In a seismic shift for the European motorcycle market, KTM announced in April 2025 that it would terminate its distribution partnership with Chinese manufacturer CFMoto effective May 31, 2025.
The move impacts five key markets—the UK, Germany, Austria, Switzerland, and Spain—marking a strategic retreat for Pierer Mobility AG (KTM’s parent company) as it battles financial turbulence.
With a renewed focus on its core brands—KTM, Husqvarna, and GasGas—the Austrian powerhouse aims to streamline operations amid a court-supervised restructuring. But what does this mean for dealers, riders, and the future of these two industry players?
Background and Partnership
The KTM-CFMoto alliance began in January 2023, when Pierer Mobility AG took over European distribution for CFMoto, leveraging its premium dealer networks to fast-track the Chinese brand’s growth.
The deal covered 11 models, including the adventure-focused 450MT and electric Zeeho scooters, promising a symbiotic relationship. However, the partnership’s backbone lies in their joint venture (JV) in China.
Since 2017, CFMoto has manufactured KTM’s mid-range 790 Duke and Adventure models at a state-of-the-art facility in Hangzhou. This JV remains intact, underscoring its strategic value compared to the now-defunct European distribution deal.
Meanwhile, CFMoto’s North American operations remain unaffected, with independent distribution under CFMoto USA ensuring stability for U.S. riders.
Financial Imperatives Behind the Split
KTM’s decision stems from dire financial straits. In late 2024, Pierer Mobility entered a 90-day self-administration process after creditors filed claims exceeding €1.4 billion.
By February 2025, a restructuring plan requiring €600 million in fresh capital was approved, with creditors accepting a 30% payout quota—far better than the 14.9% recovery expected in liquidation.
CEO Gottfried Neumeister stated, “We’re focused on securing KTM’s future by concentrating resources on our core motorcycle brands.”
The move aligns with cost-cutting measures, including divesting non-core assets like MV Agusta and slashing 1,800 jobs. Asian partners Bajaj Auto and CFMoto are expected to inject critical funding, potentially reshaping Pierer Mobility’s governance in the long term.
Dealer and Rider Impact in Europe
Until May 31, KTM’s subsidiary, CFMOTO Motorcycles Distribution GmbH, will handle dealer and customer support. Post-cutoff, new importers—yet to be named—will take over, raising concerns about parts availability, warranty processing, and model deliveries.
German outlet Motorrad highlighted pre-existing bottlenecks for CFMoto’s 450MT in KTM-managed markets, suggesting the split could ironically improve supply chains.
Still, dealers face uncertainty. “Transitioning to a new importer mid-season is risky,” a UK-based dealer anonymously noted. “Will parts and bikes arrive in time for peak riding months?”
Community Reactions and Expert Voices
Online forums exploded with speculation. On Reddit’s r/AdventureBike, riders debated whether CFMoto initiated the split to escape KTM’s “sinking ship” or vice versa. Others questioned if KTM’s restructuring would stabilize its troubled quality control reputation.
Industry analysts see silver linings. “This simplifies KTM’s narrative for investors,” said a RideApart source, noting Bajaj Auto’s €50 million production-funding bond in April 2025. “Focusing on core brands could sharpen their competitive edge in the mid-range ADV segment.”
Implications for U.S. Motorcyclists
For Americans, business continues as usual. CFMoto USA operates independently, with no announced changes to its dealer network or pricing. However, eagle-eyed riders might spot surplus EU models entering grey markets, though experts downplay this due to differing emissions standards and warranty complexities.
Meanwhile, KTM’s renewed focus could accelerate stateside launches of Husqvarna’s Norden 901 or GasGas ADV lineup—models needing R&D bandwidth previously strained by non-core ventures.
Future Outlook and Watch Points
All eyes are on CFMoto’s next move. The brand must swiftly appoint European importers—likely established players like the KSR Group—to avoid sales slumps. For KTM, the clock ticks toward a May 23, 2025 deadline to secure €600 million in financing, with Bajaj and CFMoto poised to deepen their stakes.
Globally, CFMoto marches on. Already in 100+ markets and fresh off a Yamaha JV for electric scooters, its 800MT—a KTM 790 Adventure rival—exemplifies its ascent from a “budget brand” to a legitimate contender.
CFMoto 800MT-X
Conclusion
KTM’s split with CFMoto underscores a pivotal moment: a storied European brand fighting for survival while its Chinese partner accelerates toward global dominance.
For dealers and riders, 2025 brings transition pains but also potential gains—streamlined operations, better-supplied showrooms, and fiercer competition.
As Europe’s distribution map redraws, U.S. enthusiasts can relax, knowing their market remains steady—for now.
