In motorcycle terms, registrations of motorcycles in the EU reached 520,846 units during Q2 2017(- 4.9 % compared to Q2 2016). Italy is currently the largest motorcycle market in Europe with 124,913 units registered in Q2 2017(+ 6.6 % compared to the same quarter of the previous year). Motorcycle registrations also increased in France( 91,494 units, + 2.6 %), but decreased in Germany( 88,322 units,-12.3 %), Spain( 67,373 vehicles,-8.1 %) and the UK( 53,549 units,-13.4 %).

Royal Enfield, which proudly claims to be the world’ s oldest motorcycle brand in continuous production, has opened a third factory in India. Citing increasing demand for its mid-sized bikes and no doubt eying its entry into the 750cc class, it takes the company’ s combined production capacity to 825,000 units a year. Royal Enfield is reported to have made over 667,000 motorcycles in its 2016 / 2017 financial year. The Indian firm’ s U. S. operation is headed up at a Milwaukee, Wisconsin headquarters by ex-Harley man Rod Copes.

In 2016 there were 371,403 new motorcycles sold in the United States – less than half of the market of a decade earlier. Offroad and on-highway motorcycle sales have been largely flat since 2010, with the modest growth in on-highway bike sales seen between 2012 and 2015 going into reverse. The percentage of riders aged 30 years or less has more than halved since 1990, while those aged over 50 now account for nearly 50 percent of the market.

India has overtaken China as the world’ s largest motorcycle market. Last year over 17.7 m motorcycles were sold in India – around 1 m more than in China, where the 16.8 m motorcycles sold was actually a decline of-11 percent. Motorcycle sales in China are said to have peaked at around 19 m units in 2009 – since then increasing numbers of Chinese cities have actually been banning motorcycle use, especially in city centres, in a( mistaken?) attempt to curb air pollution.

Net income $ 81,888 $ 32,312 $ 141,018 $ 150,367

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third quarter of 2017 was $ 10.4 million compared to $ 20.3 million in the third quarter of 2016. Adjusted for the Victory Motorcycles wind-down costs of $ 7.6 million, motorcycle gross profit was $ 17.9 million, down from the third quarter last year due primarily to lower Slingshot volume. North American consumer retail demand for the Polaris motorcycle segment, including Indian Motorcycle and Slingshot, was up mid-single digits percent during the 2017 third quarter. Indian Motorcycles increased retail sales + 16 percent, partly driven by new model introductions, including the new Chieftain Elite and Limited models and Roadmaster Classic. Indian Motorcycle market share surpassed the ten percent mark in September. Motorcycle industry retail sales, 900cc and above, were down high-single digits percent in the 2017 third quarter. Slingshot ' s retail sales were down, although the rate of decline decelerated during the quarter. Off-Road Vehicle(“ ORV”) and Snowmobile segment sales, including their respective PG & A related sales, were $ 1,007.4 million for the third quarter of 2017, up + 12 percent over $ 895.6 million for the third quarter of the prior year, driven primarily by improved side-by-side shipments. ORV wholegood sales for the third quarter of 2017 increased + 13 percent, primarily driven by strong RZR shipments. Polaris North American ORV unit retail sales for the third quarter of 2017 were up midteens percent from the 2016 third quarter, with both side-by-side vehicles and ATVs up mid-teens percent. The North American ORV industry was up high-single digits percent compared to the third quarter last year. Snowmobile wholegood sales in the third quarter of 2017 increased + 20 percent to $ 144.2 million due to timing of shipments year-over-year, as the company manufactured and shipped its snowmobiles later in 2016. Global Adjacent Markets segment sales, along with its PG & A related sales, increased + 17 percent to $ 91.6 million in the 2017 third quarter compared to $ 78.5 million in the 2016 third quarter. Work and Transportation group wholegood sales were up + 17 percent during the third quarter of 2017 primarily due to an increase in sales in the company ' s Aixam quadricycles and Goupil lightutility businesses. Aftermarket segment sales, which include Transamerican Auto Parts(" TAP "), along with the company ' s other aftermarket brands of Klim,

THIRD QUARTER CONSOLIDATED SECTOR PERFORMANCE SUMMARY

Kolpin, Pro Armor, Trail Tech and 509, increased significantly to $ 224.7 million in the 2017 third quarter compared to $ 29.9 million in the 2016 third quarter. TAP added $ 190.6 million of sales in the third quarter of 2017. Parts, Garments and Accessories(“ PG & A”) sales, excluding Aftermarket segment sales, increased seven percent for the 2017 third quarter. All segments and categories increased sales during the quarter. International sales to customers outside of North America, including PG & A, totaled $ 156.8 million for the third quarter of 2017, up + 1 percent from the same period in 2016. Sales in EMEA and Asia Pacific increased low-double digits percent in the third quarter, with Latin America growing sales mid-single digits during the quarter. Third quarter gross profit margin was 24.6 %, up 261 basis points over prior year. Adjusted gross profit margin was 25.5 %, up 351 basis points versus last year primarily due to positive product mix, increased VIP savings and lower warranty costs. During the third quarter of 2017, the company repurchased and retired 257,000 shares of its common stock for $ 23.3 million. Year-to-date through September 30, 2017, the company has repurchased and retired 1,015,000 shares of its common stock for $ 88.9 million.

8 AMERICAN MOTORCYCLE DEALER- NOVEMBER 2017 www. AMDchampionship. com