KTM will continue building its motorcycles at the company’s headquarters in Mattighofen, Austria. CEO Gottfried Neumeister has given a clear commitment to the Austrian production base, addressing rumours that manufacturing could be transferred to India after Bajaj Auto took control of KTM in 2025.

The decision comes after approximately 18 months of serious upheaval for the Austrian manufacturer, beginning around this time in 2024. KTM accumulated major debt and dismissed hundreds of employees, while creditors and Bajaj Auto intervened to help stabilise the business. The company has since returned to profit for the first time in almost two years and sold nearly 100,000 motorcycles during the first half of 2026.

That recovery has also strengthened KTM’s wider plans. The manufacturer says its MotoGP project has been renewed for another five years, although retaining the programme required Neumeister to persuade Bajaj that racing and the broader motorsport activities remained strategically worthwhile. He said the Indian company initially viewed the business through the cost-sensitive commuter market, where different priorities apply, and that several trips to India were needed to secure its backing.

Austrian production and an independent team

Neumeister also said he had received approval from the top of the organisation to establish an independent team. In his account, Bajaj has not taken over KTM’s management. The production decision is therefore paired with a motorsport structure that KTM intends to develop on its own terms, while keeping the five-year MotoGP commitment in place.

KTM’s technical base remains central to that effort. More than 440 engineers are working on the company’s products, which Neumeister presents as capable of setting new standards. He wants KTM to regain its place among the leading motorcycle brands globally, with particular emphasis on Europe, but the next phase will not be measured by sales volume alone.

Neumeister pointed to losses reported by other European manufacturers during the first half of the year and said KTM is outperforming the market, despite recovering from a lower starting point. He also said the company’s new products are being well received. His stated priority is profitability first: KTM must become profitable before it can expand the business further, and he considers the company to be moving in the right direction.