KTM Alleged to Sell Motorcycles Illegally

KTM is facing a significant wave of allegations threatening its reputation in the automotive industry, particularly in the motorcycle sector, due to reports of illegal off-road motorcycle sales practices. CarsCoops reported on Monday that the findings emerged shortly after the Austrian motorcycle manufacturer avoided a looming bankruptcy threat at the end of 2024. The case came to light after a team of journalists from ten major European media outlets, including Spiegel and Manager Magazin, conducted a months-long investigation by posing as potential buyers. Their investigation suggested that certain KTM models, particularly the KTM 350 EXC-F, were registered as road-legal vehicles through a process deemed highly controversial. After administrative procedures were completed, the motorcycles were reverted to their original specifications, producing around 51 horsepower through software modifications and specific component installations. The case has also escalated beyond allegations of illegal sales, highlighting the environmental impact of these vehicles. Data cited from the International Council on Clean Transportation (ICCT) indicates that motorcycles operating at full power produce significantly higher noise and emissions levels compared to when configured to meet regulatory standards. However, the company has denied the allegations circulating in Europe. KTM stated that all off-road motorcycles sent to dealers are legally compliant for road use. KTM also noted that further modifications are made only at customer request, and buyers are informed that vehicles with restrictions removed no longer meet road-use requirements.