Tag Archives: Motorcycle Holdings

Motorcycle sales up, but shares slump

Shares in Australia’s biggest motorcycle dealership conglomerate, MotorCycle Holdings, reports increase revenue and bike sales, yet shares have dropped 13.7% to a six-month low.

MotorCycle Holdings, which owns TeamMoto dealerships among others and Cassons accessories, released its six-month results showing new motorcycle sales were up 1% while the total Australian new bike/ATV/scooter market fell 6.1% last year.

The report says their used bike sales were up 6.2% compared with the same period in 2019 and overall sales of new and used were up 3.5%.

Acquisitions

CEO David Ahmet says the company strategy is “growth through acquisitions and diversification”.

Last month, the company acquired rights to sell Indian motorcycles in six of its dealerships: Springwood in Brisbane, Nerang on the Gold Coast, Penrith and Auburn in western Sydney, and Keilor East and Dandenong in Melbourne.Indian Motorcycle Riders Group

It follows the announcement in January that Indian Motorcycle would close its factory owned dealerships in Sydney, Melbourne, Brisbane and Perth this year. A statement on a dealer to replace their Perth store is expected to be made “in the near future”.

MotorCycle Holdings also bought two dealerships in late 2019 which are claimed to be “outperforming expectations”.

The company now has 48 franchises operated from 31 dealerships and eight retail accessory locations in Queensland, New South Wales, Victoria and The Australian Capital Territory.

No interim dividend has been declared so the company can “take advantage of any acquisition opportunities that may arise”.

Shares slump

shares teammotoMotorcycle Holdings share price history

MotorCycle Holdings went public in 2016 at about $2.50 a share, reached a peak of $5.22 at the end of 2017 and hit a record low of around $1.25 in May last year.

The Indian announcement bumped the share price about 5c to $1.80.

However, it is now down to $1.50, despite a 31% increase in revenue to $178.2m.

Apart from the impact of bushfires and coronavirus, the problem seems to be that net profit after tax is now $4.8m for the half year compared with $5.2m for the 2019 comparative six months.

Ahmet says the overall new motorcycle market is beginning to stabilise.

However, January sales figures have actually dropped -10.2% on January 2019.

Source: MotorbikeWriter.com

Indian joins forces with Motorcycle Holdings

Indian Motorcycle Australia will sell their bikes through six more dealerships owned by Motorcycle Holdings Ltd who operate TeamMoto dealerships.

Last month the company surprised its customers when it announced it would close its four company-owned dealerships in Brisbane, Sydney, Melbourne and Perth.

Sources told us it was part of a long-term plan to move from company-owned dealerships to independent dealerships.

However, rather than independents, they have now signed an agreement with the biggest dealership network in Australia. We believe it does not preclude the company from signing on more dealers, including independents.

MotorCycle Holdings has 48 franchises operated from 31 dealerships and eight retail accessory locations in Queensland, New South Wales, Victoria and The Australian Capital Territory.

MCH went public in 2016 at about $2.50 a share, reached a peak of $5.22 at the end of 2017, hit a record low of around $1.25 in May last year and was today trading at $.175.

Today’s announcement has bumped the share price about 5c to $1.80.

New dealerships

MotorCycle Holdings will sell Indian motorcycles at the following locations: Springwood in Brisbane, Nerang on the Gold Coast, Penrith and Auburn in western Sydney, and Keilor East and Dandenong in Melbourne.

A statement on a dealer for Perth will be made “in the near future”.

stores Victory-Indian-Perth-Dealership-Artistic-Render.jpgPerth store opened in 2016

“All locations are anticipated to be operational by mid-2020, a transition that will see a smooth supply and service for existing and new Indian Motorcycle customers as each company-owned Indian Motorcycle dealership closes,” an official Indian Motorcycle Australia statement says.

“The expansion of our dealership network and moving out of the central city locations will give our customers greater and easier access to our dealerships nationwide and provide more than one location in each of the state capitals, providing more options for our customers.

“We have very high standards when it comes to how and where the Indian Motorcycle brand is represented and the level of service our dealerships offer our customers,” the statement says.

“We will be working with MotorCycle Holdings to leverage both companies’ vast retail experience to provide our customers with the exceptional customer service and premium dealership experience that you’ve come to expect from an Indian Motorcycle dealership.

“Each dealership will have a full fleet of new and demo Indian Motorcycles, sell parts, apparel and accessories and be a factory-trained Indian Motorcycle workshop for all your needs.”

The statement says parent company Polaris is working with MCH to keep current staff employed at the new dealerships.

No other market around the world had experienced the luxury of palatial company-owned Indian dealerships which offered a heightened customer service for the revived brand. 

Many in the industry and in the company, as well as customers, acknowledged that it was an excessive and unsustainable business model.

2020 vision

The year ahead looks good for Indian wth the extra dealerships, and the launch of the new Challenger touring range.

It has already got off to a god start wth 69 bikes sold in January which is a 13.1% increase on the previous year in a month when road bike sales tanked were down 5%.

Source: MotorbikeWriter.com

Motorcycle Holdings / TeamMoto to retail Indian Motorcycles

Indian appoints Motorcycle Holdings retail network

Earlier this year, Polaris Inc. announced its intention to move to a solely independent network of Indian Motorcycle dealers in Australia during 2020, a change from the current network structure of both company-owned and independent dealers.

The transition away from company-owned dealerships in Melbourne, Sydney, Brisbane and Perth in favor of a fully-independent network will provide Indian Motorcycle with the opportunity to significantly expand its dealer network to provide customers with greater access to Indian Motorcycle across Australia.

Polaris Inc. have announced that they have entered into an agreement with MotorCycle Holdings Limited (ASX: MTO) to retail the Indian Motorcycle brand through six of their existing dealerships in Queensland, New South Wales and Victoria, vastly increasing the network coverage and support offered by the Indian Motorcycle brand.

MotorCycle Holdings will represent the Indian Motorcycle brand in Brisbane, Gold Coast, two locations in Melbourne and two locations in Sydney. All locations are anticipated to be operational by mid-2020, a transition that will see a smooth supply and service for existing and new Indian Motorcycle customers as each company-owned Indian Motorcycle dealership closes.

Alan Collins
Managing Director of Polaris Australia & New Zealand

“We are very excited to be partnering with Australia’s premier retailer of motorcycles, Motorcycle Holdings, as we write the next exciting chapter for Indian Motorcycle in Australia,” said Alan Collins, Managing Director of Polaris Australia & New Zealand. Both Indian Motorcycle and MotorCycle Holdings share the same vision for the premium experience and service expected by Indian Motorcycle customers, with a commitment to continue the brand experience which has been cultivated so beautifully through our company-owned dealerships over the past years.

“Whilst the partnership with MotorCycle Holdings is a very significant step in our transition to a fully independent network, we will have further network announcements to make over the course of this year to ensure we can provide greater coverage, accessibility and service for Indian Motorcycle customers nationwide, including those in regional Australia.

“We’d also like to reiterate that we anticipate no interruption to sales or customer
service during this transition.”

Indian Challenger Limited

Indian Challenger Limited

Indian Motorcycle

Indian Motorcycle will also be making an announcement in the near future regarding the plans for its dealer network in Perth.

There will be plenty of familiar faces for customers in the MotorCycle Holdings Indian dealerships, with Polaris and MotorCycle Holdings working together in an effort to keep staff from the current company-owned dealerships working with the Indian Motorcycle brand under the new network structure.

Indian Motorcycle will be represented by MotorCycle Holdings dealerships in the following locations:

  • Springwood, Queensland
  • Nerang, Queensland
  • Penrith, New South Wales
  • Auburn, New South Wales
  • Keilor East, Victoria
  • Dandenong, Victoria

Indian Challenger Limited

Indian Challenger Limited

Indian Challenger Limited
Source: MCNews.com.au

TeamMoto offers free licence training

In a bold move to get more riders on motorcycles, TeamMoto has offered free motorcycle licence training if you buy a motorcycle from them this month (May 2019).

It’s a clever sales tactic as sales continue their two-years-plus slide.

While all dealers are feeling the pinch, the most public example is TeamMoto whose parent company MotorCycle Holdings went public in 2016 at about $2.50 a share.

They reached a peak of $5.22 at the end of 2017 and the company is now down to a record low of around $1.25.

MotorCycle Holdings TeamMoto offers free motorcycle licence
MotorCycle Holdings share price

Free licence deal

Other dealers who also do licensed motorcycle training have previously bundled in the cost of getting a licence with the purchase of a bike.

Some have offered refunds on training if you then buy from them. This TeamMoto deal also includes that option.

But we haven’t seen it advertised this way before that you buy the bike and they throw in a free training course.

While it seems a clever idea and a welcome enticement to start riding, buyers should be aware that it’s just another discount on the whole package price.

TeamMoto is a big dealership group with a lot of buying power and has been heavily discounting bikes for some time.

In a recent article Norton importer and multi-franchise dealer James Mutton said this sort of big-business discounting devalues motorbikes and hurts the industry.

James Mutton Brisbane Motorcycles discounting teammoto
James Mutton

“The MotorCycle Holdings business model revolves around sales volume, finance and discounts,” James told us in February.

“Customers are now able to buy a new bike at a really good price but it has no value on resale.

“So there is now a stack of cheap second-hand bikes on the market. Used bike sales are doing well, but at the expense of new bike sales.

“Customers now expect discounts on all new bikes which is a bubble that will eventually burst.”

The discounting is not just on cheap bikes, but also prestige brands.

James says the depreciation in the value of new prestige bikes is eroding the loyalty of riders to these brands and causing long-term damage to brand image.

Legal offer

Despite claims of this deal being morally and financially dubious, some might see the free licence offer as a conflict of interest when the seller is also the trainer.

This was brought up and dismissed in the review of Q-Ride training a few years ago.

However, it is not illegal.

Transport and Main Roads (TMR) says it does not regulate the price of Q-Ride courses. 

“Q-Ride Registered Service Providers (RSP) may also be motorcycle dealers or affiliated with motorcycle dealers,” a spokesperson told us.

“We are aware dealers may sell motorcycles and offer packages where a licence course is included in the price.

“All Q-Ride RSPs must deliver the standardised training curriculum as per the Q-Ride scheme requirements.

“There is no proven link between the price or commercial packaging of a Q-Ride course and the quality of training provided.”

TeamMoto deal

MotorCycle Holdings TeamMoto offers free motorcycle licence
Part of the TeamMoto promotion

The TeamMoto deal is only valid for this month when a learner buys a new or used motorcycle from TeamMoto stores.

If you already have your licence, you can transfer the free training offer to “get your mates riding too”, their advertising says.

“Sometimes just having friends to ride with can double the experience of riding a motorcycle,” it says.

The free certified licence training for this promotion is only available Tuesday to Friday at “Motorcycle Riding Schools” at 59 Moss St, Slacks Creek, and subject to availability.

It is limited to Q-Ride sanctioned courses for pre-learners and RE licence and valid for up to 90 days.

Weekend courses are also available but are not redeemable as part of this offer.

If you complete one of these courses during the promotional period, you can get a refund for the course if you purchase a new or used bike from TeamMoto within 60 days.

Source: MotorbikeWriter.com

Why are bike sales in a two-year slump?

Motorcycle sales are now in a two-year slump in Australia and it’s time to ask what can be done about it.

While it’s good news in the short term for customers with bike companies likely to offer discounts and dealers ready to do dealers, it is not good for the industry and customers in the long term.

It could mean fewer models, less floor stock to choose from, no demo models and distributors for minor brands closing down.

So, we are asking you what can be done about the situation. Leave your comments in the box at the end of this article.

Official figures

The official 2018 figures from the Federal Chamber of Automotive Industries shows that sales of road and off-road motorcycles, scooters and all-terrain vehicles are down 8.7% to 95,080.

2018 Motorcycle Slump
Total motorcycle, scooter, and ATV sales

This is not quite as big a drop as the massive -9.3% last year, which was the first full-year negative result since the GFC.

Honda was the top brand with 22,735 sales, down 5.9% and a 23.9% market share. Yamaha was second with 21,145 (-1.1%, 22.2% share), Kawasaki (9376, -6.1%, 9.9% share), Suzuki (7557, -6.1% 7.9%) and Harley-Davidson (7019, -21.2%, 7.4%).

Usually the most stable category is road bikes, but they are down 9.%.

2018 Motorcycle Slump
Total road bike sales

Harley-Davidson and Honda tied for leader of the road bikes pack, ahead of Yamaha and Kawasaki.

Husqvarna, Indian, Suzuki and Yamaha all had increased sales in 2018 compared with 2017.

Automotive slump

The slump is not contained to motorcycles. New vehicle sales dropped 3%, including a 14.9% drop in December.

Federal Chamber of Automotive Industries (FCAI) Chief Executive Tony Weber blames the automotive slowdown on a slowing housing market, tightening of money lending and the drought.

These effects are being felt throughout the motorcycle industry, but are particularly noticeable in Motorcycle Holdings which owns TeamMoto.

They went public in May 2016 with a share price of $2.80 and hit a high of almost $5 but are now trading at $1.80.

Motorcycle sales were increasing until the GFC hit in 2009. They had been slowly recovering until the first quarter of 2017.

It should be noted that 22 manufacturers are not included in the official Federal Chamber of Automotive Industries figures.

They are Norton, Hyosung, VMoto, Benelli, Bimota, Bollini, CFMoto, Confederate, Daelim, EBR, Kymco, Laro, Megelli, Mercury, MV Agusta, PGO, Royal Enfield, SWM, SYM, TGB, Ural and Viper.

These are mainly small-volume importers and the market figures still show a massive slide in sales.

2018 motorcycle sales

Top 10 Overall – Excludes ATVs
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Honda CRF50F 2159 2361 -8.6%
Yamaha PW50 1953 1845 5.9%
Yamaha TTR50E 1715 1833 -6.4%
Honda CRF110F 1487 1494 -0.5%
Kawasaki KLX110 1246 1457 -14.5%
Yamaha WR450F 1136 1335 -14.9%
Honda CB125E 1113 701 58.8%
Honda CRF230F 1095 1173 -6.6%
Kawasaki NINJA 400 1089 0 100%
KTM 300EXC 1052 610 72.5%
Top 10 by Category – Road Bikes
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Honda CB125E 1113 701 58.8%
Kawasaki NINJA 400 1089 0 100%
Yamaha MT07L 1002 1032 -2.9%
Harley Davidson XG500 944 1182 -20.1%
Harley Davidson FXBRS 794 203 291.1%
Honda CMX500 746 595 25.4%
Yamaha MT-09 738 799 -7.6%
Honda GROM 715 1086 -34.2%
Yamaha YZF-R3A 712 945 -24.7%
Honda NBC110 687 1447 -52.5%
2017 Suzuki DR650SE with free adventure kit slump
Suzuki DR650SE
Top 10 by Category – Adventure Touring
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Suzuki DR650SE 574 488 17.6%
Honda CRF1000 573 753 -23.9%
BMW R 1200 GS Adventure 374 307 21.8%
BMW R 1200 GS 344 472 -27.1%
Kawasaki KLR650 257 303 -15.2%
Honda CB500XA 248 274 -9.5%
BMW G 310 GS 224 48 366.7%
Suzuki DL650 216 189 14.3%
Triumph Tiger 800 XC 182 167 9.0%
KTM 1090ADVR 166 190 -12.6%
Top 10 by Category – Cruiser
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Harley Davidson XG500 944 1182 -20.1%
Harley Davidson FXBRS 794 203 291.1%
Honda CMX500 746 595 25.4%
Kawasaki Vulcan S 670 590 13.6%
Yamaha XVS650/A 515 488 5.5%
Indian Motorcycle Scout 496 383 29.5%
Harley Davidson FXBB 491 109 350.5%
Harley Davidson FLFBS 453 162 179.6%
Harley Davidson FLSB 312 19 1,542.1%
Harley Davidson FXFBS 264 115 129.6%
Top 10 by Category – Naked
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Honda CB125E 1113 701 58.8%
Yamaha MT07L 1002 1032 -2.9%
Yamaha MT-09 738 799 -7.6%
Honda GROM 715 1086 -34.2%
Yamaha MT03LA 616 445 38.4%
Kawasaki Z900RS 393 50 686.0%
KTM 390DUKE 356 361 -1.4%
Yamaha XSR700LA 318 188 69.1%
Honda Monkey 266 0 100%
Triumph STR TRIPLE R 259 219 18.3%
Top 10 by Category – Sport Touring
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Yamaha YZF-R3A 712 945 -24.7%
Honda CBR650FL 331 320 3.4%
Kawasaki Ninja 300 314 1017 -69.1%
Kawasaki Ninja 650L 304 451 -32.6%
Suzuki GSX250R 164 73 124.7%
Yamaha MT09TRA 161 127 26.8%
BMW S 1000 XR 149 118 26.3%
Kawasaki Ninja 1000 148 207 -28.5%
BMW R 1200 RS 135 123 9.8%
Suzuki GSX-S125 130 0 100%
2018 Kawasaki Ninja 400 slump
Kawasaki Ninja 400
Top 10 by Category – Super Sport
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Kawasaki NINJA 400 1089 0 100%
Honda CBR500R 618 996 -38.0%
Honda CBR300R 387 273 41.8%
BMW S 1000 RR 283 295 -4.1%
KTM RC390 254 285 -10.9%
Suzuki GSX-R750 212 145 46.2%
Ducati 959 Panigale 156 264 -40.9%
Yamaha YZF-R1 151 160 -5.6%
Ducati Panigale V4 130 0 100%
Suzuki GSX-R1000 124 269 -53.9%
Top 10 by Category – Touring
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Harley Davidson FLHXS 272 352 -22.7%
BMW R 1200 RT 163 119 37.0%
Harley Davidson FLHTK 143 221 -35.3%
Honda GL1800 119 55 116.4%
Harley Davidson FLHRXS 119 114 4.4%
Harley Davidson FLTRXS 118 130 -9.2%
Harley Davidson FLHTCUTG 117 35 234.3%
Harley Davidson FLHX 109 28 289.3%
Yamaha FJR1300 108 76 42.1%
Harley Davidson FLHXSE 95 33 187.9%
Top 10 by Category – LAMS Approved
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Yamaha WR450F 1136 1335 -14.9%
Honda CB125E 1113 701 58.8%
Kawasaki NINJA 400 1089 0 100%
KTM 300EXC 1052 610 72.5%
Yamaha MT07L 1002 1032 -2.9%
Harley Davidson XG500 944 1182 -20.1%
Suzuki DR-Z400E 793 800 -0.9%
Honda CMX500 746 595 25.4%
KTM 500EXC 746 680 9.7%
Honda CRF250L 719 820 -12.3%
Top 10 by Category – Scooters
January – December 2018 compared to January – December 2017
Manufacturer Model Total
YTD 2018 YTD 2017 % CHAN
Honda NSC110 597 310 92.6%
Suzuki ADDRESS 495 346 43.1%
Vespa GTS 300 389 249 56.2%
Piaggio Fly 150 309 306 1.0%
Honda WW150 295 230 28.3%
Piaggio ZIP 50 244 269 -9.3%
Vespa PRIMAVERA 150 236 187 26.2%
Honda MW110 207 186 11.3%
Yamaha XMAX300 169 39 333.3%
Yamaha GPD150A 126 0 100%

Source: MotorbikeWriter.com