Bajaj Auto boss Rajiv Bajaj doesn't do things by halves. In a recent interview with CNBC-TV18, he said out loud what many have been whispering: " European manufacturing is dead " The KTM workers in Mattighofen are still shuddering.
KTM, marked by a major financial crisis, accumulated a debt estimated at between 1,8 and 2,2 billion euros before filing for bankruptcy at the end of 2024. The observation is clear: between monstrous stocks (up to 182 unsold motorcycles at the end of 000) and temporarily halted production, KTM is at a turning point.
Bajaj does not propose lukewarm solutions. It advocates a two-step reform: first, redefine KTM as a premium brand, purify the product ranges (“too many variations kill the brand”), and refocus efforts on the essentials.
Then, drastically lower production costs, which could involve transferring the assembly outside Europe. Bajaj cites Triumph as an example, whose production has largely migrated to Asia.
« For example, Triumph moved 100% of its production to Thailand 15 years ago. If Triumph could do it, why couldn't KTM? »
Bajaj adds a shocking observation: the KTM Made in India earn EBITDA in excess of 30% — a figure that's hard to ignore when looking at margins.
KTM's reactions in Europe: denial or panic?
The reaction from Mattighofen was mixed. KTM CEO, Gottfried Neumeister, tried to calm things down by declaring on GPone that " no relocation plan was under consideration at the moment " A statement that sounds like a firm counterpoint... but which struggles to dispel the concern, as the words of Bajaj resonate loudly.
The vision of Bajaj is ambitious, but it poses a major question: what future for KTM if Europe loses its role as an industrial and technological base?
Moving production to India could ensure profitability, but at the risk of undermining the “Made in Austria” image that has long embodied KTM’s identity. Moving the factory also potentially means sacrificing the historic heart of Austrian motorcycling—and leaving thousands of jobs up in the air. And above all, suggesting that European production is “moribund” reignites the debate over the soul of the Styrian trigram: a brand of passion born in Mattighofen, or simply a globalized factory of premium motorcycles?
Bajaj said it : " Yes, we need to revive KTM. Yes, we need to save it. But that requires a total reset: costs, a brand, an organization.. » The coming months will tell if this “reset” will be a rebirth for KTM…or a painful break with one’s roots.
