A significant number of challenges were faced by KTM in the past year. However, amidst all the difficulties, there was one positive development: the company was rescued. Yes, the Austrian motorcycle giant was saved from potential extinction, thanks to the support of Indian motorcycle manufacturer Bajaj. This rescue has allowed KTM to continue its motorcycle production operations in the future.
The focus here is on motorcycles.
For those who may not recall, KTM had diversified its business interests significantly. In addition to its core motorcycle business, the company had a bicycle division that was not performing well and a supercar venture that did not meet expectations. Despite the X-Bow supercar being praised for its racecar engineering, it failed to generate the desired sales figures.
How bad was it? Selling only 36 units last year is a clear indication that the supercar venture was not sustainable. This is likely the reason why the newly appointed CEO, Gottfried Neumeister, is considering discontinuing the X-Bow project, as mentioned in a recent interview.
In an extensive interview with Cycle World, Neumeister emphasized the need to streamline the business operations. This restructuring process may involve shutting down the bicycle division and potentially ending the partnership with CFMoto. The decision to discontinue the X-Bow project aligns with the company's focus on motorcycles.
"The restructuring plan is centered around focus and simplicity," Neumeister stated. "We are in the process of selling the X-Bow car, as it does not contribute to our core business of selling motorcycles."
With the impending closure of the bicycle division, it is likely that the X-Bow project will also come to an end. While it may be disappointing to see the demise of the X-Bow, it is essential for KTM to prioritize profitable ventures and avoid vanity projects.
Despite the sentimental value attached to the X-Bow as a driver's supercar, practical considerations must take precedence. KTM's decision to focus on its core motorcycle business reflects a strategic move to ensure the company's long-term sustainability.