KTM Industries AG is on a roll. In a sluggish or outright down motorcycle market, KTM has performed well. In its latest financial release, KTM posted record financial results.
Record financial results
The Austrian manufacturer posted record revenue, sales and earnings results for the ninth time in a row. Group revenue came in at €754.9 million. That amount marks a positive growth of 4.2% compared to last year and came in at the upper end of KTM’s expectations.
Motorcycle sales were also up. KTM sold 135,711 motorcycles in the first half of 2019. That amount comprises sales of 115,318 KTM motorcycles and 20,393 Husqvarna motorcycles. Ultimately, the total sales figure is up 7% from last year.
Earnings before interest and taxes (EBIT) came in at €46.6 million. This amount was up 1.4% from the first half of last year and significantly over KTMs planned amount. KTM also noted that it had a positive outlook for the remainder of 2019 and confirmed its financial guidance.
The company also moved the goalposts of market share in both the US and India. KTM said it outperformed the overall market in the key motorcycle market of motorcycles greater than 120cc and saw registrations increase by 5.2%.
European registrations increased by 6.6% allowing KTM to maintain its market share in Europe at around 11.4%. In the current difficult US market, KTM increased registrations by 5.2% and raised its market share from 8.4% to 9.0%.
In what KTM called its most important future market, India, KTM said registrations increased by over 35% compared to the previous year. They also took a large chunk of market share by increasing its share from 4.3% to 6.8%.
Partnering with Bajaj
KTM also announced that it had decided to launch a series development project with Bajaj Auto Ltd. The project is to develop powered two-wheeler (PTW) electric vehicles in the performance range of 3 and 10 kW. Ultimately, the project plans to support various product variants. Both PTW and electric bicycles will be produced under the brands of both partners. PTW production is expected to commence by 2022 at Bajaj’s facility in Pune, India.