KTM Is Discontinuing Its 125cc Motorcycles, Which Seems Like the Wrong Move

KTM is stopping the production of its 125cc models in India due to mounting pressure from Japanese competitors.

By: Enrico Punsalang

Mar 11, at 8:04am ET

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KTM’s journey has been one wild ride, as it grew from a modest repair shop in 1934 to becoming one of Europe’s biggest motorcycle makers. Just a few years ago, its 125 lineup, especially the 125 Duke and RC 125, was a game changer. These entry-level bikes helped countless riders get hooked on motorcycling with their sporty looks, agile handling, and a dash of European flair.

Over the years, the 125s, along with the 250s and 390s, became the perfect starting point for newbies around the world. In markets like India, these bikes carved out a loyal following and were celebrated as premium yet accessible machines. They were the gateway for many riders—fun, lightweight, and ideal for learning the ropes on twisty roads and city streets.

However, as time passed, things got bumpier.

KTM hit a rough patch with a series of strategic missteps and financial challenges that led to a near-death situation. Recently, KTM AG, the crown jewel of European motorcycling, declared insolvency while grappling with an enormous debt amounting to about three billion euros. The insolvency forced the company to initiate a major restructuring process under judicial supervision. This tough period has even led to layoffs and around a year’s worth of unsold bikes, adding extra pressure on the company’s balance sheet.

With all that on the table, KTM has decided to pull the plug on its 125cc lineup in India. Starting April 1, the Duke 125 and RC 125 will no longer be on sale, as they won’t receive the necessary OBD2B updates. In a market where rivals like Yamaha’s R15 and MT-15 dominate, investing further in the 125 segment just doesn’t seem to add up. For local riders, shifting focus to bigger, more powerful machines—like the 200 and 250 Duke models—might offer a better value proposition.

And while this move might make sense in India, it raises questions for other markets. In Europe, 125cc bikes still play a vital role in introducing young riders to motorcycling. Removing such entry-level models could hinder KTM’s ability to nurture future talent and grow its fan base in regions where smaller displacement bikes are essential.

And so the question really is: is KTM making the right decision by discontinuing its 125cc machines? I mean, these things clearly have their place in the brand’s lineup, and I think the place they occupy is pretty damn important, especially in Europe. You see, for most young riders, their first bike heavily impacts their bike-buying decisions down the road. And not being able to get a taste of that KTM hooliganism in the 125cc segment will surely have its repercussions.