Spain. Electric vehicles massive growth has accelerated market rebound in August

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Silence 2

Spanish Motorcycles industry showed a faster pace in August as the final trend was up 23.1% with 16.768 registrations. A huge growth has been reported in the electric sector, boosted by incentives’ strengthening. However, YTD August outcome is still down in double-digit (-15.9%), with 116.092 units sold.

Two-wheelers sales in August

Spanish Motorcycles Industry accelerated pace in August, closing the month with 16.768 units sold. Spanish post-Covid recovery has been slow until now, where the market trend recorded a plus 23.1%. The first eight months of 2020 registered 116.092 units sold, -15.9%. 

The country is still dealing with a high and growing number of cases, while the Government imposed new restrictions on nightlife from the middle of August. Catalogna bad management of the crisis is limiting individual mobility with further effects on the economy and on consumer’s demand. Furthermore, major European countries are discouraging their citizens from spending holidays in Spain, further deteriorating tourism sector, upon which the country is heavy reliant. 

Thus, August double-digit growth might be related to the electric incentives program. Indeed, the segment registered a massive 366% year on year.

Looking at the distinct categories, the Motorbike +50 and the 2-wheels scooter +50 are both falling -11.5% and -13.4% respectively.

By grouping CC in classes, it is immediately clear the huge growth of electric vehicles during these eight months. Indeed, sales are up 65.1% with registrations at 9.655 units.

Looking at the first seven months ranking by Brand, Honda is on top of the list with 18.836 units (-25.9%), followed by Yamaha with 15.808 (-11.7%), Kymco with 12.395 (-1.1%), Piaggio with 9.527 (-22.9%), BMW with 6.592 (-23%) and Kawasaki with 6.072 (-5.1%).

For what concern the electric vehicles, Silence is the market leader with YTD gain at 78.1%. IMF Industrie reached the second place thanks to the E-PTIO, followed by EMCO, up a massive 298.8%, with 993 units sold.

2020 Motorcycles Market Trend

Following a string of sixth consecutive annual increase, the 2020 was expected again as a very positive year for the Spanish motorcycles industry. The forecast were confirmed in the first two months, with year-to-date February sales at 29.187 units, up 11.8%.

Unfortunately the risk correlated to the development of Covid19 in the country has been underestimated by the government and first measures had been taken only in mid-March with the results that Spain is the second most hit country in Europe, after Great Britain, and the lockdown period was almost extended with near 8 weeks time.

All motorcycles plants (including components manufacturers) and dealerships were closed for near 50 days and in March sales have been only 9.195, down 45.9%, ending the Q1 at 38.432 units, down 10.8%. In April sales were 1.079 (-93.5%) while the re-opening allowed to recover in May, with 11.024 sales (-44.1%).

The post covi19 era could follow a new track, as May sales mix indicates, with electric vehicles jumped at 15.7% of total industry, with all e-scooter brands boosted and with the Spanish Silence in second place in absolute in the market with 1.364 sales, not far from the leader, Honda (1.783, -53%).

In June, the market registered a shy improvement (+6.9%) closing the first half at -27.4% with 73.138 units.

In July the market registered 26.186 units of sale (+10.5%), leading to YTD at 99.324 units, down 20.2%.

Market Outlook 2020-2025 improved in June

June data was higher than expected and, even considering the orders portfolio increased, our outlook on the market has been improved from the previous month

In the Beyond Covid19 project, we are revising on monthly basis and sharing with our Clients the 2020-2025 motorcycles market outlook and in case of Spain, we have increased the future projections.

The full year 2020 sales in Spain is now expected at 197.000 units, down 2,8% from the previous year.

The 2021 will allow the market to be back at pre-covid level, 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.

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Market Heritage

At the end of 2019, the Spanish market ranked third in Europe, after France, and Italy. one place ahead of Germany and Turkey.

At Global level the market was only 25th, ahead of Guatemala , Turkey and Paraguay and behind Germany, Democratic Republic of Congo and Kenya.

Following the 2008-2009 fall, in the recent years the market entered in a positive mood. Indeed, after having peaked down in the 2014 with a record low volume of 135.082, the market has progressively recovered in the last five years, ending the 2019 with 202.000 registrations.

In these years the market changed, with the sharp decline of the 50 cc models demand, the growth of above 50cc scooters, tricycles and quadricycles and the growth of motorbike sector, fueled not only by the traditional Spanish love for this products but also by a strong recovering economy, with growing spending power for leisure goods. 

In terms of volumes and comparing final figures between the 2014 and the 2019, the scooter/moped 50cc segment grew up 14%, the 50cc + scooter/tricycles +18% and the motorbikes +69%, being the only segment with higher volumes in the 2018 compared with 2012.