Cut Costs And Savings, Most Of KTM Production Moves To China

KTM 990 Duke 2024. (Doc. KTM)]

JAKARTA - Pierer Mobility Group as the parent of a KTM motorcycle moved part of its motorcycle production to China including research and development centers.

Quoted from the Cycleworld page, Wednesday, December 27, the company will also cut 300 workers at its current production plant in Austria, and will shift production to its Indian partnership, through Bajaj.

This step is also taken to focus activities on four motorcycle brands that are members of the Group: KTM, GasGas, Husqvarna, and MV Agusta.

In addition, the company also continues to produce KTM in Europe but its capacity is smaller than before, and is carried out as part of Pierer Mobility AG's strategy to increase profitability.

According to the company, this is also based on a sharp analysis of the economic and financial situation in Europe, with 2024 expected to contract compared to 2023.

Later Pierer Mobility Group and CFMoto plan to increase joint production activity from 50,000 to 100,000 units, and are quite optimistic that the target set is still at a level like 2023.

As additional information, after acquiring the original Austrian KTM brand, Pierer Mobility Group has grown to become Europe's number one two-wheeled producer with a total of 190,293 motorcycles sold in the first half of 2023, with an increase in sales volume of 16.5 percent compared to the same period in 2204.

Meanwhile for 2024, Pierer Mobility Group is determined to further increase its position and sales volume, one of which is by promoting the production of Husqvarna and GasGas electric bicycles.