10 models, 100 jobs and a strategy that could change the South American motorcycle market!
KTM has officially opened its new motorcycle manufacturing plant in Manaus, Brazil, which has an installed capacity of 20,000 units per year. This plant, which was inaugurated on October 14, 2026, is already producing KTM and Husqvarna motorcycles for the South American market.
This is KTM’s only fully owned assembly plant outside Austria, and it is a key element in KTM’s strategy to restructure its South American operations. The plant will produce 10 models across motocross, enduro and adventure segments, giving KTM a stronger presence in Brazil.
A 20,000-unit capacity plant
The Manaus plant has an installed capacity of 20,000 motorcycles per year. However, production will start gradually, and will not reach full capacity right away.
Production targets:
2026: 3,500 units by year-end
2027: 7,000-8,000 units
2028 onwards: Two-shift operation for higher output
In single-shift operation, the plant is designed to produce around 10,000 motorcycles per year. From 2028, KTM plans to start two-shift operation, which will bring the plant closer to its full 20,000-unit capacity.
The plant covers 4,000 square metres of built-up area and employs 100 people directly and indirectly.
10 models across three segments
The Manaus plant will produce 10 models from the KTM and Husqvarna line-ups, across three key segments:
Segment Models
Motocross KTM 250 SX-F, KTM 450 SX-F
Enduro Multiple KTM and Husqvarna models
Adventure Multiple KTM and Husqvarna models
In motocross, the plant will manufacture the KTM 250 SX-F and KTM 450 SX-F, which are competition-ready machines aimed at serious racers and enthusiasts.
The enduro and adventure segments will also see multiple models being produced, giving Brazilian buyers a wider choice of KTM and Husqvarna motorcycles.
Only fully owned plant outside Austria
The Manaus facility is KTM’s only complete assembly site outside Austria. KTM has its own vehicle and engine assembly, making it a full-fledged manufacturing plant rather than just a knock-down assembly unit.
This is a significant investment for KTM and its parent company, which is controlled by India’s Bajaj Auto. The plant gives KTM a stronger foothold in South America, which is one of the fastest-growing motorcycle markets in the world.
Why Manaus?
Manaus is located in Brazil’s Amazonas state, in the heart of the Amazon rainforest. The city is a free-trade zone, offering tax incentives and lower import duties for manufacturers.
KTM’s new plant is located next to Bajaj’s existing industrial unit in Manaus. The two companies can share infrastructure and logistics, while maintaining separate production lines.
The location also gives KTM better access to the Brazilian market, which is one of the largest motorcycle markets in South America.
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KTM and Husqvarna restructuring
KTM and its sister brand Husqvarna are restructuring their operations in South America, and the new Manaus plant is a key part of this strategy.
By producing bikes locally, KTM will be able to reduce import costs, improve supply-chain efficiency and offer more competitive prices to Brazilian buyers. This should help both brands grow their market share in the region.
Employment and local impact
The Manaus plant employs 100 people directly and indirectly. As production ramps up, this number is expected to grow.
The plant will also have indirect impact on local suppliers, logistics partners and businesses in the Manaus region, creating additional jobs.
KTM’s global manufacturing network
KTM already has production lines in Asia and South America, to meet global demand. The Manaus plant adds to KTM’s global production footprint, giving it more flexibility to serve different markets.
KTM’s global production footprint:
Austria (Mattighofen): Global headquarters and main plant
India: Bajaj partnership for small and mid-size models
China: CFMoto partnership for mid-class models
Brazil: New Manaus plant for South American market
Philippines: IMI partnership for Asian market
With production lines in Asia and South America, KTM is looking to become the largest motorcycle manufacturer in the world.
What this means for Brazilian buyers
Brazilian buyers can expect more KTM and Husqvarna models, at competitive prices. Local production will reduce import costs, which should be reflected in the value-for-money proposition to these buyers.
The plant will also improve parts availability and service support, as local production means shorter supply chains and faster delivery of spare parts.
The inauguration of KTM’s new Manaus plant is a major milestone in its South American strategy. With a 20,000-unit annual capacity, 10 models and 100 jobs, KTM is set to gain a stronger foothold in the Brazilian market.
For KTM and Husqvarna fans in Brazil, this means more models, competitive pricing and improved service support. For KTM globally, the Manaus plant is a significant investment that will give it the credibility of a truly global motorcycle manufacturer.
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