A couple of weeks ago, we wrote a comprehensive report on what went wrong with KTM. While we covered most of the facts in the public domain at that time, it seems that KTM has more problems than we initially thought.
According to the German publication Der Standard, citing court documents, KTM has an unsold inventory of 265,000 motorcycles. This is nearly one full year of sales volumes in warehouses, and working capital. Our previous analysis estimated this to be about four months of inventory.
Der Standard also raises the debt estimates to EUR 1.8bn (from EUR 1.5bn in Pierer Mobility’s H1 2024 report).
What is now public is that the recently acquired MV Agusta is up for sale again, as Pierer needs the cash. KTM-Husqvarna also plans a fire sale of the motorcycle inventory – almost all of these would be the 400cc+ and motocross models, as the smaller single-cylinder ones come from Bajaj in India.
About 300 employees would be affected, and Pierer Mobility needs a cash infusion of upwards of EUR 300m to start with.
Impact
Depending on how you look at it, this is a nightmare or a slow-moving train wreck, which leaves us with many questions. Stefan Pierer is credited with resurrecting KTM from the dead over several years, so it becomes difficult to fathom how he and his leadership team had several bad weeks at the office, making rather questionable decisions.
It would be surprising if Pierer still holds majority control of KTM on the other side of this. A broader restructuring has already been initiated, with CitiGroup Global Markets AG retained to restructure the group’s ownership.
Bajaj Chetak Gen-2: The 35 range
Considering the December 2024 sales data in isolation, Bajaj Chetak is India’s best-selling electric scooter. This is an extraordinary month, as Bajaj has finally edged past Ola Electric in sales.
Bajaj has launched the Chetak Gen-2 to add to the momentum. This generation has three models: 3501, 3501, and 3503. The 35 indicates the 3.5kWh battery size.
While the exteriors of the new Chetak look the same as the old model, this is a comprehensively changed scooter. The frame is all-new, and the wheelbase has been stretched. This allows the battery to move under the floorboard and also grow in size. The battery is also encased in Aluminium, though it is not structural. The increased dimensions also mean the seat is longer, the floorboard is bigger, and the new Chetak offers 35 liters of under-seat space. Bajaj says that it is the biggest under-seat space in the market.
The motor specs remain the same, though Bajaj said they had rewound the motor to make it more efficient. The top speed is maintained at 73kph. The new Chetak has a claimed range of 153 km.
On the top model 3501, the 950W charger is onboard. This saves space inside the boot that the offboard charger would otherwise occupy.
The new Chetak also comes with a touch TFT, something Bajaj has shied away from until now.
The improvements and changes mean that the Chetak now bests most of the competition on everything except acceleration and top speed.