The Rise and Fall of KTM in India: Can It Make a Comeback?

A few years ago, KTM was not just a motorcycle but a dream for every Indian youngster. Its roar turned heads on the streets, Instagram posts of KTM bikes were flooded with comments, and its unmistakable sound announced its arrival from afar. With a killer combo of performance, style, and thrill, KTM ruled the hearts of Indian youth. But today, the same KTM is fading into obscurity. Showrooms are eerily quiet, dealerships are shutting down, and bikes that once had waiting lists struggle to find buyers. Some even mockingly call it the "chhapri bike." So, what went wrong with the brand that once set the Indian biking scene on fire? And does KTM have a secret weapon to stage a comeback? Let’s dive into the full story of KTM’s rise, fall, and potential revival.

Chapter 1: The Birth of KTM and Its Arrival in India

KTM, a brand synonymous with performance biking, hails not from India but from a small European country, Austria. In 1934, engineer Hans Trunkenpolz started a modest repair workshop, laying the foundation for KTM—Kronreif & Trunkenpolz Mattighofen. Initially, KTM built rugged motorcycles designed for rough terrains. By the 1990s, it reinvented itself as a symbol of speed, performance, and bold style.

KTM’s Entry into India

In 2007, Indian two-wheeler giant Bajaj Auto acquired a 14.5% stake in KTM. This partnership was a win-win: Bajaj wanted to strengthen its grip on the performance bike segment, while KTM eyed India’s promising market with its young, trend-savvy buyers. In 2012, KTM officially entered India with the launch of the KTM Duke 200, priced at just ₹1.17 lakh. This sporty, aggressive, premium-looking bike at an affordable price revolutionized Indian biking.

KTM’s marketing was spot-on. Instead of focusing on mileage or comfort like traditional commuter bikes, KTM positioned itself with a “Ready to Race” tagline, tapping into the aspirations of thrill-seeking youngsters. Aggressive TV ads, social media campaigns, and bold branding made KTM a cultural phenomenon. The Duke 200 became an overnight sensation, redefining performance biking in India.

Chapter 2: The Golden Era of KTM

The KTM Duke 200 wasn’t just visually stunning—it delivered an unmatched riding experience. Its lightweight frame made it agile in city traffic and a beast on winding mountain roads. KTM’s core DNA—performance, aggression, and racing spirit—set it apart from competitors like Pulsar, Apache, and Karizma, which were previously considered performance kings.

Cultural Impact: KTM became a status symbol on college campuses. YouTube was flooded with KTM stunt videos, and the bike became a staple in biking culture.
Expansion: Riding on Duke 200’s success, KTM opened showrooms in metro cities. In 2014, it launched the Duke 390 (priced at ₹2.5 lakh), setting a new benchmark with its 390cc liquid-cooled engine, 44 BHP power, and features like a slipper clutch. The RC series, with its aggressive looks and race-like feel, further cemented KTM’s dominance.
Legacy: KTM didn’t just sell bikes; it introduced India to an international performance biking culture, from long mountain rides to YouTube bike reviews.

At its peak, KTM was more than a machine—it was a dream for millions.

Chapter 3: The Downfall Begins

As quickly as KTM rose, cracks began to appear. The very fans who adored KTM started drifting away. This wasn’t an overnight collapse but a result of multiple missteps by the company.

Key Issues

Lack of Practicality:
- KTM bikes were designed for performance, not daily usability. Their powerful engines overheated in traffic, making city rides uncomfortable. Side panels got so hot that riders struggled to place their feet.
- Stiff suspension was harsh on India’s rough roads, tiring riders. The forward-leaning riding posture and hard, narrow seats caused back pain during long or daily rides.
- Mileage Woes: While competitors offered 40–50 kmpl, KTM’s bikes delivered only 25–30 kmpl. With rising fuel prices, this was a dealbreaker for middle-class buyers.
Skyrocketing Costs:
- Prices surged over time. The Duke 200, once ₹1.2 lakh, now costs around ₹2.3 lakh. Servicing, insurance, and parts were expensive—basic servicing cost ₹2,500–₹4,000 compared to ₹800–₹1,200 for a typical 200cc bike.
- High-performance engines required synthetic oil, with 1 liter costing over ₹1,000. Maintenance became a financial burden, turning excitement into regret.
Declining Quality:
- Early Duke and RC models were built to European standards, but as local assembly and parts production began in India, quality dropped. Tank panels loosened, fiber parts dulled, and some bikes had paint peeling or strange noises within months.
- Poor service aggravated issues. Basic parts like clutch cables took 10–15 days to arrive, frustrating customers.
Neglected Customer Support:
- Unlike Royal Enfield, which improved its service network and customer loyalty despite price hikes, KTM ignored service quality, reliability, and support. Complaints flooded YouTube, Reddit, and biking forums, but KTM failed to address them, eroding brand loyalty.

Sales Decline

In May 2023, KTM sold 5,115 units in India, but by May 2024, this dropped to 4,525—a year-on-year decline of 11.53%.
Repeat buyers dwindled. Riders who started with a Duke 200 no longer upgraded to Duke 390 or RC 390, instead switching to reliable brands like Royal Enfield, Yamaha, or TVS.

Chapter 4: Global Struggles and Missed Opportunities

KTM’s challenges weren’t limited to India. Over the past decade, it launched bikes in Southeast Asia, Latin America, and Europe but failed to adapt to local riding cultures and needs. Offering the same products everywhere ignored regional demands for reliability or affordability, weakening KTM’s global connect.

The Electric Vehicle (EV) Revolution

As the world embraced EVs, Indian brands like Royal Enfield, TVS, and Hero invested heavily in electric bikes. In Europe and the U.S., KTM’s competitors poured money into EV technology. KTM, however, remained stuck in its petrol-powered DNA. Its first electric bike, the E-Duke, never moved beyond testing, leaving KTM lagging in a fast-evolving market.

Chapter 5: Financial Crisis and Overproduction

KTM’s troubles extended beyond market image and sales to its financial health.

Overproduction: Despite falling demand, KTM continued producing bikes at full capacity, leading to excess inventory. Globally, 2.665 million unsold motorcycles piled up in warehouses, straining finances.
Cost-Cutting Blunder: To control expenses, KTM slashed its R&D budget, slowing innovation and further impacting bike quality and rider experience.
Bankruptcy Looming: KTM’s parent company, Pierer Mobility AG, faced severe financial distress, with debts of €2 billion (~₹19,000 crore) owed to creditors like Bank of China, ICBC, and Raiffeisen Bank. In 2024, it initiated bankruptcy proceedings.
Restructuring Plan: In February 2025, KTM proposed repaying only 30% of its loans, with creditors agreeing to waive 70%. Still, KTM must repay ₹5,200 crore by May 23, 2025—a daunting task.
Operational Fallout: Employees went unpaid for months, dealers didn’t receive dues, and many showrooms shut down. KTM resorted to heavy discounts and clearance sales of 2023 models to generate cash flow.

To survive, Pierer Mobility AG plans to sell assets and exit non-core markets, focusing only on key regions. However, if this restructuring fails, complete bankruptcy looms.

Chapter 6: Can KTM Make a Comeback?

Despite its dire situation, KTM hasn’t given up. The company aims to raise €800 million (~₹7,500 crore) to revive operations. Its biggest asset? Loyal partners who believe in its potential.

Bajaj Auto’s Lifeline: Bajaj invested €150 million (~₹1,435 crore) at a critical time when KTM was cash-strapped. This timely support has been a game-changer.
CFMoto’s Commitment: KTM’s Chinese partner, CFMoto, which manages its dealer network in China, pledged €350–700 million to fuel KTM’s future plans.
Confidence Restored: With partner backing, KTM boldly claims, “We are Ready to Race again.”

What KTM Needs to Do

To reclaim its glory, KTM must:

Improve practicality with better mileage, softer suspension, and ergonomic designs for Indian roads.
Enhance service networks and customer support to rebuild trust.
Invest in EV technology to stay relevant.
Balance premium pricing with quality and reliability.
Tailor products to regional needs instead of a one-size-fits-all approach.

Conclusion

KTM’s journey in India is a tale of meteoric rise, self-inflicted wounds, and a glimmer of hope. From a symbol of youth and thrill to a struggling brand, KTM’s story resonates with every Indian biker who ever dreamed of owning one. With Bajaj and CFMoto’s support, KTM has a fighting chance to reclaim its “Ready to Race” spirit.

Question: Do you think KTM can make a comeback? Share your thoughts in the comments!