Italy. EV subsidies and pent-up demand pushed sales up 40.7% in August

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Italian Motorcycles Market showed a bright trend during August, growing in double-digit (+40.7%). The robust market demand coupled with subsidies’ increase for electric vehicles drove August registrations at 18.680 units sold. Silence, the Spanish brand, conquered the leadership among EVs players, while Askoll slips in the second position.

Two-wheelers sales in August

Italian Motorcycles market is experiencing a strong rebound pulled by consumers’ demand which raised immediately after Covid-19. August recorded a new double-digit growth, in line with the trend of the two previous months. New motorcycles sales grew 40.7% during the month with 18.680 units sold.

YTD August are down 10.6%, with 177.885 units sold. However, as the market is well-performing and it showed good results over the last three months, the full year 2020 projection displays a trend down only 3,5%.

Looking at CC Class grouping, data confirms consumers’ preference toward lower displacements vehicles, while 751-1000 CC-Class and 1001-9999 CC-Class are falling in double-digit. For what concern the electric vehicles, the segment is growing fast, reaching Year to date sales at 6.124 units (+88,2%). Indeed, since the 1st of August the Italian Government decided to increase electric vehicles’ subsidies.

In the first eight months of the year, the top selling manufacturer was Honda with 35.987 units (-15%) ahead of Piaggio with 27.284 (-12.3%) and Yamaha with 20.936 (-1.9%).

Behind Kymco with 16.342 (-9.4%) and BMW, penalized because of the slower demand for high segment models, with 10.268 (-20.5%).

Looking at the emerging segment of electric models, the best seller this year is Silence jumped first with 1.460 sale followed by Askoll with 1.364 units (+11.3%) NIU with 778 (+48,8%).

So far the electric vehicles demand was mainly fuelled by fleet and rental business segment. Matched with our expectations, August showed a boom on private consumers demand, thanks to the e-incentives put in place by the government.

Motorcycles Market Trend

The Italian Motorcycles market was is a good momentum up to the end of February, with a first two months sales volume at 36.489 up 9.3% from the correspondent period last year.

Just 10 days after, all dealers were shut down by the Government’ restrictions and within few days all the OEMs based in Italy have closed the plants.

In March motorcycles sales have been 8.519 (-65%) ending the first quarter with 45.004 units (-25.7%) and in April were 897 (-96.9%).

The lockdown ended on May 6th and clients flow grew up substantially with high demand for individual mobility with astonishing results, with monthly sales at 26.765, down 1.9%, anticipating a rally or following months.

Indeed, in June sales were 42.500, up a robust 35.1% ending the first half 2020 with 113.680 units (-10.3%).

July new motorcycles sales kept the impressive speed of the previous month with total figures at 41.160 (+24.1%), leading to 153.068 Year to Date units (-1,1%).

Market Outlook 2020-2025

The reactiveness of the Italian government to the Covid19 economic impact was outstanding and the country is working with huge sustain in the “new normality”. Moreover, the demand for a more individual mobility and the increased offer of more performing electric scooter will speed up the recovery within our industry.

In the Beyond Covid19 project, we are revising on monthly basis and sharing with our Clients the 2020-2025 motorcycles market outlook and are glad to see this outlook improved now from last month, with full year 2020 projection at 224.000 units, up 3% from the previous year.

The 2021 will allow the market to hit the highest level in the last decade, despite the effects of stage 5 emission level (due in January 2021), while consumer’s demand will change the mix within the market, accelerating trends in place before the virus and showing new trends. A double-digit growth is expected.