A Surprising Result for KTM
In a recent interview with Le Repaire des Motards, Pierer Mobility Group’s CEO Stefan Pierer said that KTM reacted early on to the pandemic and actually has not seen much of an issue with its sales since reopening. He said that his company has actually hired more people since the pandemic.
When asked how the unexpected COVID-19 pandemic impacted KTM and the other brands under the Piere Mobility Group’s umbrella Pierer said this:
“It was not unexpected! As an international company, we have connections all over the world and we saw very early on that there was a problem from China because it prevented our customers from buying our products in the Asian markets. When it started to cause problems with our Italian supply chain for the parts of the motorcycles we build here in Mattighofen, I had already planned to stop production in mid-March.“
He said that Austria chose to shut down businesses ahead of his decision and that it was one of the countries to do so early on. That allowed KTM to get back up and running quickly and not see much of an impact. In fact, he said it’s actually been the opposite.
“Fortunately for us, the powered two-wheeler industry is thriving to some extent after the Covid,” said Pierer. “In all the countries that have reopened since containment, there is an increasing demand for our products.”
Pierer said that many people are buying motorcycles and two-wheeled vehicles in the wake of COVID-19 because they don’t want to ride public transit or be confined in a vehicle with other people. This is happening in many markets around the world.
Pierer also said that despite the fact that KTM has all of the same challenges that other companies KTM is in a position to surpass some of its competitors. “Sooner or later, I want to become No. 1 in Europe in terms of registrations. We are already on the podium, so going up a step is my next ambition.”
He also said that during the shutdown his brands basically missed out on producing 30,000 bikes. He called them “lost.” Pierer said that they may be able to make up 15,000 this calendar year if they ramp up production with overtime, but otherwise the company just took a bit of a hit there in terms of what it could have made this year.
The important thing to remember is that KTM is making sales and its products seem in high demand. Pierer seems pretty hell-bent on becoming the number one motorcycle manufacturer in Europe, and right now I wouldn’t doubt him.
NOTE: Translation of quotes by Google Chrome.