KTM is going through a difficult time, and the management seems to admit the difficulties. This is why 2024 will be a complicated year for them.
The motorcycle market in Italy has shown encouraging signs in recent months, with a clear growth in sales, but not everyone can smile. A report produced by Pierer Mobility, which controls the KTM, Husqvarna, GasGas and MV Agusta brands does not bode wellbut rather, it draws attention to a situation that would be a real crisis.
This would be caused by a series of reasons, such as the excessively volatile market in Europe and the high interest rates in the United States of America. Here is what was announced by the two-wheel giant: “In the current financial year, the growth of the main markets of Pierer Mobility motorcycles in Europe and the USA has slowed down significantly. Among the causes are the increase in interest rates in the United States of America, which will remain very high, which will have a negative impact on our sales expectations. Sales figures in Europe are also volatile“. The situation is not at all rosy for KTM and the entire group, as can be understood by reading the rest of the report.
KTM, here’s what’s happening
Few could have expected such a complicated phase for a giant of the caliber of Pierer Mobilitywhich has in the brand KTM its diamond tip: “Going to generalize, Pierer Mobility sales will not reach expectations for this yearafter three consecutive years of success above what we could wait“.
The note further states: “All of this means dealers will have to reduce their inventories and continue to commit considerable capital. Our group is continuing its efforts to strengthen its dealer structure, through extended payment terms and higher discounts. These measures will have a significant impact on EBIT and the financial result for the current year. Production costs in Europe have increased, due to high wage agreements, but also new regulations and bureaucracy. All this has put competitiveness to the test“.
KTM, therefore, is experiencing a very delicate moment, and given the increase in production costs in Europe, is pushing for more agreements with Asian giants, such as Bajaj Auto in India and CF Moto in China, to the detriment of the European market. Certainly, the situation does not suggest anything good.
