KTM in crisis: 21% drop in sales and losses of 800 million euros in 2024
The year 2024 is definitely one to forget for Pierer Mobility. The Austrian group, owner of KTM, Husqvarna, GasGas, and MV Agusta, has experienced disastrous results. A 21% drop in sales and a loss of 800 million euros in revenue is hard to digest. The preliminary report for the fiscal year 2024 highlights a delicate situation for the company, especially for KTM, which has seen its numbers plummet. Let’s dive into the numbers and reasons behind this disaster.
A 21% drop in motorcycle sales
Pierer Mobility had never seen anything like this. While in 2023, the Austrian group sold no less than 372,511 motorcycles, in 2024 it only managed to sell 292,497. It’s simply colossal. The motorcycles did not sell, and the reasons are multiple. There is talk of a market that is slowly recovering after the pandemic, but also of strategic decisions that have not yielded results.
The biggest setback comes from Europe, which still represents a large part of the sales (38% of the total, or 110,000 motorcycles). But even in areas like North America (24%) and India/Indonesia, through its partner Bajaj (21%), KTM failed to maintain its market share. It’s as if motorcycles no longer found their place in a world where expectations evolve at full speed.
The closure of factories and mass layoffs
The hardest part is that this situation has concrete consequences. Pierer Mobility had to shut down its factories and temporarily suspend more than 1800 employees. A hard blow for the brand and for those working on the production lines. And with a loss of 800 million euros, the immediate future of the group looks bleak.
Imagine the disaster: a group making colossal investments in innovation that ultimately sees its numbers plummet. On one hand, we have engines operating at full capacity to launch new motorcycles, and on the other, the customers are absent. It’s like a motorcycle race where you brake at every turn, not knowing how it will end.
The revenue drop: -29% in 2024
In addition to the decrease in sales, the company recorded a 29% drop in its revenue. In 2023, Pierer Mobility had managed 2.7 billion euros, but this year it reduced to 1.9 billion euros. Quite a slap, isn’t it? And to make matters worse, the forecasts are not encouraging: there are talks of a net debt that could increase in the second half of 2024.
Motorcycles are no longer selling as much, and moreover, the group is facing a deficit of more than 300 million euros for the first time in a long time. It’s the kind of crisis that can shake an entire conglomerate, and in fact, Stefan Pierer, the head of the company, could not bear the pressure and had to leave his position.
The reasons for this disaster: where is the problem?
The pandemic left its scars, that is for sure. But beyond that, we can question the strategy of the group. KTM invested heavily in developing new motorcycles and technologies, but demand seems to have slowed down. And in a world where motorcyclists’ budgets are tighter, every purchase becomes a considered decision, far from being an impulsive buy.
Furthermore, the competition has intensified with brands that have managed to adapt more quickly to market expectations. Therefore, KTM encountering difficulties is not really a surprise, especially when observing how the motorcycle industry is evolving with the rise of electric motorcycles and new eco-responsible trends.
