Turkey. In the first half 2020 the motorcycles industry was resilient to the crisis

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Turkish Motorcycles Market is resilient to the covid19 crisis ending the first half 2020 with a moderate lost (-34%) with surging demand for individual mobility balancing the effects of the economic crisis. Honda is market leader with 15.9% of share ahead of a group of local brands.

Economic Environment

Economic momentum has likely been severely disrupted by Covid-19 in the second quarter. Industrial output fell by over a quarter in April–May amid manufacturing weakness due to domestic and foreign measures weighing on output capacity and demand, while merchandise exports nearly halved in the same months.

Furthermore, the current account position continued to worsen as a consequence and also due to virtually no tourist arrivals in the quarter as a whole. Restrictive measures domestically also weighed on household consumption. Despite accelerating consumer credit growth throughout the quarter and improving consumer sentiment, retail sales fell steeply in April and May. More positively, June–July data suggests that the economy began to recover at the tail end of the quarter and into Q3

This year the economy should continue growing owing to a weak base effect and the impetus provided by looser monetary policy. However, as domestic demand gains traction, the external sector will likely weigh on the economy as imports outweigh exports. Moreover, risks remain tilted to the downside as geopolitical tensions and market volatility linger. 

Motorcycles market Trend

Following two years of moderate decline, the domestic 2-Wheeler market in the 2020 is resilient to the covid19 crisis.

The year started with a 4/5 percent growth in the first two months and while the virus spread in the country, the market declined moderately. The necessity for a safety and more individual mobility in fact balanced the lost of purchase power for falling economic activity.

After a first quarter ended in line with the corresponding period last year, in the second quarter the decline was moderate and the first half closed with 76.851 down only 3.5%.

As far as the competitive arena, the positions are unchanged from last year with Honda on top of the list with 15.9% of market share.

In second place there is the local brand KUBA followed by Mondial and Yamaha.

Motorcycles Industry Heritage

This century started up with 53.000 sales in the 2000, well below the level of the record of 94.000 units touched in the 1997 and in the following years was in a sharp crisis with sales fallen down at a record-low of only 16.000 units in the 2002. Then the crisis was over and the market took a rushing path, with sales  near the record in the 2004 (92.000) and then above, with 2005 at 174.000 and in the 2006, in the sky, at the actual record of 390.000 units.

Too fast too soon, and in the 2007 and 2008 sales fell at 192.000 units (the current third best ever level), with a rapid fall at 134.000 in the 2010, a rapid recovery in the 2011, at the current second best record, 199.000.

Since then a progressive slow declining pathway is in place, with 2016 at the lower level in this decade (143.677) followed a recovery in the 2017 due to the reduction of compulsory traffic insurance tariff and ownership tax cut, ending the year at 157.755 units.

In 2018 and 2019 the market was steady.