International Dealer News 179 July/August 2024 IDN 179 July/August 2024 | Page 4

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European unit sales mostly up for first half year

This month ' s new motorcycle registrations data is mostly positive . Even where sales are flat , at least in major market terms , they are not in any kind of serious decline . Though the generally quite rational fears about the current economic environment are still a concern , are still causing uncertainty , but those fears do not ( yet !) appear to be squeezing motorcycle sales . Yes , some manufacturers are seeing long , unbroken sequences of production and sales records come to an end ( BMW , KTM and Ducati for example ), but ( so far at least ) that does not appear to be through lack of demand for motorcycles as such . Economic uncertainty has not yet translated into market instability . Maybe it will . In more than 30 years of writing about the international motorcycle industry , there never has been a time when we have been more than a bad quarter away from market panic . Yes , some dealers in some markets do have excess inventory , and yes , some manufacturers are taking steps to address that and reduce production ( KTM for example ), but in general terms , new unit sales through the first half of 2024 are up . The selling environment is not yet dramatically better than the conditions of the past two years though . There are still multiple wars playing out in Europe , the Near East and Africa . Inflation is still not yet fully out of the system and interest rates are still high . Central Bank caution still prevails . Some of the improvements that we all thought had crept back into the international trade dynamics , that shape our industry , appear to be unstable again . There are worrying reports about freight costs and timescales for example , though this time they appear to be largely driven by the problems specific to security in the Gulf of Aden . Chip shortages are likely to start becoming a ' thing ' again , and the geopolitics of trade are unstable again with tariffs ( on materials and finished goods ) back on the table again . We can add the current crop of political uncertainties and potential impacts of election outcomes on free trade and established global trading patterns into the mix too . However , assuming they can afford them and get their hands on them , do people still want our products ? Yes , they do . In fact , the Italian market , especially , is on fire again this year . New motorcycle and PTW registrations for the first six months of 2024 are already at record highs in Italy , in 21st century terms at least . The latest available data from the Italian motorcycle industry association ( ANCMA ) show new motorcycle registrations in Italy for the first six months of 2024 up by a very healthy + 7.75 % at 96,411 units YTD , having been positive for four out of the six months so far , and all three months of Q2 . Total PTW registrations were + 6.21 % YTD at an unprecedented first six-month level of 203,874 units - a record for the first half of the year in Italy . The top-selling motorcycle YTD was the Benelli TRK 702 / X , followed by the BMW 1300 GS and the 1,100 cc Africa Twin third . Unusually , in a sea of scooters , the three leading larger displacement motorcycles were in 7th , 10th and 16th spots respectively in terms of all PTW sales in Italy YTD . Add to that the fact that , as elsewhere , Maxi and ADV style scooters remain strong sellers in Italy , with the mid-displacement sector ( 400 cc to 800 / 900 cc ) continuing
Italy massively up
to heavily inform an industry direction of travel that has sustainability , resilience and profitability stamped all over it . That ' s not to say there are problems lower down the price-points either - total scooter sales in Italy were 107,463 units (+ 4.87 %) for the first half year . Total motorcycle sales in Italy for the 2023 full year were massively up over the yearago at 145,405 units (+ 14.88 %,) with total PTW sales hitting a massive 318,948 units for + 14.88 % market growth . It ' s not as if the Italian market is financially that much different to elsewhere in terms of current cost of living , inflation , interest rate and other pressures . But Italian consumers are presently very motivated to find the cash or get the credit necessary to ' throw a leg '. Okay , compared to elsewhere , it kind of has always been thus in Italy . But even so , it shows to go that our industry ' s products are still turning heads , creating door swings and opening wallets . That ' s not to say that there aren ' t indicators of possible market slowdown ahead , there are . In addition to the news from BMW , KTM and Ducati , the latest data available from JAMA , the Japanese trade association , show that whereas exports of ' Big Four ' domestic manufactured motorcycles to Europe were + 17.26 % for the 2023 full year at 247,187 units , this year , for the first five months of 2024 , they were actually down at -4.67 % YTD ( 98,632 units ). While the growth in the German motorcycle market isn ' t quite as spectacular is it is in Italy , the positive trend from the end of 2023 (+ 16.41 %/ 125,748 units ) has at least somewhat continued with registrations for the first five months of this year running at + 4.29 % ( 68,231 units ). Spain is up at + 4.43 % for the first six months of the year ( 105,912 units ), also a record for the first half year , and even the UK ' s recent flirtation with ' technical ' recession hasn ' t seen the motorcycle industry there fall off a cliff - ' essentially flat ' at + 0.62 % ( 46,705 units ) for the period from January to May . We don ' t have access to any data yet for France this year , but we are not hearing any negatives about registrations there . With 2023 having ended at + 6.9 % ( 206,731 units ), then at worst the market there may have been ' flat ' in 2024 so far . That being the case then , given that the ' Big Five ' markets in Europe ( Italy , Spain , France , Germany , UK ) are worth around 80 % of the market ' s total new motorcycle registrations overall , the picture of a European motorcycle market that is continuing to grow remains robust . Of course , just because something hasn ' t gone wrong so far , doesn ' t mean that it won ' t do so now . If I have got it wrong , then sorry , and it wouldn ' t be the first or last time - but no , you can ' t send me the invoice !
Robin Bradley Publisher robin @ dealer-world . com