KTM in Crisis: 21% Sales Drop and 800 Million Euros in Losses in 2024
The year 2024 is certainly one for Pierer Mobility to forget. The Austrian group, owner of KTM, Husqvarna, GasGas, and MV Agusta, reported catastrophic results. A staggering drop of 21% in sales and a loss of €800 million in revenue is tough to swallow. The preliminary report for the financial year 2024 highlights a challenging situation for the company, especially for KTM, whose numbers have tumbled. Let’s dive into the figures and the reasons behind this debacle.
A 21% Drop in Motorcycle Sales
Pierer Mobility has never experienced anything like this. In 2023, the Austrian group sold no less than 372,511 motorcycles, but in 2024, sales dropped to just 292,497. That’s huge. The bikes didn’t sell, and the reasons are manifold. There’s talk of a market struggling to bounce back from the pandemic, as well as strategic choices that didn’t pay off.
The biggest hit came from Europe, which still makes up a significant portion of sales (38% of the total, or 110,000 motorcycles). However, even in regions like North America (24%) and India/Indonesia, through their partner Bajaj (21%), KTM couldn’t maintain its market share. It’s as if the bikes are losing their place in a world where expectations are rapidly changing.
Factory Shutdowns and Mass Layoffs
The toughest part is the real-world impact of this situation. Pierer Mobility had to shut down its factories and furlough more than 1800 employees. It’s a hard blow for the brand and those working on the production lines. With a loss of €800 million, the immediate future of the group looks grim.
Imagine the struggle: a group making huge investments in innovation only to see its numbers plummet. On one hand, engines are revving to churn out new motorcycles, but on the other, customers are absent. It’s like a motorcycle race where you hit the brakes at every curve, not knowing how it will end.
Revenue Plunge: -29% in 2024
Alongside the decline in sales, the company also reported a 29% drop in revenue. In 2023, Pierer Mobility raked in €2.7 billion, but this year, it fell to €1.9 billion. That’s quite a blow, isn’t it? To top it off, forecasts are far from reassuring: there’s talk of potential net debt rising in the second half of 2024.
Motorcycles are no longer selling as much, and on top of that, the group faces a deficit exceeding €300 million for the first time in a long while. It’s the kind of crisis that could shake an entire group, and indeed, Stefan Pierer, the company’s leader, couldn’t withstand the pressure and had to step down.
Reasons Behind This Mishap: Where Did It Go Wrong?
The pandemic has left its scars, that’s for sure. But beyond that, questions arise regarding the group’s strategy. KTM made significant investments in new motorcycles and technologies, yet demand seems to have slowed down. In a world where riders’ budgets are getting tighter, every purchase becomes a calculated decision, far from impulse buys.
Meanwhile, competition has intensified with brands that have adapted more quickly to market expectations. So, it’s no surprise that KTM is facing difficulties, especially when you look at how the motorcycle industry is evolving with the rise of electric bikes and new eco-friendly trends.
