Austrian motorcycle manufacturer KTM has found itself at a crossroads, both financially and competitively. As the manufacturer faces financial struggles and a challenging start to the 2025 season, the company is determined to prove itself, sending out a bold message: watch us.

Finance

In late 2024, KTM was on the edge of collapse, entering self-administration due to debts exceeding €2 billion. However, since then, the company has taken a big step toward recovery. KTM's restructuring plan, which requires it to pay back 30% of its debts, was approved, meaning the brand must gather €548 million to clear its obligations. On a positive note, the company has reportedly received investment pledges of up to €900 million from at least 23 different sources. Additionally, a financial boost of €50 million from Bajaj Auto should help restart production.

With long-time CEO Stefan Pierer stepping down, KTM is now under the leadership of Gottfried Neumeister, who is determined to guide the brand toward a more stable future. KTM addressed its struggles with a full-page newspaper advertisement in Austria's Kronen Zeitung, titled "Passion Never Goes Bankrupt." The ad acknowledged KTM's recent missteps while promising a strong comeback. "We were too fast and crashed out of the corner. But we’re getting back on our feet. The race goes on," the statement read, emphasizing the company’s commitment to innovation.

READ MORE: KTM’s restructuring plan approved – what’s next for the company?

Rough Start

While KTM fights for stability off the track, it also faces a battle in MotoGP. The 2025 season opener in Thailand was disappointing, with top rider Brad Binder finishing eighth and rookie Pedro Acosta crashing early in the race. Although Acosta rejoined, he couldn't fight his way up the rankings. KTM’s struggles were evident, particularly with rear tire degradation, which Acosta described as "not normal." Binder also admitted he had to ride "extremely soft" to manage tire wear.

However, KTM’s issues extend beyond this race. The last time the manufacturer made a significant breakthrough with its RC16 bike was back in 2020. While the bike has remained competitive, it has yet to take a step forward substantial enough to challenge other manufacturers. The Thailand Grand Prix only reinforced concerns that KTM has not made enough progress over the off-season.

So what´s next

Despite its financial struggles, KTM insists that its MotoGP program will remain well-funded and supported. However, the combination of underwhelming performance and corporate restructuring raises questions about its long-term ambitions in the championship. Team boss Aki Ajo remains optimistic, saying, "We know we need to improve in these types of climates, but when it’s cooler, we are competitive. We are learning, and in this way, I’m happy."

Still, KTM's start is far from ideal for the company and its aspirations. If the Thailand results represent their worst performance this season, there may still be some hope. But if this is their new standard, the season ahead will be long and challenging.

Yet, KTM has made it clear that it refuses to back down. "To everyone who doubted us… watch us!" the company declared in its latest advertisement. Now, it's up to KTM to prove it—both in business and on the racetrack.