KTM has over 2,65,000 unsold motorcycles in inventory amidst financial crisis

According to reports, KTM, which is presently amidst a terrible fiscal situation has managed to garner a monolithic inventory of unsold motorcycles.

A study from a German work states that the marque has accumulated astir 265,000 unsold motorcycles - equivalent to an full year's worthy of planetary sales. The study states that the monolithic accumulation of unsold inventory stems from respective miscalculations successful accumulation strategy.

The German work stated that contempt the aboriginal signs of slowing demand, the marque continued its high-volume accumulation from the erstwhile twelvemonth - resulting successful excessive inventory. It further mentions that betwixt January 2024 to October 2024, the retention costs of the excess inventory created a monolithic liquidity request of 440 cardinal euros.

Amidst the fiscal troubles, KTM's genitor company, Pierer Mobility AG, precocious decided to driblet its bulk involvement astatine MV Agusta.

Source: RideApart

Link to Team-BHP news

Quote:

Originally Posted by Senotrius

They've started to connection those large bikes, excess inventory, present successful India. Why not spell gung ho, and connection it astatine monolithic discounts here. Flood the marketplace here, nevertheless tiny it whitethorn be. They're losing wealth anyways. Better to Get escaped of the inventory. The 890 bid astatine 7lakh ex showroom would beryllium tempting (It's 14lakh). KTM's are priced higher nowadays arsenic such. I spot much Scrambler400x than Duke 390s connected the road.

While I hold with your statement, I deliberation KTM mightiness person reasons for that:

1. The quality nonfiction is apt for the marque astatine the planetary level and doesn't correspond their show successful India.

2. If the merchandise is not competitory (in its segment) enough, terms corrections cannot lick the problem.

3. KTM's nett per motorcycle is astir Rs 22,000. Selling beneath the outgo terms isn't helping their cause.

4. Sometimes important simplification successful terms drops volition rise questions successful the minds of imaginable buyers, and this successful crook could mean lesser borderline connected the existing mediocre sales.

5. KTM is presently trying to woo a imaginable purchaser to bail them out, and the worth of the institution could besides beryllium linked to the worth of the unsold inventory. Investors besides look astatine nett margins during valuations.

These correspond lone immoderate of the speculated fewer reasons.

Importantly, KTM's products haven't importantly changed implicit the past decennary - its been much of a cosmetic / show improvements each year, doing conscionable capable to support their products updated, the lone caller class they person added is the escapade scope of products.

No wonder. When you spell to KTM showroom, nary trial thrust motorcycle is available. If it is available, it is successful precise poorly maintained information with batch of vibrations and shocking brakes not operating properly.

I was denied of trial thrust extracurricular of showroom lone due to the fact that trial thrust motorcycle brakes were not operating properly, hence it was unsafe to thrust connected the road. Sometimes 1 trial thrust motorcycle is shared betwixt 2 KTM showrooms.

Being Indian myself, I tin subordinate with the responses here. Who wouldn't privation discounts? But we request to support successful caput that, bikes are nary brinjals; they don't rot by the hour. And however would they adjacent spell astir transporting and 'dumping' worldwide banal successful India- a spot known for its Dubai-esque deficiency of income taxation and affluent radical with peculiar involvement successful opulent motorcycles (Hero Splendor remains India?s best-selling 2-wheeler successful 2024)?

KTM is not bankrupt because of 'unsold motorcycles'. Just dropping the MV Agusta stake, volition assistance them conscionable astir fractional of the liquidity requirement, which is decidedly not the archetypal happening successful their caput now, successful the archetypal place. Because they screwed up successful a batch of antithetic ways, which the nonfiction mostly skipped because, I guess, it's each alternatively boring and won't get readers excited astir discounts. Quoting (and underlining highlights) from the original German article that this nonfiction comments connected (translated by Google):

Quote:

KTM continues, investors connection up to 700 cardinal euros

The insolvency tribunal has decided that the restructuring proceedings whitethorn continue. Offers from investors are to beryllium connected the array by mid-January, 300 employees alternatively of 500 employees are to beryllium dismissed arsenic antecedently planned. The unit connected KTM brag Pierer is growing

[...]

High concern connected Pump

In summation [to the inventory build-up], investments person been made successful the past 2 years, for illustration for the financing of Pierer New Mobility GmbH, wherever the bicycle concern is located; determination were 370 cardinal euros. In addition, the bulk of the Italian MV Agusta were acquired, arsenic determination were 220 cardinal euros, and astir EUR 575 cardinal went to KTM AG's fixed assets. However, the effect could not screen each this, but alternatively had utilized indebtedness superior for it; arsenic reported, this accrued from EUR 255 cardinal (January 2023) to 1.7 cardinal euros astatine the extremity of October of this year.
Vogl cited, among different things, the financing system, which suffered negatively from currency travel if portion income fall. To this end, determination were losses successful affiliated companies, ample probe and improvement expenses and the expanding request for debt.

[...]

The accumulation prohibition has already been determined, which should beryllium astatine slightest until the extremity of February; a simplification successful moving hours to 30 hours per week and different cost-cutting programs are planned, the motorcycles successful banal are to beryllium sold off. What is planned successful the longer term: astir little worldly costs, caller proviso contracts, accrued procurement of materials from extracurricular the EU.

Further insolvency proceedings threat

The wide head expects a fig of events to beryllium insolvent longer, the wide head expects a fig of consequences successful the group, which results, among different things, from the information that KTM AG volition nary longer wage immoderate claims internally. Restructuring procedures are besides planned for the companies concerned.
According to the insolvency administrator, caller superior from extracurricular is required to guarantee that the restructuring program is to beryllium fulfilled successful the betterment plan, which KTM wants to rise with strategical investors and/or fiscal investors arsenic reported to strategical investors and/or fiscal investors. The offers oregon the connection for the introduction should beryllium fixed by the 2nd fractional of January. Vogl assumes that the introduction volition beryllium folded, which is wherefore helium considers the renovation program to beryllium fulfilled.

Financial program tin beryllium adhered to

And tin the institution spend to proceed until the planned introduction of investors?

In the abbreviated term, the institution has capable liquidity, said the wide manager, for the announced outgo of the December salaries, the abs. In the meantime, a standstill statement has been concluded with the banks and the 3 income subsidiaries, and a spot is presently being sold, which is to beryllium sold, which volition beryllium unopen down astir EUR 35 cardinal into the currency deserts. In immoderate case, the fiscal program tin beryllium adhered to.
The destiny of KTM AG present depends connected the introduction of investors. According to the insolvency administrator's report, determination are 3 declarations of intent, 2 of strategical and 1 from a fiscal investor. They are evidently consenting to loosen up to 700 cardinal euros for their entry. The sanction is known from 1 of the 3 funny parties: It is the Indian spouse of KTM AG, Bajaj, the 2nd largest motorcycle shaper successful India.

TL;DR: Production halted; banal to beryllium sold off. Most likely, Bajaj has got KTM covered.

25th December 2024, 13:08	#4
Newbie Join Date: Dec 2024 Location: Bengaluru Posts: 15 Thanked: 17 Times	Re: KTM has implicit 2,65,000 unsold motorcycles successful inventory amidst fiscal crisis Quote: Originally Posted by Senotrius They've started to connection those large bikes, excess inventory, present successful India. Why not spell gung ho, and connection it astatine monolithic discounts here. Flood the marketplace here, nevertheless tiny it whitethorn be. They're losing wealth anyways. Better to Get escaped of the inventory. The 890 bid astatine 7lakh ex showroom would beryllium tempting (It's 14lakh). KTM's are priced higher nowadays arsenic such. I spot much Scrambler400x than Duke 390s connected the road. While I hold with your statement, I deliberation KTM mightiness person reasons for that: 1. The quality nonfiction is apt for the marque astatine the planetary level and doesn't correspond their show successful India. 2. If the merchandise is not competitory (in its segment) enough, terms corrections cannot lick the problem. 3. KTM's nett per motorcycle is astir Rs 22,000. Selling beneath the outgo terms isn't helping their cause. 4. Sometimes important simplification successful terms drops volition rise questions successful the minds of imaginable buyers, and this successful crook could mean lesser borderline connected the existing mediocre sales. 5. KTM is presently trying to woo a imaginable purchaser to bail them out, and the worth of the institution could besides beryllium linked to the worth of the unsold inventory. Investors besides look astatine nett margins during valuations. These correspond lone immoderate of the speculated fewer reasons. Importantly, KTM's products haven't importantly changed implicit the past decennary - its been much of a cosmetic / show improvements each year, doing conscionable capable to support their products updated, the lone caller class they person added is the escapade scope of products. Last edited by Axe77 : 25th December 2024 astatine 18:06. Reason: Minor spacing edits.
	(1) Thanks

25th December 2024, 14:31	#7
BHPian Join Date: Apr 2023 Location: Tirunelveli Posts: 157 Thanked: 454 Times	Re: KTM has implicit 2,65,000 unsold motorcycles successful inventory amidst fiscal crisis Being Indian myself, I tin subordinate with the responses here. Who wouldn't privation discounts? But we request to support successful caput that, bikes are nary brinjals; they don't rot by the hour. And however would they adjacent spell astir transporting and 'dumping' worldwide banal successful India- a spot known for its Dubai-esque deficiency of income taxation and affluent radical with peculiar involvement successful opulent motorcycles (Hero Splendor remains India?s best-selling 2-wheeler successful 2024)? KTM is not bankrupt because of 'unsold motorcycles'. Just dropping the MV Agusta stake, volition assistance them conscionable astir fractional of the liquidity requirement, which is decidedly not the archetypal happening successful their caput now, successful the archetypal place. Because they screwed up successful a batch of antithetic ways, which the nonfiction mostly skipped because, I guess, it's each alternatively boring and won't get readers excited astir discounts. Quoting (and underlining highlights) from the original German article that this nonfiction comments connected (translated by Google): Quote: KTM continues, investors connection up to 700 cardinal euros The insolvency tribunal has decided that the restructuring proceedings whitethorn continue. Offers from investors are to beryllium connected the array by mid-January, 300 employees alternatively of 500 employees are to beryllium dismissed arsenic antecedently planned. The unit connected KTM brag Pierer is growing [...] High concern connected Pump In summation [to the inventory build-up], investments person been made successful the past 2 years, for illustration for the financing of Pierer New Mobility GmbH, wherever the bicycle concern is located; determination were 370 cardinal euros. In addition, the bulk of the Italian MV Agusta were acquired, arsenic determination were 220 cardinal euros, and astir EUR 575 cardinal went to KTM AG's fixed assets. However, the effect could not screen each this, but alternatively had utilized indebtedness superior for it; arsenic reported, this accrued from EUR 255 cardinal (January 2023) to 1.7 cardinal euros astatine the extremity of October of this year. Vogl cited, among different things, the financing system, which suffered negatively from currency travel if portion income fall. To this end, determination were losses successful affiliated companies, ample probe and improvement expenses and the expanding request for debt. [...] The accumulation prohibition has already been determined, which should beryllium astatine slightest until the extremity of February; a simplification successful moving hours to 30 hours per week and different cost-cutting programs are planned, the motorcycles successful banal are to beryllium sold off. What is planned successful the longer term: astir little worldly costs, caller proviso contracts, accrued procurement of materials from extracurricular the EU. Further insolvency proceedings threat The wide head expects a fig of events to beryllium insolvent longer, the wide head expects a fig of consequences successful the group, which results, among different things, from the information that KTM AG volition nary longer wage immoderate claims internally. Restructuring procedures are besides planned for the companies concerned. According to the insolvency administrator, caller superior from extracurricular is required to guarantee that the restructuring program is to beryllium fulfilled successful the betterment plan, which KTM wants to rise with strategical investors and/or fiscal investors arsenic reported to strategical investors and/or fiscal investors. The offers oregon the connection for the introduction should beryllium fixed by the 2nd fractional of January. Vogl assumes that the introduction volition beryllium folded, which is wherefore helium considers the renovation program to beryllium fulfilled. Financial program tin beryllium adhered to And tin the institution spend to proceed until the planned introduction of investors? In the abbreviated term, the institution has capable liquidity, said the wide manager, for the announced outgo of the December salaries, the abs. In the meantime, a standstill statement has been concluded with the banks and the 3 income subsidiaries, and a spot is presently being sold, which is to beryllium sold, which volition beryllium unopen down astir EUR 35 cardinal into the currency deserts. In immoderate case, the fiscal program tin beryllium adhered to. The destiny of KTM AG present depends connected the introduction of investors. According to the insolvency administrator's report, determination are 3 declarations of intent, 2 of strategical and 1 from a fiscal investor. They are evidently consenting to loosen up to 700 cardinal euros for their entry. The sanction is known from 1 of the 3 funny parties: It is the Indian spouse of KTM AG, Bajaj, the 2nd largest motorcycle shaper successful India. TL;DR: Production halted; banal to beryllium sold off. Most likely, Bajaj has got KTM covered. Last edited by BullettuPaandi : 25th December 2024 astatine 14:36. Reason: wording, spacing
	(4) Thanks

KTM has over 2,65,000 unsold motorcycles in inventory amidst financial crisis

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