According to the Motorcycle Industry Alliance (MIA), the number of registered motorcycles in the UK in July sharply decreased by 26.8% compared to the same period last year, to 10400 units. Motorcycle sales in the first seven months of this year also dropped by 16.8%.
The Blue Grid of the Motorcycle Industry Alliance stated that the high unemployment rate makes it unaffordable for young people aged 18 to 21 to afford small motorcycles under 50cc. Lan Ge believes that motorcycle sales have declined due to the overall economic situation, but if the unemployment situation is optimized, purchasing power will rebound.
The executive class aged 40 and above is the main market for heavy-duty motorcycles. These people no longer use bonuses to purchase heavy-duty motorcycles in order to repay bank loans. Blue Ge said that sales of super heavy motorcycles with a displacement of over 1000cc have always been relatively stable, but sales in the first seven months of this year decreased by 8.7% compared to the same period last year, "making it already the best performing market
Bloomberg's data shows that the global motorcycle market with a production value of $50 billion has fallen into difficulties. Although Japanese giant Yamaha Motorcycle became the sales champion in July, global sales still plummeted by 33% during the same period. Honda Motorcycle and Suzuki Motorcycle also experienced significant declines in July revenue of 29% and 27%, respectively.
Ducati, an Italian heavy motorcycle manufacturer, announced that the luxury motorcycle market shrank by nearly one-third in the first half of the year, resulting in a one-fifth reduction in production, or 8000 units, and a 10% pay cut for management. The combined North American and Italian markets account for half of Ducati's sales, but due to credit constraints, North American consumers have difficulty obtaining loans, resulting in a 50% sharp decline in heavy motorcycle sales in the North American market compared to the same period last year.
Coincidentally, Harley Davidson, a heavy motorcycle manufacturer in the United States, has announced the layoff of 1000 employees and the closure of four workshops due to a significant decrease in demand. Harley stated that it can ship approximately 220000 vehicles this year, far less than last year's 303000 vehicles.
Not only is the new car market struggling, but second-hand motorcycles are also lacking in demand. Investment banker Rennick put his beloved Triumph Daytona 675 sports motorcycle up for auction online on June 29th, but no one has inquired about it for over a month. But there were three responses to his online photos of BMW cars, he said, "I think motorcycles are more like luxury goods than cars.
In order to stimulate consumption, the Motorcycle Industry Alliance is planning to spend 1 million euros on advertising, emphasizing the freedom, flexibility, time-saving, and cost saving of motorcycles.
The industry alliance is also considering requesting the UK government to provide the same subsidy policy for motorcycles as for cars, similar to the Italian government. As a result of receiving government subsidies, the sales of Italian scooters in June increased by 31% compared to the same period last year. Italian motorcycle manufacturer Piaggio plans to expand into the Asian market and find another way out.
Fitch Ratings is not optimistic about the prospects of the motorcycle industry and has recently downgraded the rating of Harley Davidson motorcycles, citing "long-term sluggish sales" and concerns that "consumers tend to buy cheaper car models".
