San Marino, and more mechanical problems at Portugal cooled off his chances to become Rookie of the Year, and perhaps finish in the top 5. Kallio would capture his first 250cc class victory at the rain-soaked Japanese race, before crashing out in Australia, a 4th place in Malaysia, and a brilliant win in Valencia, fending off Alex de Angelis on the final lap. He ended his rookie season with two wins, two pole positions, four podiums and two fastest laps, placing him 7th in the rider standings with 157 points, second among rookies. Kallio remained at KTM for 2008. A very strong start to the season saw him finish on the podium during the first four races, a 3rd place at the season opener under the floodlights of Qatar, a fortunate win at Jerez after title rivals Álvaro Bautista and Marco Simoncelli crashed out together on the final lap, another solid third place at Portugal, before continuing his strong run with a masterful victory in China under tricky conditions. Kallio had built up a strong lead in the championship, but his luck would begin to change for the worse with a 5th place in Le Mans, a 4th place in Mugello, and the race in Barcelona, where his bike broke down, causing Kallio to nearly crash on his way back to the pits, resulting in his lead in the championship disappearing. His woes seemed to continue at Donington Park after qualifying only 14th, but he cut through the field fairly quickly, often overtaking multiple riders in a lap, and took a surprise victory. As it later turned out, this was to be his final win in the season, and in the 250cc category, the intermediate class switching to 600cc bikes, and rebranding as Moto2 in the following seasons. The KTM riders struggled to keep up with the pace of Piaggio riders, Kallio finishing 7th in Assen, 4th at the Sachsenring, 5th in Brno, and retiring in Misano. His title challenge was mathematically over in Australia, having been passed by eventual champion Simoncelli and Bautista a few laps before the end of the race, finishing in third place. A technical issue in Malaysia saw him retire on lap 5, and the final round at Valencia ended with Kallio limping home in 11th, having been the only rider to keep pace with the new world champion, Simoncelli, and pushing to the limit