PIERER Mobility: KTM’s Global Success and Financial Problems Explained

PIERER Mobility AG, the parent company of KTM AG, has filed to restructure the debt of KTM. The financial situation is so bad that KTM will not pay employees in December 2025.

PIERER Mobility AG is a leading European manufacturer of motorcycles and e-bikes, known primarily for its motorcycle brands such as KTM, Husqvarna Motorcycles, and GASGAS. Through a combination of innovation, strategic partnerships, and acquisitions, the company has developed a diversified portfolio spanning motorcycles, bicycle/e-bike segments, and various related design, concept development, and digitalization companies.

In 2023, the company reported revenue of € 2.7 B with about 382,000 motorcycles sold.

Who owns PIERER Mobility AG?

PIERER Mobility ownership structure diagram with Bajaj Auto and Pierer Industrie

The company operates under PIERER Mobility AG, which is a listed entity with significant shareholdings from Pierer Industrie AG (via Pierer Konzerngesellschaft mbH) and Bajaj Auto Limited (through Bajaj Auto International Holdings B.V.), and a portion in free float or publicly traded shares.

These charts are made with Lexchart for automatic organization charts.

Pierer Konzerngesellschaft mbH

A holding company owned/controlled by the Pierer family. It is a key shareholder that indirectly controls PIERER Mobility AG through Pierer Industrie AG.

Bajaj Auto Limited

An Indian multinational manufacturer of motorcycles and three-wheelers. It holds a significant stake in PIERER Mobility AG’s structure through its investment arm.

Pierer Industrie AG

A strategic industrial holding controlled by the Pierer group. Holds 50.1% in Pierer Bajaj AG, which in turn holds a majority stake in PIERER Mobility AG.

Bajaj Auto International Holdings B.V.

A Bajaj group holding entity, holding 49.9% of Pierer Bajaj AG. Through this partnership, Bajaj has a significant interest in PIERER Mobility AG.

Pierer Bajaj AG

Joint holding entity, with 74.9% owned by Pierer Industrie AG/Bajaj Auto International Holdings B.V. and 25% Free Float. This is a key intermediary that consolidates the stakes of Pierer and Bajaj in PIERER Mobility AG.

Free Float (25%)

The portion of PIERER Mobility AG’s shares not held by Pierer Bajaj AG. These shares are publicly traded on the Swiss stock market.

PIERER Mobility AG

The publicly listed parent company under which all operational subsidiaries for motorcycles, e-bikes, and concept/digitalization efforts reside.

What businesses does PIERER Mobility operate?

PIERER Mobility business segments with KTM and E-Bikes

PIERER Mobility operates in three lines of business:

  1. Motorcycles (KTM, Husqvarna Motorcycles, GASGAS)
  2. E-Bikes (Husqvarna E-Bicycles, R Raymon, GasGas E-Bikes, and others under PIERER E-Bikes GmbH)
  3. Design, Concept Development & Digitalization (through various subsidiaries)

Design, Concept Development & Digitalization

These subsidiaries focus on the initial phases of product development, design strategy, brand identity, digital solutions, and technological innovation.

KTM E-Technologies GmbH (74%) specializes in electrification technology and e-powertrain solutions.

DealerCenter Digital GmbH (45%) provides digital dealership and distribution solutions, aiding in sales and customer experience.

Kiska GmbH (50%) is an industrial design and brand consultancy firm, instrumental in shaping the KTM and Husqvarna brand images.

Avocado GmbH (100%) likely involved in digital services or support functions related to brand and concept development.

HDC GmbH (100%) is another subsidiary focused on design, concept, or related technology services.

KTM Innovation GmbH (100%) drives forward innovative projects and R&D efforts within the KTM and wider PIERER Mobility ecosystem.

Motorcycles

Motorcycles is the core area of PIERER Mobility with iconic motorcycle brands and their supporting entities.

KTM AG (99.7%) is the flagship high-performance motorcycle manufacturer. Globally recognized for off-road and racing bikes.

WP Suspension GmbH (100%) specializes in high-quality suspension components for motorcycles, enhancing performance and safety.

GASGAS Motorcycles GmbH (100%) manufactures trial and enduro bikes, integrated into PIERER’s off-road brand portfolio.

Husqvarna Motorcycles GmbH (100%) is an historic motorcycle brand focusing on high-performance on-road and off-road segments, originally a Swedish company.

KTM Sportmotorcycle GmbH (100%) focus on sporty, performance-oriented motorcycles and related activities.

E-Bikes

The E-Bikes division reflects PIERER Mobility’s strategic move into the growing e-mobility sector.

PIERER E-Bikes GmbH (100%) is the main entity for e-bike development, manufacturing, and distribution of top-tier e-bicycle brands.

Husqvarna Vertriebsgesellschaften (100%) consists of the distribution companies dedicated to Husqvarna-branded e-bikes, leveraging strong brand identity.

PEXCO GmbH (100%) was acquired to focus on e-bikes, contributing to the segment’s growth and brand diversification.

PIERER E-Bikes Vertriebsgesellschaften (100%) subsidiaries handle sales, distribution, and market expansion for PIERER’s e-bike portfolio.

Why is KTM an important global brand?

KTM is synonymous with innovation and dominance in the motorcycle industry. As Europe’s largest motorcycle manufacturer, KTM sets benchmarks for off-road and sport motorcycles, with victories in prestigious races like the Dakar Rally and MotoGP. The brand’s agile design, advanced R&D, and rider-focused engineering make KTM a global leader, particularly in performance-oriented motorcycles.

KTM’s appeal extends beyond competitive sports, with significant growth in emerging markets like Asia and South America, thanks to its Bajaj partnership. KTM’s ability to innovate, from electric bikes to cutting-edge technology, solidifies its role in shaping the future of motorcycles.

Why are PIERER Mobility and KTM in debt?

PIERER Mobility’s financial troubles stem from several factors:

  1. Heavy Investment in Innovation: The company’s push into e-mobility and R&D for electric motorcycles and e-bikes required significant capital.
  2. Global Expansion Costs: Scaling KTM and other brands into new markets led to increased operational expenses.
  3. Strategic Acquisitions: While acquisitions like GASGAS and Husqvarna strengthened the portfolio, they also contributed to high debt levels.
  4. Economic Headwinds: Rising production costs, supply chain disruptions, and declining consumer spending in key markets exacerbated financial strain.
  5. Debt-Funded Growth: PIERER relied heavily on debt to fuel its growth strategy, increasing its financial vulnerability.

These challenges forced the company into restructuring, with KTM’s inability to meet payroll highlighting the severity of the crisis.

Conclusion

PIERER Mobility AG remains a key innovator in motorcycles and e-mobility, driven by iconic brands like KTM. However, its aggressive growth and investment strategy have led to significant financial challenges. Restructuring efforts will determine whether PIERER Mobility can regain stability and maintain its position as a global leader in the two-wheeler market.

This chart is made with Lexchart for automatic organization charts. Learn more about company structure charts with the Ultimate Guide to Company Structure Charts.