A major strategic milestone has been reached in South America as KTM inaugurates its brand-new production facility in Manaus, Brazil. This newly established site stands as the sole fully owned assembly plant outside of Austria, featuring dedicated vehicle and engine assembly lines specifically tailored to supply the booming local market while keeping core manufacturing rooted in Mattighofen.
Brazil accounts for roughly 70 percent of the entire Latin American motorcycle market, presenting immense commercial opportunities. While motorcycles were previously assembled through external local partners, establishing an independent plant allows the brand to take direct control of production, drastically improving product availability and strengthening regional market presence.
Economic realities heavily influenced this move, as the Brazilian government imposes heavy import tariffs and taxes totaling between 80 to over 100 percent on completely built-up motorcycles. By contrast, individual components and semi-knocked-down kits face considerably lower tariff rates, perfectly complementing the tax advantages offered within the Manaus free trade zone situated deep within the Amazon rainforest.
CEO Gottfried Neumeister emphasized the long-term vision behind the massive investment. "Brasil zahlt zu den wichtigsten und vielversprechendsten Motorradmarkten der Welt – und fur KTM gibt es dort noch viel Raum," he noted, highlighting the immense potential for localized growth and customer proximity.
Production ramped up progressively through mid-2026, starting with the first locally assembled engine in late June and rolling out models such as the KTM 390 Adventure R by August. Operating on a single-shift schedule designed for roughly 10,000 units annually, the facility is fully poised to scale up capacity and expand its manufacturing portfolio in the near future.
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