Think back, if you can, to early January. Back then, times were extremely uncertain for KTM, and no one quite knew what would come of the mega Austrian brand's struggles. Opinions are naturally wide and varied among any group of people, but generally speaking, no one wants to see an OEM go down. But we'd be lying if we said we weren't worried; plenty of people were.
But it was in January when details of three possible investors to help bail KTM out of its massive 2.9 billion Euro financial hole (estimated) first arose. One was a Chinese private equity firm, while the other two were names that KTM fans likely already know as they've been deeply involved in KTM for several years. Both CFMoto and Bajaj were reportedly in talks to invest significant sums of money in keeping KTM and its parent company, Pierer Mobility AG, from the brink of disaster.
Fast-forward to April, when Bajaj Auto International Holdings invested €50 million into Pierer Bajaj AG (PBAG). As Indian business channel CNBCTV-18 describes it, "The investment consists of 500 bonds, each valued at €100,000. The bonds grant holders the right to convert them into PBAG shares between June 1, 2025, and February 29, 2028. If not converted, the bonds will be redeemed at their principal value on March 31, 2028."
With that in mind, the later-April news is that KTM will cease distribution of CFMoto and its EV sub-brand Zeeho in Europe and the UK seems like awfully convenient (or inconvenient, if you're CFMoto) timing. So the question becomes, did the massive influx of Euros from Bajaj have any impact on KTM's previous CFMoto distribution deal, which has been in place since 2022?
Neither KTM nor CFMoto (nor Bajaj, for that matter) has said words to that effect publicly, of course. And why would they? In any case, whatever the reasons behind the scenes might be, KTM has officially announced that as of May 31, 2025, it will no longer distribute CFMoto or Zeeho products in Austria, Germany, Spain, Switzerland, or the United Kingdom. New, as-yet unnamed importers will have to take over distribution at that point.
KTM also notes that its joint production agreement with CFMoto in China will be unaffected by this change in terms, and will continue as it has. Additionally, CFMoto will continue to distribute KTM's motorcycles in China.
While we can't say for sure how all these twists and turns will work out, the one thing we can say with confidence is that this saga appears far from over, so stay tuned.
