KTM has inaugurated a brand-new manufacturing plant in Manaus, located in the state of Amazonas, Brazil. The new facility is already up and running with 100 direct and indirect employees, boasting a production capacity of 20,000 motorcycles per year.
The site is located within Bajaj Auto’s existing facility in Manaus and represents a total investment of around R$ 20 million (Brazilian Reais) in equipment and infrastructure. In its initial operational phase, the plant expects to roll out 3,500 units by the end of 2026, with plans to scale up production further throughout 2027.
Shift From Partner Assembly to Independent CKD Facility
KTM first started local motorcycle assembly in Manaus back in 2016 through an assembly partnership with Dafra Motos. Moving away from that third-party setup, the new plant operates independently on a Completely Knocked Down (CKD) model exclusively for KTM and Husqvarna machines.
The standalone operation handles the end-to-end manufacturing workflow, including kit preparation, engine assembly, motorcycle line assembly, quality inspection, packaging, and logistics. This setup allows KTM AG and Bajaj Mobility AG to align industrial operations directly with commercial strategies in Brazil, improving product supply and dealer support.
The opening event was attended by key international executives and state officials, including:
- Petra Preining (CFO, Bajaj Mobility AG and KTM AG)
- Fabian Steinbacher (Vice President Operations, KTM AG)
- Peter Stuhlberger (Lead Overseas Operations, KTM AG)
- Leopoldo Júnior (Superintendent of Manaus Free Trade Zone – Suframa)
- Gustavo Igrejas (Amazonas State Secretary for Economic Development, Science, Technology and Innovation)
Commenting on the launch, Rakesh Sharma, Joint Managing Director of Bajaj Auto Limited, noted that co-locating the KTM plant alongside Bajaj’s facility in Manaus highlights the strategic alignment between both brands to serve Brazilian riders and expand global footprints.
Ten KTM & Husqvarna Models Set for Local Assembly
The facility is dedicated strictly to building ten specific models across the motocross, enduro, and adventure segments:
| Segment | KTM Models | Husqvarna Models |
| Motocross | KTM 250 SX-F, KTM 450 SX-F | — |
| Enduro | KTM 250 EXC-F, KTM 350 EXC-F 6DAYS, KTM 300 EXC, KTM 300 EXC 6DAYS | Husqvarna FE 350, Husqvarna TE 300 PRO |
| Adventure | KTM 390 ADVENTURE R, KTM 390 ADVENTURE X | — |
The newly introduced adventure tourers—the KTM 390 ADVENTURE R and KTM 390 ADVENTURE X—were showcased to the Brazilian market in August and are arriving at dealerships in October 2026. Suggested retail prices are set at R$ 37,990 for the 390 Adventure R and R$ 33,990 for the 390 Adventure X.
Network Expansion & Future Outlook
To support the increased production output, KTM’s authorized dealership network in Brazil currently stands at 12 locations and is slated to expand to 30 retail outlets by 2027. Executives highlighted that local value creation and quality standards match Austrian factory requirements while providing a flexible base for sustainable growth.
My Thoughts
“Bajaj Auto opening this brand-new 20,000-unit KTM facility in Brazil shows just important and committed the brand is to improve the reach of KTM globally. What makes this super relevant from an Indian perspective is seeing bikes engineered and perfected right here in India—like the 390 Adventure R and 390 Adventure X—taking centre stage in key international markets like South America. Bajaj using its global manufacturing muscle to build premium off-road machines in Manaus highlights India’s growing importance not just as a massive consumer market, but as the primary global hub for manufacturing world-class, small-to-middleweight performance motorcycles.”
— Avin Richards
