KTM’s future hopes brighten as proposed investment nears €1 billion

KTM’s hopes of securing fresh capital from external investors looks to have taken a boost as rumoured contributions are said to be around €900 million.

The Austrian manufacturer entered into self-administration at the end of November in a bid to stave off bankruptcy amid a major financial crisis.

Various efforts have been made to ensure survival, including a temporary freeze on production until February, the scaling back of its work force and a reduction in its racing activities in 2025.

An initial creditors hearing in December concluded that KTM’s restructuring could continue, though doubt about its future in MotoGP is significant as a withdrawal is said to be “planned” - with reports in Austrian media suggesting this could come in 2026.

KTM has confirmed that its MotoGP project will carry on as planned in 2025, though its GASGAS and Husqvarna brands have disappeared from the grand prix grid.

In recent weeks KTM is reported to have gained significant interest from outside investors to help raise the money it needs to pay off the 30% of its debts - which stands at a confirmed €1.8 billion.

According to a fresh report from GPOne, KTM investors are thought to have pledged around €900 million.

Current shareholders Bajaj Auto and CFMoto are thought to be increasing their investments, while GPOne reports that several private equity firms could also get involved.

As KTM’s situation has gained some positivity in recent weeks, its share prices have boosted in response.

KTM will face creditors on 25 February in a meeting where its restructuring plan will be voted on.

At the Aprilia launch last week, the Italian brand’s CEO says KTM’s situation is a warning MotoGP must heed as it’s proof that many elements of the series are still too expensive.

Rivola also expressed his confidence that KTM would not be forced into leaving the MotoGP grid by its current financial crisis.

KTM motorsport boss Pit Beirer revealed earlier this month that the brand was acting on a 100-point plan to save the racing side of the business, which includes reducing its number of factory riders to 40 for 2025.

The brand kicked off its 2025 season with victory in the Dakar Rally.