KTM is going through a troubled period. Sales are falling sharply, the company’s public image is fragile following controversial statements about camshaft problems and subsequent rectifications, and the company’s leadership appears to be in disarray. Pierer, KTM’s parent company, has even taken drastic action against the group’s board of directors, something unusual in the business world, where an executive’s position is rarely questioned.
Even more worrying for the company’s future is the apparent lack of understanding by KTM’s decision-makers of the needs of the market. The company persists in its usual strategy of developing and trying to sell expensive motorcycles, with less than encouraging results. The recent launch of the 1390 Super Adventure S (Evo) ahead of the new 390 Adventure series is a case in point. We’re talking about a bike with a high price tag of €25,000 (according to RideApart) that only a privileged few can afford or want, compared to a €7,500 model (according to the same source) that has probably sustained the company.
There’s no denying that the new 1390 Super Adventure S Evo has interesting features: it’s a technologically advanced bike, it has impressive power, it’s designed to cross continents quickly. Its versatility allows it to perform well both on the road and on the track or, with suitable tires, off-road. However, these qualities, combined with a predictably high price, are unlikely to result in significant sales. At a time when KTM’s sales are already struggling, prioritizing the 1390 over the future 390 series is… a questionable decision.
Although high-powered models have their allure, their daily use is limited. The power offered by these large-cylinder motorcycles is clearly too much for everyday commuting or even for riding on winding roads.
Today, the most successful brands are those that focus on low-cylinder bikes at affordable prices, such as Triumph, Royal Enfield, Bajaj and CFMoto – the latter two manufacturers of part of the KTM range – which are exceeding expectations and recording unprecedented sales. The reasons are essentially twofold: price and practicality.
What’s more, the potential buyers who can afford these machines are in an age group where they are no longer looking for more radical behavior. These consumers don’t need motorcycles with more than 200 horsepower, preferring more balanced and fun models of medium or low displacement.
It’s in this context that KTM’s launch schedule reveals its inadequacy to the market, or at least its apparent disconnect from reality, perhaps it’s “just” a strategy… wrong?! Most new motorcyclists – the future of KTM’s customer base – are looking for bikes that are affordable, easy to ride and have the potential to evolve. They favor stable models, without unnecessary technology and, above all, with affordable prices.
This trend extends to other segments of motorcyclists who, faced with high interest rates, stagnant wages and political uncertainty, are choosing to postpone major investments. The difficulties experienced by Polaris and Harley-Davidson are examples of this.
KTM is due to present the new 390 series at EICMA in the next few days, so it would have been possible to reverse the order of the 1390 and 390 launches. This would demonstrate a better understanding of the future of the market, favoring smaller, more affordable bikes that could attract new loyal customers to the brand. The sales figures for KTM’s smaller displacement models would certainly justify this strategy.
However, the company persists with a strategy that clearly doesn’t work, clinging to the outdated idea that its forte is large-cylinder motorcycles. This limited vision suggests that KTM is unlikely to recognize its mistake in time to give the 390 series the prominence it deserves in the coming weeks. Social networks and specialized forums clearly show more interest in the yet-to-be-released 390 than in the new large-cylinder model.
There is, however, a possible light at the end of the tunnel. With the current difficulties of KTM’s parent company, there may be an opportunity for Bajaj to acquire a controlling position. This company, which has shown excellent results by focusing on motorcycles that the market is looking for, could, given its partnership with KTM, refocus the struggling brand, as happened with Royal Enfield and Triumph.