South America: a growing market for motorbikes – KTM opens plant in Manaus, Brazil

The newly opened site is the only assembly plant wholly owned by KTM outside Austria and has its own vehicle and engine assembly facilities. Production is exclusively for the Brazilian market; production in Austria remains, as before, in Mattighofen.

Brazil accounts for around 70 per cent of the Latin American motorbike market and therefore offers KTM significant opportunities. Until now, KTM motorbikes were assembled there on behalf of a partner; with its own plant, the company is now taking over production itself. With the newly opened assembly plant, KTM aims to strengthen its market presence and product availability in Brazil and lay the foundations for a gradual expansion of its range.

The background to this is as follows: the Brazilian government imposes customs duties, taxes and levies on a ready-to-ride motorbike, which amount to between 80 per cent and over 100 per cent of the motorbike’s value. Significantly lower customs duties and tax rates apply to individual parts and kits. It is therefore almost essential for a manufacturer to relocate at least the assembly of its motorbikes to Brazil in order to remain price-competitive. The Manaus Free Trade Zone, situated in the heart of the Amazon rainforest, offers additional tax advantages, which is why Honda, Yamaha, BMW, Ducati and Triumph already operate assembly plants there.

CEO Gottfried Neumeister explains: “Brazil is one of the most important and promising motorbike markets in the world – and there is still plenty of scope for KTM there. With the plant in Manaus, we are creating the conditions to capitalise on this potential and to be even closer to our local customers. This is a deliberate step towards targeted growth and a long-term commitment to this market.’

The official opening was preceded by a phased production ramp-up: on 26 June 2026, the first engine was manufactured under series production conditions, followed on 1 July by the start of production of the two-stroke enduro models. The KTM 390 Adventure R has been rolling off the production line since 10 August, with the KTM 390 Adventure X joining the line-up in October. In addition to the two Adventure models, the initial portfolio includes enduro bikes from KTM and Husqvarna Motorcycles featuring two-stroke engines (300 cc) and four-stroke engines (350 cc), as well as the KTM 250 SX-F and KTM 450 SX-F motocross bikes. In 2027, the KTM 790 Adventure R, the KTM 790 Duke and the KTM 390 Enduro R are set to be assembled in Manaus.

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Operating on a single shift, the plant is designed to produce around 10,000 motorbikes per year. Between 7,000 and 8,000 units are planned for 2027, and from 2028 onwards, KTM plans to operate on a two-shift basis. “The successful start-up demonstrates what is possible in Manaus – and we still have plenty of plans. The plant can grow in line with the market, both in terms of capacity and the range of models on offer. At the same time, we are strengthening our competitiveness through local value creation, high cost efficiency and a flexible production structure. In doing so, we are laying the foundations for sustainable growth and setting the course for an economically strong future in Brazil,” said KTM Chief Financial Officer Petra Preining.

To date, KTM has invested around three million euros in the Manaus site, with a further two million euros earmarked for 2027 and 2028. Around 80 employees are directly employed by KTM do Brasil, with a further 20 or so working through service providers. Regional suppliers are also involved, with 15 local suppliers currently providing 80 different components.