well as on economic and geopolitical conditions. The goal remains to improve profitability and achieve sustainably positive free cash flows. After 18 months of crisis since autumn 2024, KTM wants to position itself once again as one of the leading brands worldwide and above all in Europe.

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