KTM Has 2,65,000 Bikes Left Unsold: Here’s Why

Austrian motorcycle giant KTM is wrestling with a severe financial crisis, marked by a massive inventory backlog and mounting debt. A report from a German publication “Der Standard” reveals that the company has accumulated 2,65,000 unsold motorcycles – equivalent to an entire year's worth of global sales – that are just waiting to be “Ready to Race”. 

The company's financial troubles stem from several miscalculations in production strategy. Between January 2023 and October 2024, storage costs for excess inventory created a staggering liquidity requirement of €440 million (equivalent to ₹38,941 crores). Despite early signs of slowing demand, the manufacturer continued high-volume production, leading to the current overflow.

(Also Read: KTM to Divest its Stake in MV Agusta)

The crisis has broader implications for KTM's operations. The company has already begun implementing cost-cutting measures, including layoffs. The situation poses significant challenges for KTM dealerships, which may need to offer substantial discounts to move inventory, potentially leading to considerable losses. Critics note that the company's recent strategy has overlooked opportunities in the low-displacement motorcycle segment, which could have helped attract new customers and boost sales.