British Motorcycles Market fell down 84% in April due to activities shutdown and is surfing the deepest quarter in a century. Q2 motorcycles sales are projected down over 70% and the entire year will close at 61.000 units (-42.4%).The combined effects of Covid19 and Brexit have started one of the darkest period for our industry in the United Kingdom.
2020 & 2021 Motorcycles Market Data & Outlook
Following the recent year steady pathway, the British motorcycles industry started the 2020 with a moderately positive speed in January (+2.8%) and February (+3.0%), before to fall down in March (-21.6%) and in April (-84%) when the spread of Covid19 forced the people to stay home and shut down activities (but unfortunately only since March 19th the Government started following the World Health Organization route).
In the first four months of the year sales were 25.450, down 31.1%
Unfortunately the delay to take concrete actions against the pandemy will be paid heavily by the country and while the rest of Europe is near to have all economic activities reopened, while under new and safety conditions, the UK is still in shutdown and re-opening could be in July.
The effects on economy will be hard and the most likely scenario actually predicts a ‘V-shaped’ recovery – a quick economic downturn followed by a quick upturn once the lockdown measures are lifted – but it is not predicting a recovery in full. The start of a GDP uptick in Q3, followed by ‘pre-virus levels’ of GDP in Q4 would still mean a 13 per cent fall in annual GDP in 2020 – the biggest quarterly economic contraction since 1908, worse than the financial crash and both world wars. And even if the economy bounces back quickly, unemployment is not expected to fall at the same rate, despite unprecedented measures from the Treasury to keep people in employment.
These calculations assume a three-month lockdown, followed by an additional three months with only some restrictions lifted. These assumptions are subject to change as our understanding of the virus – and our answers for it – develop. But while there’s still plenty to discover, we don’t need hindsight to confirm that in just two months, Covid-19 has outpaced a century’s worth of quarterly economic contractions.
After having ended the Q1 with 23.837 sales (-12.2%), the two-wheeler industry will fall down in Q2 losing over 75%. Since Q3 the year-on-year decline will moderate but anyhow the 2020 will end at 62.000 units (-40.6%) and the recovery will not start before the second quarter 2021.
The combined effects of Covid19 and Brexit have started one of the darkest period for our industry in the United Kingdom.
2019: Royal Enfield booms in a moderately positive market
According to data released by the British Minister of Transportations, in 2019 was positive for the British motorcycles industry, with final sales at 107.551, up 1.6% from the previous year, at the third highest level in this decade.
Actually the British market stands as the sixth biggest in Europe, after France, Italy, Germany, Spain and Turkey, while at Global level the market is only 30th, ahead of South Korea and Australia and behind Ecuador and Paraguay.
In recent years the market has been almost stable with the lower peak in the 2012 at 94k sales and the highest in the 2016 at 128k.
The competitive arena
The British market is almost concentrated with the Top 10 brands holding 76.6% of the total volume, while 122 brands have registered at least one units in the 2019.
The market leader since years is the Japanese Honda with 2019 sales at 21.150 (+6.0%) holding 19.7% of share.
The second best-selling brand is Yamaha with 11.115 units (-10.6%), with 10.3% of market share.
In third place BMW with 9.235 sales (+4.1%) established the new record in this market.
In forth the British Triumph with 8.036 units (-5.4%) followed by Kawasaki with 7.045 (+0.3%), Lexmoto with 6.603 (+45.5%, but following the huge 2018 drop), KTM with 6.460 (+11.7%), Harley–Davidson with 4.559 (-7.5%), Suzuki with 4.403 (-2.6%) and in 10th place Ducati with 3.119 units (-5.1%).
The fact of the year was the Royal Enfield 121.8% boom jumping in 11th place with 2.935 sales.