KTM is largely in a pickle of its own making. And I'm not even talking about the current insolvency proceedings that are happening in the background. No, I'm talking about how the Austrian company ended up with more than a year's worth of unsold inventory sitting on dealership lots.
See, over the last few years, KTM increased the prices across its entire lineup and, wouldn't you know it, didn't really stay competitive. Likewise, as the market moved toward low-displacement, more inexpensive motorcycles, KTM went the absolute opposite way and kept launching $20,000 bikes. Brilliant business acumen, folks.
And so, when the company began its insolvency disclosures, we found out that KTM had over 267,000 unsold but new bikes dating back to 2023. That's put KTM in the aforementioned pickle as it still has new bikes coming and dealerships are hamstrung due to mounting inventory. And though there's been some minor price slashing—not in the fire sale way they absolutely need to be doing, if you ask me—KTM, in all its business wisdom, has determined that what will bring folks back into the Orange fold is a longer warranty.
Genius! /sarcasm
But what's funny, the new extended warranty doesn't cover one portion of the brand's lineup. Any guesses? Oh yeah, it's the bikes that KTM seemingly hates wear its badge and will likely save the company due to exactly who makes them. If you guessed the 390s, you'd be correct.
There's also a massive catch to this warranty.
"KTM is providing a reassuring boost to all incoming customers and passionate ‘orange bleeders’ with an upgraded warranty program," says the press release, adding, "The PREMIUM MANUFACTURER’S WARRANTY, which is completely free, will ensure up to four years of coverage for certain KTM street and travel motorcycles."
Those motorcycles include all new, but unregistered 2023, 2024, and 2025 motorcycles in the brand's Street and Travel series' that come with the LC8 or LC8c engines. Those would be the 790s, both Duke and Adventure, as well as the 1390s, too. However, if you noticed that the 390s built by Bajaj—currently one of the suitors vying to purchase the brand outright—aren't included, you'd be onto something.
See, the 390s are still selling pretty well. What aren't selling, however, are the bigger, more expensive bikes which, if you were paying attention to the market in any sort of visible way, would've been obvious. And so, those bikes don't get this new warranty. They'll still come with the old warranty. Why bother incentivizing something that's already working?
But it's clear that this warranty extension is KTM's way of trying to get folks back into dealerships and getting rid of its unsold inventory that's dragging both its dealers and the company at large down. Is it enough? I don't think so, but I've already mentioned that the company needs to do a proper sale on its new-old inventory to clear the way forward. Will they listen? Doubtful, given their track record of business decisions.
Yet, even this warranty extension comes with one of the biggest caveats I've ever seen. One that folks should absolutely know about.
Under the Disclaimer section of the press release, KTM states, "KTM North America, Inc. reserves the right – without prior notice and without specifying reasons – to change the Premium Manufacturer’s Warranty campaign for the LC8c models as well as LC8 Street and Travel models including the services offered and provided therein, as well as any requirements, etc., or to discontinue them without replacement."
So not only can KTMn change, "without prior notice and without specifying reasons" this whole 4-year warranty they're touting as giving riders this great assurance, but they can just kill it completely and by taking it, you agree to essentially forfeit any legal rights as they can "discontinue them without replacement." Essentially, you'd be up a creek without a paddle and a hole in your boat.
Or is it a broken camshaft?
So if you were thinking about a new KTM, or rather an old one that hasn't left the dealership floor, and this extended warranty sounded good, now you know what's up. I'd personally wait for a big-ole price reduction, but that's me. Also, I'm not sure I'd buy a KTM at present no matter the price or situation, as the company is still in a very precarious situation.
