KTM has always worn its racing heritage like a badge of honor. But last year, the brand found itself in an unfamiliar and humbling position: spiraling from success into chaos. After years of aggressive expansion, KTM was set to enter the fight of its life. There were many causes for its troubles, but miscalculating the post-pandemic market was at the top of the list.
Suffice it to say that the company paid dearly for it.
Pierer Mobility AG admitted that it had significantly overestimated demand. Production outpaced sales by a wide margin, and warehouses began to fill up with unsold motorcycles. At one point, KTM was sitting on more than a year’s worth of excess inventory, leading to production slowdowns and temporary shutdowns at its Mattighofen plant.
