This is the engine which will power KTM's machines in next year's inaugural Moto3 World Championship.
The KTM Moto3 project will see two different, but parallel, concepts: A KTM Racing machine, 100% developed at the company's headquarters in Mattighofen, Austria, and a Kalex-KTM bike.
The fully in-house KTM Racing machine - said to feature an 'innovative' frame concept - will be run by the title-winning Ajo Motorsport team, while the Kalex-chassis version will be offered to customer teams.
The KTM M32 engine was designed by Kurt Trieb, who was responsible for the construction of the KTM MotoGP V4 motor.
The engine was first fired-up on a test bench at 9:27am on August 26.
KTM is a former Constructors' Champion in the 125cc class, which is being replaced by Moto3, but is yet to win a grand prix Riders' title.
Fellow manufacturer Honda officially launched its Moto3 machine during June's Catalan Grand Prix.