Ducati. Global sales fell down 34% in the first four months 2020

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Ducati Motor global sales declined 34% in the first four months of the 2020, thanks to a positive start of the year, before to be hit by covid19 restrictions, with the Italian plant full shutdown in April. The projection for the entire year is for a -23% at 41.000 units.

Global Sales in the 2020

In the 2020 Global Ducati sales are hit by the fall of global demand and by the April plant shutdown. Compared with other premium brands, Ducati at the moment is penalized by the low penetration in the South East Asian region, at the moment the less impacted by the crisis.

Year to date April sales have been 12.806 (-34.3%), with West Europe down 42.4% and Asia down 44% (China 60%). Sales in the ASEAN region were marginally negative, while North America has lost in double-digit.

The projection for the rest of the year are of course negative, while the outlook is improved due to the good post-covid19 markets reactions in Europe, Italy and France over all. The year should be ended at 41.000 units.

Despite opening many Ducati Stores, 2019 sales were flat

Following the rapid sales growth achieved after the 2014 Scrambler family launch, Ducati is almost stable near the 55.000 units as global sales, while other premium brands, like BMW and KTM are gaining space in all market segments, including those covered by the astonishing Italian red-brand.

Reading the official statements released by the Company, owned by Volkswagen Group, we noted the high number of new exclusive Ducati Stores opened all over the World, clearly showing the desire to improve sales volumes, both in terms of new motorcycles and correlated products and accessories. However, and despite our projection at the end of Q3, in the 2019 sales did not improved.

In fact 2019 sales at 53.389 units have been steady from the previous year.

Good news arrived from China and Brazil – which has been one of the worst country for Ducati in the previous years – while in general sales has been flat (like in Europe, despite a favorable industry trend) or moderately negative – like in North America

Ducati is recovering terrain in ASIA, with full year sales projected marginally up thank to the Chinese operations, and in South America, thanks to a double-digit growth in Brazil and boosted volumes in Colombia and Peru. In the ASEAN, were the company has established a manufacturing facilities (in Thailand) sales declined in double-digit.

In Australia sales declined 3.3% while Ducati have announced to take over the distribution after 25 years of positive relation with the current distributor. Ducati sales in Australia are actually less than the half of the 2015.

The Heritage

Ducati Motor Holding S.p.A. is the motorcycle-manufacturing division of Italian company Ducati, headquartered in Bologna, Italy. The company is owned by German automotive manufacturer Audi through its Italian subsidiary Lamborghini, which is in turn owned by the Volkswagen Group.

In 1926 Antonio Cavalieri Ducati and his three sons founded the “Società Scientifica Radio Brevetti Ducati” in Bologna to produce vacuum tubes, condensers and other radio components. In 1935 they had enough success to allow the construction of a new factory. Meanwhile, in the small Turin-based company SIATA (Italian company for technical Aviation applications), Aldo Farinelli has started developing a small thrust engine to be mounted on bicycles. This engine was called “Cucciolo” (referring to the characteristic sound of the exhaust).

In 1950, after the sale of over 200,000 Cucciolos, in collaboration with SIATA, the Ducati company finally offered its bike based on the Cucciolo. Ducati soon abandoned this name in favor of “55M” and “65TL”. When the market moved on larger motorcycles, the Ducati introduced a four-stroke scooter (65TS and Cruiser). It was not a great success, and only two thousand models were made in two years before the model stopped production. In 1953, the management divided the company into two separate entities, Ducati Meccanica SpA and Ducati Elettronica, in recognition of its divergent motorcycle and electronic product lines.

In the 1960s, Ducati produced the fastest 250cc motorcycle and in the ’70s began producing large-displacement V-Twin motorcycles.

In 1985 Cagiva bought the factory but kept the name “Ducati” on his motorcycles.

In 1996, Cagiva accepted the offer of the Texas Pacific group which first bought 51% and then the remaining 49% to become the sole owner of Ducati. In 1999 TPG issued an initial public offering of Ducati shares and renamed “Ducati Motor Holding SpA”. TPG has sold over 65% of its shares in Ducati, leaving TPG the majority shareholder. In December 2005, Ducati returned to Italian ownership with the sale of the investment in Texas Pacific (minus one share) to Investindustrial Holdings, the investment fund of Carlo and Andrea Bonomi.

In April 2012, Audi of Volkswagen Group announced that the subsidiary Automobili Lamborghini S.p.A. acquired 100% of Ducati Motor Holding S.p.A. for 747 million euros (909 million US dollars).

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