By: Upshift Staff
Photos: KTM
When Bajaj Auto officially took over KTM, the motorcycle world braced for changes. Cost-cutting? Sure. Strategy shifts? Expected. But what few anticipated was Rajiv Bajaj publicly calling out years of corporate excess and mismanagement, in words most executives would never say out loud.
“KTM’s problem was greed,” Bajaj told reporters in a recent interview.
That’s not a vague corporate-speak press release. That’s a truth bomb. And for riders, enthusiasts, and KTM owners, it reads like someone finally said what they’ve been whispering behind the scenes for years.
The Quiet Part Out Loud
Bajaj didn’t sugarcoat it. KTM, a brand that built its reputation on lean, race-bred motorcycles, had become top-heavy. According to him, the company employed 4,000 people, but only 1,000 were actually building bikes, while the rest worked in administrative roles, marketing, or management. Years of unchecked decision-making, over-expansion into unrelated markets like bicycles, and overproduction of motorcycles had created a precarious financial situation. In short, KTM was living beyond its means, and Bajaj isn’t pretending otherwise.
He outlined three types of greed that contributed to KTM’s woes:
Operational greed – overproduction of motorcycles and racing programs that didn’t match demand.
Strategic greed – expansion into side markets and ventures that distracted from the brand’s core mission.
Governance greed – unchecked decision-making that lacked accountability.
This combination of excess and mismanagement, Bajaj said, created the perfect storm, ultimately forcing drastic budget cuts across racing, development, marketing, and general operations.
The Racing Budget Hit
The most visible consequence of this overhaul is a 50% reduction in KTM’s racing and development budgets, impacting MotoGP, off-road racing, R&D, and marketing initiatives. Racing isn’t just PR for KTM—it’s the lifeblood of the brand. Orange motorcycles on MotoGP grids, Dakar Rally podiums, and off-road circuits have always been the ultimate proof of KTM’s credibility. Cutting funding in these areas is a bold, high-stakes move.
For riders and fans, this raises real questions about the future. Will the next generation of KTM bikes still reflect the same innovation and performance? Could cost-cutting trickle down to parts, service, and customer support? And most importantly, will KTM’s racing DNA—the soul of the brand—survive a leaner budget?
KTM Owners Have Been Seeing the Cracks
Spend time on KTM forums and social media, and you’ll notice recurring themes among riders: inconsistent customer service, reports of minor quality issues in new bikes, and concerns that the premium pricing isn’t always matched by the ownership experience. In other words, the “quiet part” Bajaj just announced has been visible to owners and fans for some time.
One forum user summarized it bluntly: “KTM’s been acting like a premium brand, but customers aren’t always getting a premium experience.”
What a Leaner KTM Could Mean for Owners
From an owner’s perspective, Bajaj’s approach has both upside and downside. A leaner KTM could return to its roots, focusing on high-performance bikes that truly reflect its racing DNA. Cost savings might improve pricing or value for owners, and removing corporate bloat could allow the company to innovate more efficiently in areas that actually matter to those who ride and maintain these bikes.
On the other hand, reduced racing budgets could limit the brand’s visibility and weaken its emotional connection with owners. Cost-cutting could also affect parts availability or service if not carefully managed. Some potential buyers may put off purchases, concerned about resale value or long-term brand stability.
The challenge for KTM will be maintaining its racing pedigree and premium perception while navigating these cuts. Owners want the bikes, the performance, and the heritage—but they also want confidence in service, support, and quality. Balancing those demands will determine how successful this “reset” really is.
The Bottom Line
Bajaj’s message is clear: KTM has been mismanaged, and the days of unchecked growth are over. For the first time in a long time, a top executive has publicly acknowledged the brand’s weaknesses.
For owners, it’s a reality check. Loyalty will be tested, but for those who love KTM for its performance and racing heritage, this might be the shake-up the brand needs. The next chapter will reveal whether KTM can keep the orange flame burning while finally balancing the books.
One thing is certain: Bajaj just said the quiet part out loud, and now KTM has to live up to it.
