KTM is most commonly known for its off road motorcycles though in recent years it has expanded into street motorcycle production.The company was founded in 1934 by engineer Hans Trunkenpolz  in Mattighofen. It started out as a metalworking shop and was named Kraftfahrzeug Trunkenpolz Mattighofen. It wasn't until 1953 that KTM began production of motorcycles. With just 20 employees, motorcycles were built at the rate of three per day. In 1955, a businessman Ernst Kronreif became shareholder of the company, on acquiring a sizable portion of the company. It was then renamed Kronreif & Trunkenpolz Mattighofen. Trunkenpolz died unexpectedly in 1989. During these early years of motocycle production at KTM, almost all components for the motorcycles were built in-house by KTM.

Throughout KTM's history, they have been on the leading edge of motorcycle technology. They were the first manufacturer to produce a liquid-cooled four-stroke motorcycle engine for an off road motorcycle, a design which has since been replicated by all other manufacturers(KTM even supplied radiators to Suzuki in their early water-cooling days). In 1986, KTM became the first motorcycle manufacturer to include both front and rear disc brakes on an off road motorcycle. In 1998, they offered a linkless rear suspension, dramatically reducing the un-sprung weight of the bike (KTM was the first major manufacturer to do so, although ATK, a small market, niche brand did so as early as 1987). They were also the first to offer hydraulic clutch mechanisms on all models of motorcycles, and were the first to offer a competition-ready supermoto bike.

Since 1990, KTM motorcycles and automobiles (X-Bow) have been designed by KiskaDesign, a Salzburg-based design firm with over 100 employees that offers transportation, product, environmental, identity and branding to an international clients. It is responsible for the overall branding for KTM; including the design of the vehicles, shops, exhibits and printed material. The firm applies a method IDD (integrated design development) to all of its client projects. Gerald Kiska is the principal.

KTM began in motorsports with Motocross Racing. In the last few years KTM has gained more success in motorsports by dominating rally-raid events such as the Paris-Dakar Rally and the Atlas-Rally. In 2003, KTM started sponsoring and supporting Road racing in various capacities, with the most successful results stemming from their SuperMotard or Supermoto efforts. KTM's new road racing focus will soon grow to include Superbike competition with the help of their newly developed V-Twin engine dubbed the LC8 as employed in the 950 Adventure dual-sport motorcycle, and more specifically the 2005/2006 990 Super Duke followed by the superbike contender known as the 1190 RC8. The Super Duke will have a higher output, second generation version of the LC8 engine, geared for high rpm peak power as required in road racing and superstreet applications while the RC8 will sport a 1190cc version of the LC8 for more midrange.

KTM offers a range of different engines for its larger motorcycles, all liquid-cooled.

KTM's official company/team colours are Orange, Black and Silver. To create a strong brand identity, all competition-ready KTMs come from the factory with bright orange plastic with "KTM" emblazoned on the side of the radiator shrouds. All KTM bikes also come from the factory with a Motorex sticker on the outside of the motor. All first fills of oil come from Motorex as well. Some official KTM teams use different colors for their bikes, most noticeably in the Dakar Rally.