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I would have guessed the same based on the current Waverunner production being in Georgia. However all past SJ were Made in Japan and shipped over.
The Yamaha video above from Rixter is 100% a Japanese factory, and in the video from Finn we can see a "Made in Japan" sticker on the hood just like my 701. The TR-1 engine says made in Shizuoka, Japan as well.
@yamaharider85 - I've worked on these analyses a bit. There are specific rules around being able to claim a product is Made in ___ vs Assembled in ___ and has to do with the percentage of total value of parts and assembly being done in that country. When they say Made in Austria, it does not mean 100% of the parts and assembly have to be made there.
In the case of your KTM, the final assembly and many of the precision parts are made in Austria but a few rubber hoses may be made in China. I have actually been surprised when buying replacement parts that how many (even a small rubber part) are actually made in Austria or Italy. Glad to see they haven't farmed too much out to China. Or, I suppose it is possible the original was made in Austria but replacement parts are not.
I did buy the bike new and the tire tubes are the only things that failed me. Only part I found that were not Euro parts go figure ♂️