The troubles don't seem to end for KTM. Barely a month after re-starting production, after a 90-day 'self-administration' period, the Austrian motorcycle manufacturer has stopped production at its Mattighofen plant. Reports suggest that KTM has stopped production until the end of July 2025. New CEO Gottfried Neumeister said that the company had parts and components to manufacture only 4,200 motorcycles but the company hasn't revealed what those 4,200 motorcycles are. With KTM's current financial troubles, the suppliers don't have the confidence that KTM will pay them back and therefore, sourcing parts is becoming a challenge for the company.
Also Read: KTM Will Not Distribute CFMoto Two-Wheelers In Europe
KTM says that it will be difficult for the company to pay back its creditors 600 million euros before the deadline of May 23, 2025 and this certainly doesn't inspire a lot of confidence in its suppliers. With the production being stopped earlier this year for three months, there were no new parts that were ordered. And now the company faces shortage of components to manufacture motorcycles.
Recently, KTM announced that from June 1, 2025, KTM will stop the distribution of CFMoto and its EV sub-brand Zeeho two-wheelers in the countries of Austria, Germany, UK, Spain and Switzerland. KTM was distributing CFMoto & Zeeho two-wheelers in the said countries since 2013. The decision is said to be 'mutual' and the manufacturing agreement between the two companies will continue as before. Also, CFMoto will continue to sell/distribute KTM motorcycles in China. Reports in EU suggest that a new importer will assume the responsibility of distributing CFMoto two-wheelers in the above-mentioned countries from June 2025.
In India, since the beginning of 2025, KTM has launched the 390 Adventure along with the 390 Enduro R in February and March, with the KTM 390 SMC R slated for a launch soon. While KTM technically does sell its big bikes here in India, its maximum sales come from its current motorcycle range of up to 400 cc.