KTM axes CFMoto distribution deal in UK and Europe amidst ongoing financial difficulties

KTM parent company Pierer Mobility AG has confirmed that it will cease distribution of CFMoto and Zeeho motorcycles across much of Europe by May 31, 2025, in a bid to focus on its own brands – KTM, Husqvarna, and GasGas – amid a turbulent financial period. 

The decision, which is said to have been ‘mutually agreed’ by both firms, affects the UK, Germany, Austria, Switzerland, and Spain, where KTM has managed distribution since January 2023. 

From the beginning of June 2025, a new, yet-to-be-named importer will take over responsibilities in these markets. Until then, KTM’s subsidiary, CFMoto Motorcycles Distribution GmbH, will remain the point of contact for dealers and customers within the sales territories. 

In a statement, KTM said: “The past few weeks have been marked by significant changes within the KTM Group. The company will focus entirely on the realignment of its own brands in order to effectively pursue its strategic goals.” 

The longstanding manufacturing partnership between the two companies in China will remain unchanged, at least for the time being, and supply to the Asian market will be unaffected by the move going forward – with KTM continuing its distribution partnership in the region. 

The tie-up between both firms began in 2013, with CFMoto producing small-capacity KTM-badged bikes for the Chinese market. Over time, the collaboration expanded, with the Hangzhou brand taking advantage of KTM’s engineering know-how to branch out into larger-capacity machines for global distribution – such as the 800MT adventure tourer – with these bikes often coming with price tags that significantly undercut European and Japanese rivals. 

Despite being a relatively unknown name to the UK market until recent years, CFMoto has previously turned over an annual global revenue in excess of $1.2 billion. 

The company had previously announced plans for an ambitious network expansion in the UK, leveraging existing KTM franchises to secure 30 new dealership locations between 2023 and 2024. It remains to be seen how the transition will affect CFMoto’s growth in Europe going forward. 

KTM’s decision to end its European distribution arrangement with CFMoto stems from economic difficulties faced over the past 12 months. 

Post-Covid market turmoil saw KTM amass a huge stockpile of roughly 265,000 unsold bikes – leading to a wave of financial turmoil to the tune of €2.5 billion in claims split across three insolvencies (KTM AG, KTM FE GmbH, and KTM Components GmbH). This led to the ‘Ready to Race’ brand entering a 90-day ‘self-administration’ period – although production is now back underway after creditors approved a €750 million restructuring plan. 

• Related: Stefan Pierer steps back from CEO role at KTM

The Austrian giant has already undertaken several measures to trim the fat and steady what appeared to be a sinking ship. Stepping away from CFMoto distribution adds to a list that already includes selling MV Agusta back to the Sardarov family and making hundreds of redundancies.