KTM Opens New Brazil Plant With Capacity to Build 20,000 Motorcycles a Year

KTM has opened a new manufacturing facility in Manaus, Brazil, with an installed capacity of 20,000 motorcycles a year. Dedicated to KTM and Husqvarna, the plant is already operational and will build ten models spanning motocross, enduro and adventure motorcycling.

The facility marks a shift in how the manufacturer operates in Brazil. Since 2016, KTM has assembled motorcycles in Manaus through a partnership with Dafra Motos. The new plant gives the company an independent industrial operation for its two brands, with an investment of approximately R$20 million in facilities and equipment.

Production follows a Completely Knocked Down (CKD) model, with operations covering kit preparation, engine assembly, motorcycle assembly, quality control, packing and shipping. KTM expects to build 3,500 motorcycles at the facility by the end of 2026, before scaling up production through 2027.

The initial production line is focused heavily on off-road motorcycles. KTM will build the 250 SX-F and 450 SX-F motocross models, alongside the 250 EXC-F, 350 EXC-F 6DAYS, 300 EXC and 300 EXC 6DAYS enduro machines. Husqvarna's contribution will include the FE 350 and TE 300 PRO.

Adventure motorcycling will also feature in the plant's production plans. The KTM 390 Adventure R and 390 Adventure X, introduced to the Brazilian market in August, will be assembled locally. The two models are priced at R$37,990 and R$33,990 respectively.

Beyond manufacturing, the new facility is intended to improve product availability and support KTM and Husqvarna's expanding dealer network in Brazil. The brands currently have 12 authorised outlets in the country, with a target of 30 by 2027.

The plant also brings KTM's industrial operations closer to Bajaj Auto's existing facility in Manaus, underscoring the importance of the partnership between the Indian manufacturer and KTM. Bajaj Auto's Joint Managing Director, Rakesh Sharma, said the combined strengths of the two companies would help them serve Brazil's riding community and build their business in the market.

The new facility has an installed capacity of 20,000 motorcycles a year, but KTM's immediate production target is considerably more modest. The gap suggests the company is building room for future growth rather than chasing capacity from day one. Whether that potential translates into higher volumes will depend on demand, dealer expansion and how quickly the operation scales through 2027.

For now, the Manaus plant gives KTM and Husqvarna greater control over local assembly and a dedicated base from which to grow their Brazilian operations.