Tag Archives: sales

Trump’s trade wars bite Harley-Davidson

President Donald Trump’s trade wars are hitting Harley-Davidson hard with a 22% bite in profits to $US426m after a 8.4% drop in international sales in the last quarter.

The Milwaukee company now expects to ship about 212,000 to 217,000 bikes in 2019, compared with their original estimate of 217,000 to 222,000.

Last year Harley opened a factory in Thailand to make motorcycles specifically for the European and Asian markets to avoid the hefty tariffs on US-made products in the trade wars sparked by Trump.

However, there have been delays in the necessary regulatory approvals to ship Thailand-built motorcycles to the European Union.

They have now been approved, so the results may pick up in the latter half of the year.

In Australia, Harley sales were down 19.4% in the first half of the year, yet the brand has returned to the top of the road bike category, leapfrogging Honda which dropped a massive 28.9%.

Tariff bite

Harley CEO and president Matt Levatich says EU tariffs will bite about $100 million out of their annual profits.

Europe imposed duties on $2.4 billion worth of American-made products after Trump levied tariffs on steel and aluminium imports from Europe in 2018.

“Europe is the big issue for the company, about a $100 million a year run rate that we are covering in order to protect our business in Europe, protect our market share, protect our volume, protect the viability of our distribution channel,” says Levatich.

When Harley announced it would open the Thai factory to avoid EU tariffs, Trump tweeted that customers should boycott the company.

Levatich says Trump’s comments “certainly didn’t help”.

“No company wants comments like that made,” he says.

Levatich has also announced that the company will roll out new products “that play very well into strong and growing segments internationally, in particular in Europe”.

That would include the recently released electric LiveWire motorcycle as Europe is one of the biggest markets for electric vehicles.

The LiveWire arrives in Australia late next year probably costing more than $A40,000.

Future growth

Despite the sales decline, Levatich is positive, saying they are now selling to a more diverse and younger customer which lays “a solid foundation for future growth”.

“The decisions and investments we’re making, within a highly dynamic and competitive global marketplace, demonstrate our intense focus to build the next generation of riders and maximise shareholder value,” he says.

He claims their US rider training participation was up, with the greatest increase among 18-34 year-olds.

Of the total US new retail sales in the last quarter, the mix of 18-34 year-olds increased 2.7%.

Tough quarter

In the past quarter, Harley ironically celebrated the sale of their five-millionth motorcycle out of their York factory while they also closed their Kansas City plant.

The 5 millionth customer was Wisconsin resident Walter Bartlett who bought a Heritage Classic.

5 millionth customer Walter Bartlett who picks up his Heritage Classic bite
5 millionth customer Walter Bartlett who picks up his Heritage Classic

In Kansas, about 800 jobs were lost when the factory closed. It had been assembling Harleys since 1997.

Source: MotorbikeWriter.com

Motorcycle veteran’s blunt critique of industry

Retired and honoured motorcycle industry veteran Stuart Strickland has delivered blunt criticism of the industry and the dictators who make motorcycle businesses “unsaleable”.

His comments are part of an exclusive, wide-ranging and quite blunt critique of the local and global motorcycle industry as it faces a sales slump, threats from safety “experts” and an uncertain future in an autonomous motoring world.

Blunt criticisms

Among the motorcycling stalwart’s main criticisms are that the market is dominated with motorcycle enthusiasts and small-capacity scooters and motorcycles are not embraced as they are in European and Asian cities.

He says motorcycle retailers are operating under a “dictatorial franchise system by the importers that has affectively rendered their businesses unsalable”.

Stuart knows what he is talking about. The 70-year-old has more than 40 years’ industry experience and was awarded an Order of Australia Medal in 2012 for his service to motorcycling. (See more career highlights at the end of this article.)

Dealers face tough times says Stuart Strickland mum blunt
Stuart (left) with Isle of Man racer Cam Donald and their wives at the TT

“I was fortunate to have been around in good times where I was able to influence manufacturer policy and able to maintain a great dealer network who were rewarded for their good work,” Stuart says.

“I just wish the managing directors of the manufacturers would get out into the market and talk to the big retailers, in their businesses, regularly.”

Motorcycle market critique

Here are some of his blunt observations about the motorcycle market in Australia (excluding agricultural use).

  • Based on enthusiasts;
  • Never been embraced by State or Federal governments as a legitimate means of moving people around economically;
  • Over-regulated, especially regarding use of land for off-road motorcycle use;
  • Risk adverse millennials show very little interest in motorcycles;
  • Electric-powered bicycles (on-road and off-road) threaten the motorcycle market;
  • Paltry fines for motorists who cause motorcycle accidents (deaths) through inattention;
  • Licence and insurance costs spiralling to ridiculous levels;
  • Motorcycle advocacy lacking funding or recognition for the good work they do which restricts their effectiveness; and
  • Negativity around motorcycle safety, promoted by government road safety authorities.

Stuart says Australia is “fortunate to have half a dozen really smart people working with motorcycle advocacy”.

“They are constructive and their opinions are valued by road safety authorities.”

However, he says they battle with people who have too much time on their hands and are “perhaps uneducated in negotiating with bureaucracy” who “muddy the water”.“As a consequence, government and their agencies say motorcycling is disjointed so they will dictate the policy direction,” he says.

Motorcycle industry critiquetax sale motorcycles novated lease buying selling mum sales rush blunt

Here is a summary of Stuart’s blunt motorcycle industry critique:

  • Retailers operate under a dictatorial franchise system that has affectively rendered their businesses unsalable;
  • No young businessmen/women are entering the industry;
  • An antiquated wholesale system is crippling retailers while their margins are being cut by manufacturers and overheads escalate;
  • A critical shortage of qualified staff (technicians, parts interpreters and sales people) is impacting service levels to consumers and is incapable of being corrected while retailers are not getting a reasonable return on their investment;
  • Retailer profitability has been impacted by on-line activity and ASIC’s stance on retail finance:
  • Retailers have no financial capacity to promote motorcycle sports activities as they have in past boom times: and
  • Retailers are constantly harassed by manufacturers’ incompetent staff, who have no financial nous.

“I am happy to put my name to my comments and by doing so no doubt I’ll be a target for social media from those who have little experience either as a rider, industry figure who has had to battle with bureaucracy over countless years,” Stuart says.

“It’s clear manufacturers are puzzled about the motorcycle market decline.

“Regretfully, they continue to gaze at their own crystal ball for the answer rather than opening up a forum with the likes of yourself, other media, rider clubs and even road safety authorities.

“In situations like we have now the more brains engaged the better.”

However, he rejects the idea of yet another industry committee like America’s Give a Shift.

“I’m not sure what they can achieve, given that America’s motorcycle market has collapsed,” he says.

“I think the manufacturers’ focus is totally on the strong Asian markets.”

Stuart Strickland, OAM, career highlights

Stuart Strickland blunt criticism
Stuart in the 1980s
  • Motor Trades Association of Australia executive chairman Australian Motorcycle Dealers Association from 2014 to his retirement last month;
  • Chairman of the Motorcycle Division of the Federal Chamber of Automotive Industries and life member since 2007;
  • Victorian Motorcycle Advisory Council board member;
  • Australian Scooter Federation co-founder;
  • Ulysses Club member from 1990;
  • Honda Australia MPE managing director 2005-2010, executive 1990-2010 and employee 1981-1990;
  • Honda Australia Rider Training program co-developer 1989;
  • Victorian Automobile Chamber of Commerce motorcycle chair;
  • Director and Board Member, Motorcycling Australia from 2011;
  • Milledge Brothers parts and general manager 1971-81.

Stuart will spend his retirement between his South Gippsland property and Melbourne unit, enjoying his motorcycles and other recreational pursuits.

Source: MotorbikeWriter.com

Election shares motorcycle sales crash blame

A continuing downturn in motorcycle sales, as well as car sales, in the first half of the year has been blamed on the Federal election, floods, drought and tight financial lending.

There is little relief from the bleak news with road bike sales suffering the biggest loss of -17.7% as sales of all motorcycles, scooters and ATVs were down 11.4%, according to official figures from the Federal Chamber of Automotive Industries (FCAI).Election shares sales crash blame

Honda was the overall market leader with a 24.2% share, despite sales down 11.8%.

It was followed by Yamaha with a 21.1% share (sales -11.2%) and Kawasaki with 10.7% share (sales -3.9%).

Following declining sales reports for motorcycles and cars, FCAI boss Tony Weber said:

Over the past six months we have seen various conditions and circumstances which adversely affected the market.  These include a tightening of financial lending, environmental factors such as drought and flood, and a strongly contested federal election.

Despite the usual concern about elections, motorcycle sales actually slowed their slide from -14.6% in the first quarter, the biggest quarterly negative result since the GFC.

In the aftermath of the election there seems a more buoyant mood in the financial markets, although the global outlook is gloomy against a backdrop of trade wars, Brexit and continuing tensions over North Korea and Iran.

Click here for how global motorcycle sales have been trending.

Sales highlights

The most interesting result in the first half of this year was the massive -28.9% result for Honda road bike sales which crashed to third place behind Harley-Davidson and Yamaha.Election shares sales crash blame

Honda’s crash could be explained by the absence of postie bike sales, which is their staple. It could because Australia Post seems to be switching to electric trikes.

Australia Post postie bike electric trike eDV
Australia Post postie bike electric trike eDV

Interestingly, Harley sales were down another 19.4%, yet they returned to the lead in the road bike sales sector.

The only growth in road bike sales was by KTM which was up 9.1%.

Scooter sales also showed a substantial 18.8% increase after years of slides.

BMW nearly doubled its small sales, Honda was up 74% and Suzuki 48%.Election shares sales crash blame

Missing in action

While the above results are compared with the first half of 2018 with the same brands, it should be noted that 23 minor manufacturers are not included in the official FCAI figures.

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

Results by category

Election shares sales crash blameElection shares sales crash blameElection shares sales crash blame

Source: MotorbikeWriter.com

Why don’t more dealers offer test rides?

Despite the continuing slump in motorcycle sales, too many dealers sill don’t offer test rides, one of the most important sales tools they have!

You wouldn’t buy a car without a test ride, so why should riders be denied the opportunity to test out the bike first?

Some dealers don’t even allow customers to sit on their showroom bikes.Please do not sit

US study

A 2015 US motorcycle industry study found that the availability of demo rides not only improved customer satisfaction of dealerships but also increased motorcycle sales.

The ninth annual Pied Piper Prospect Satisfaction Index (PSI) US Motorcycle Industry Benchmarking Study found that test rides were offered 63% of the time to mystery shoppers compared with 34% five years earlier.

It also found sales staff encouraged customers to sit on a bike 81% of the time, up from 70%.

A good dealer experience also translated to improved sales, with dealerships ranking in the top quarter selling 22% more motorcycles than dealerships in the bottom quarter.

It found Harley-Davidson, BMW and Ducati the most aggressive in offering test rides.

It is no coincidence that every Pied Piper study for the past decade or more has been led by those same three companies.

Aussie test rides

While there is no equivalent study in Australia, the results are perhaps indicative of strict global manufacturer training standards of dealer staff and attitudes to offering demo rides.

The lack of demo rides is one of the biggest complaints about dealerships we receive at MotorBikeWriter.com.

But many of these are for popular new models where demand outstrips supply and every bike that comes into the dealership is already sold.BMW Motorrad GS Off-Road Training

Perhaps the most aggressive brands offering test rides in Australia are Harley-Davidson, BMW and Indian.

Harley not only offers test rides to licensed riders, but also offers a static ride to unlicensed riders with their Jump Start program.

It’s rare for any dealer to offer test rides of off-road or adventure bikes because of the risk of damage, but BMW even hosts annual GS demo ride days around the country.

And Indian throws in free fuel and accommodation on their weekend demo ride offers!

We only have our own experiences and anecdotes of readers to go on, but it seems Japanese brands are the worst at allowing test rides.

Maybe that has to do with complacency because they are the four biggest sellers.

Sales trends

But with their sales down between 6.8-17.4% in the first quarter, they need to pick up their act.Slide sales motorcycles

It may cost more to have demo bikes available, but the results speak for themselves.

The motorcycle industry grapples with this basic sales technique.

Some dealers just see the cost of bike depreciation, fuel and staff time to take riders on escorted demo rides, rather than looking at long-term customer goodwill.

It also requires the manufacturers or importers to back them up with demo bikes and allow them to later sell them at a discount.

Riders see buying a bike as a lottery unless they can actually throw a leg over and feel the bike.

They need to evaluate the ergonomics for their body size, hear the noises, test the power and handling, and even feel the heat from the engine.

  • Have you ever been denied a demo ride? What did you do? Did you go elsewhere and buy the same bike or another brand? Leave your comments below.

Source: MotorbikeWriter.com

Two-wheeler global sales slide

Australia isn’t alone in the motorcycle sales slump with global sales down 5.4% in the first quarter of 2019, mainly due to slumps in the largest motorcycle markets, India and China.

Federal Chamber of Automotive Industries (FCAI) motorcycle spokesman Rhys Griffiths says the contraction of Chinese and Indian markets is one of the biggest threats to the future of motorcycling.

Rhys says the “gradual gentrification of Chinese society means the aspirational purchase is no longer a motorcycle, but a car”.

“This represents a gradual move away from motorcycles as a mode of transport,” he says.

“Maybe the Indians will follow as they become more prosperous,” he says.

Last year India surpassed China was the biggest motorcycle market in the world with more than 20 million motorcycle sales, up 2.6m from the previous year and almost double the sales of just seven years ago.

However, in a worrying trend, sales in India started to slow late last year and have continued to slump this year.

If the global sales slide continues, motorcycle companies will see less profit and therefore less money will be spent on research and development of new models.

Good newsRide Sunday trebles charity funds drivers global

There seems to be some good news on the horizon with the European market booming by 23%.

But most of that increase is in e-bikes or pedal-assisted electric bicycles which are counted in the motorcycle numbers, unlike Australia where they are not included.

The official 2018 Australian figures show that sales of road and off-road motorcycles, scooters and all-terrain vehicles were down 8.7% to 95,080.

Since then, sales have picked up their downhill pace with a 14.6% decline in the first quarter of 2019, the biggest quarterly drop since the slide began in 2017 and cause for concern.

An indication of the Aussie slide is the share price for MotorCycle Holdings which is the parent company of TeamMoto dealerships.

Since it went public in 2016 at about $2.50, shares reached a peak of $5.22 at the end of 2017 but plummeted to a record low of $1.08 in early May. They were $1.35 at the close of the ASX on Friday.

global sales
MotorCycle Holdings share price grap

Global sales

ASIA: Motorcycle sales down 8.8 million (-9.9%)

ASEAN: Sales are up 5.9% to 34 million, led by Indonesia with 15% growth, while the big markets of Vietnam and Thailand are dropping.

LATIN AMERICA: Sales marginally down despite 15% growth in Brazil and 15.9% in Colombia. These were offset by heavy losses in Mexico, Argentina and Ecuador.

NORTH AMERICA: USA was down 3% and Canada down 5.2% in 2018 and the trend appears to be continuing in Q1 2019.

EUROPE: Up 23.6% in 27 of 28 countries in the first quarter. Greece was down 2.2%. The fastest sales growth was in Poland (87.3%), followed by Romania (86.9%), Hungary (72%), Lithuania (71%) and Slovakia (+54%). The top five were France (31.8%), Italy (17%), Spain (19.1%), Germany (22.1%) and the UK 10%.

Source: MotorbikeWriter.com

Do you suffer from seller’s regret?

You may have heard of buyer’s regret, but there is also seller’s regret and many riders suffer from this more than buyer’s regret.

If you don’t think riders could ever have buyer’s remorse, read this.

Seller’s regret

Riders can also experience seller’s regret.

Now, we’re not talking about the regret people feel when they get out of motorcycling altogether. This is usually brought on by marriage, the arrival of kids, financial woes or simply getting too old to ride any more.

We are talking about the regret you can feel when you have sold a bike to buy another.

You will go through a honeymoon period with your new bike, loving all the extra power, tech, comfort, etc that it offers.

Some of it can be tied up in buyer’s regret if they think they made the wrong decision. Then, they convince themselves that they should never have sold.

Even if you love your new bike there could be some time down the road where you develop a tinge of regret that you sold your old bike.

It could be a physical feature that is missing from your new bike or it could just be the intrinsic value it held because of the places and adventures it took you on.

It can also be regret about the amount of time you spent customising it and getting it suited to your style. After all, you never recoup that time and expense when you sell.

Some riders sell because they want to move to a different type of riding. A typical example is going from sportsbikes to adventure bikes, then they miss the track days! (Or vice versa.)

My collection of regrets

Seller's regret motorcycles CX500 Triumph bonneville scrambler
My sons-in-law with my bikes on the rare occasion I had more than one at a time

On several occasions motorcycle and car collectors have told me they became a collector simply because they never sold anything.

If you think about it, you may have quite a collection now if you had never sold a bike.

But economics, garage space and an abrasive spouse usually means selling a bike is inevitable and can lead to regret.

I probably suffer seller’s regret more than a lot of other riders because I am tempted by so many new bikes I get to road-test.

For example, in the past 20 years, I have owned 19 bikes! Most of the time I only have one in the garage at any one time.

Consequently, I have left behind a trail of gems that could have been the makings of a great motorcycle collection.

Perhaps my two biggest seller regrets are a BMW HP2 Enduro and a Ducati GT1000. The latter was rare and appreciated in value while the latter had been customised to a high standard and you always lose money on accessories.

Ducati GT1000 carbon wheels farkle project tall used
Why oh why did I sell the Ducati GT1000?

How to avoid seller’s regret

Here is a list of things you can do to avoid that feeling of regret when you inevitably sell your motorcycle for an upgrade:

  1. Don’t sell it. Find a reason to put it aside. Maybe de-register and un-insure it until such time as you want to ride it again;
  2. Sell it to a friend or relative who will let you periodically ride it again, even if it’s just to remind yourself how much better your new bike is;
  3. Take lots of photos of your bike before you sell it. They are good for nostalgia, but also to remind you of the bike’s shortcomings. For example, if it leaks, get photos of the oil on the garage floor;
  4. Never join a maker or model club as you will then have the extra regret of leaving behind club mates when you move to another make or model. However, if it’s an upgrade to the latest model, you may still be able to stay in the club.
  5. Stay in touch with the person you sell the bike to in case seller’s regret is so great you need to buy the bike back. (I still have the phone numbers of the riders who bought the HP2 and GT1000!)

Which bike do you regret selling and why? Leave your comments below.

Source: MotorbikeWriter.com

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

Harley claims buyers are more diverse

Half of all new Harley-Davidson motorcycles are bought by riders aged up to 34 years, female and ethnically diverse, says CEO and president Matt Levatich.

His claims came in the announcement of the 2019 first-quarter results which show global sales down 3.8% to 49,151. Revenue was down $US1.38b (10.2%) and net income down $US127.9m.

International sales were down 3.3% and domestic down 4.2%. In Australia, Harley sales continued their downward trend with a 17.8% drop in a market down 14.6%.

Diverse market

Matt says of the 278,000 new buyers of Harley-Davidson motorcycles in the US last year, half were either under 34, female or ethnically diverse.

“This group is the most diverse across age, ethnicity and gender in all the years we’ve tracked this data,” he says.

“These results continued into 2019. Of the total U.S. new retail sales in Q1, the mix of 18 to 34-year olds was up 2.6 percentage points and the number of young people participating in Riding Academy and taking test rides was also up over last year.”

Diverse Harly-Davidson riders women youth
Harley’s Riding Academy

He also says “young adults” also comprise a quarter of the “initial interest” in the electric LiveWire which is due in September in the US and Europe at $US29,990 (about $A42,500).

It will arrive in Australia late next year.

Harley-Davidson Livewire electric motorcycle specs strikes diverse
Harley-Davidson Livewire

Trade wars

Matt says the company faced several sales hurdles in the past year, “including the impact of the ongoing trade wars”.

The trade wars started when President Donald Trump erroneously complained about 100% tariffs on Harleys into India.

It has since escalated into hiked tariffs on Harleys into Europe and China and higher US tariffs on imported steel and aluminium. Harley has not put a figure on the increased cost of raw materials but Polaris last year said it cost them $30m.

However, Matt says their new Thai factory that opened late last year has helped alleviate the tariff problems in the “emerging ASEAN markets”.

“The tariff mitigation we realised allowed more competitive pricing and access to more customers,” Matt says.

“As a result, we saw Q1 retail sales in emerging ASEAN markets increase by 126%.

“We plan to supply China from Thailand by the end of the year, further leveraging the value of this aspect of our strategy.”

The 10 ASEAN members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

Harley-Davidson Australia spokesman Keith Waddell says the company has confirmed to them that “motorcycles for Australia will not be assembled in Thailand”.

Source: MotorbikeWriter.com

Motorcycle sales slide picks up pace

Motorcycle sales are continuing their slide and even picking up pace with a 14.6% drop in the first quarter of 2019.

It’s the biggest quarterly drop since the slide began in 2017 and cause for concern.

Some of the sales decline could be due to the uncertainty in the economy owing to the impending Federal Election.

According to data released today by the Federal Chamber of Automotive Industries (FCAI), 18,438 motorcycles, ATVs and scooters were sold during the first three months of 2019.

That compares with 21,599 for the same period in 2018 when sales were down 13.4% on the previous year. Sales results for the full year of 2018 were down 8.7%.

All categories were affected by the tumbling pace of sales except scooters which were up 29.6% from a low base eroded over the past few years.

Slide sales motorcycles pace

Pace leaders and losers

Honda was the overall leader with a 21.8% share of the national market, but a 17.4% drop in sales.

Yamaha was second with a 20.8% share (down 8.4% in sales) and Kawasaki with 11.8% (-6.8%).

Road motorcycles fell 19.2% as Harley-Davidson returned to the lead again with a 19.1% share even though Harley sales continued to plummet 17.8%.

Yamaha was second with 18.2% (down 8% in sales) and Honda with a share of 16.6%, but down a whopping 37.9%.

We suspect this is due to Australia Post not buying postie bikes which for the first time in decades are not in the top 10 bikes.postie bike sales tumble electric trike pace

ROAD BIKES

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Honda CB125E 318 432 -26.4%
Yamaha MT07L 281 233 20.6%
Kawasaki NINJA 400 250 139 79.9%
Yamaha MT-09 189 210 -10.0%
Yamaha YZF-R3A 189 286 -33.9%
Harley-Davidson FXBRS 185 208 -11.1%
Yamaha MT03LA 180 202 -10.9%
Honda CMX500 171 192 -10.9%
Harley-Davidson FLFBS 161 107 50.5%
Honda GROM 160 193 -17.1%

The ATV/SSV category showed a decline of 23.7%.Polaris maintained leadership with a 31.2% share, followed by Honda (19.5%) and Yamaha (18.4%).

Off-road sales fell 9.3%. Yamaha maintained its lead with a 27.8% share over Honda (26.4%) and KTM (18.1%).

Top 10 sales by category

Adventure Touring

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Suzuki DR650SE 121 139 -12.9%
BMW R 1250 GS Adventure 97 0 100%
BMW R 1250 GS 85 0 100%
Honda CRF1000 81 100 -19.0%
Kawasaki KLR650 70 79 -11.4%
Suzuki DL650 65 60 8.3%
Suzuki DL1000 44 25 76.0%
BMW G 310 GS 44 66 -33.3%
KTM 1090ADVR 37 54 -31.5%
Husqvarna 701END 37 50 -26.0%
2018 Harley-Davidson Softail Breakout pace
Breakout is top cruiser

Cruiser

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Harley Davidson FXBRS 185 208 -11.1%
Honda CMX500 171 192 -10.9%
Harley Davidson FLFBS 161 107 50.5%
Kawasaki Vulcan S 147 168 -12.5%
Yamaha XVS650/A 140 94 48.9%
Indian Motorcycle Scout 96 147 -34.7%
Harley Davidson FLSB 95 68 39.7%
Harley Davidson FXFBS 54 63 -14.3%
Harley Davidson XL883N 53 70 -24.3%
Harley Davidson FXBB 52 84 -38.1%

Naked

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Honda CB125E 318 432 -26.4%
Yamaha MT07L 281 233 20.6%
Yamaha MT-09 189 210 -10.0%
Yamaha MT03LA 180 202 -10.9%
Honda GROM 160 193 -17.1%
Yamaha XSR700LA 99 77 28.6%
Kawasaki Z900RS 92 126 -27.0%
KTM 390DUKE 78 71 9.9%
Honda Monkey 62 0 100%
Yamaha MT10 58 74 -21.6%
2019 Yamaha YZF-R3 pace
Yamaha R3

Sport Touring

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Yamaha YZF-R3A 189 286 -33.9%
Kawasaki Ninja 650L 95 86 10.5%
Yamaha MT09TRA 57 31 83.9%
Honda CBR650FL 43 69 -37.7%
Kawasaki VERSYS-X 300 41 42 -2.4%
Suzuki GSX-S125 40 18 122.2%
Kawasaki Ninja 1000 35 43 -18.6%
Suzuki GSX-R125 34 15 126.7%
Yamaha MT07TRL 33 18 83.3%
Suzuki GSX250R 26 40 -35.0%

Super Sport

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Kawasaki NINJA 400 250 139 79.9%
Honda CBR500R 82 186 -55.9%
Honda CBR1000RR 67 35 91.4%
Ducati Superbike 58 0 100%
Honda CBR600RR 45 24 87.5%
KTM RC390 39 58 -32.8%
Yamaha YZF-R1 37 32 15.6%
Kawasaki Z400 36 0 100%
Suzuki GSX-R750 35 17 105.9%
Kawasaki Ninja ZX-6R 32 11 190.9%
Here's why Harley's Street Glide Special is our top tourer pace
Here’s why Harley’s Street Glide Special is also our top tourer

Touring

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Harley Davidson FLHXS 112 54 107.4%
Harley Davidson FLHTK 66 34 94.1%
Harley Davidson FLTRXS 47 21 123.8%
Harley Davidson FLHTCUTG 43 36 19.4%
Harley Davidson FLHRXS 41 37 10.8%
Harley Davidson FLHX 30 33 -9.1%
Harley Davidson FLHXSE 29 23 26.1%
BMW R 1250 RT 29 0 100%
Indian Motorcycle Chieftain 19 12 58.3%
Harley Davidson FLTRX 18 5 260.0%

LAMS Approved

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Yamaha WR450F 332 183 81.4%
Honda CB125E 318 432 -26.4%
Yamaha MT07L 281 233 20.6%
Honda NSC110 270 105 157.1%
Kawasaki NINJA 400 250 139 79.9%
Yamaha YZF-R3A 189 286 -33.9%
Yamaha MT03LA 180 202 -10.9%
Suzuki ADDRESS 177 48 268.8%
Honda CMX500 171 192 -10.9%
Honda GROM 160 193 -17.1%
2017 Honda Grom stars eofy pace
Honda Grom

Scooters

January – March 2019 compared with 2018
Manufacturer Model Total
YTD 2019 YTD 2018 % CHAN
Honda NSC110 270 105 157.1%
Suzuki ADDRESS 177 48 268.8%
Vespa GTS 300 111 86 29.1%
Piaggio Fly 150 89 120 -25.8%
Honda MW110 72 45 60.0%
Honda WW150 69 70 -1.4%
Yamaha XMAX300 69 40 72.5%
Vespa PRIMAVERA 150 61 60 1.7%
Honda C125A 47 0 100%
Piaggio ZIP 50 45 73 -38.4%

FCAI members

It should be noted that 22 manufacturers are not included in the official FCAI figures.

They are mainly small-volume importers 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.

Source: MotorbikeWriter.com

Big business discounting is ‘hurting motorcycling’

Big business pushing sales through discounting is hurting the motorcycle industry in Australia, says a motorcycle importer and multi-dealership owner.

James Mutton is the dealer principal of two multiple-franchise dealerships (Brisbane Motorcycles in Windsor and Caboolture), the Australian importer of Norton Motorcycles and a former British Superbike racer.

Most notably, he is the son of veteran industry identity Brett who put the cat among the pigeons with his 2017 broadside at big businesses for forcing “mum and dad dealerships out of business”.

Brett Mutton Brisbane Motorcycles mum and dad dealer conglomerate
Brett Mutton of Brisbane Motorcycles

Two-year slump

Two years later, much of what Brett said is happening and the industry continues to spiral downward.

James took over the business when brain cancer forced Brett into retirement.

He has similar outspoken views to his father about the motorcycle industry, so we thought it worthwhile sounding him out.

James says the industry is in a two-year slump because of a “multitude of factors that all hit at the same time”.

They include:

  • Tighter finance requirements that prevented many riders from securing finance to buy a motorcycle;
  • Young people did not want to take up the lifestyle. “It’s not an image they want to be a part of,” James says. “The whole VLAD consorting laws and anti-bikies PR couldn’t have helped, even though that’s not what 99% of riders are about.”; and 
  • With a decrease in sales, dealerships could not attract the right staff, which affected customers’ dealership experiences.

Discounting war

James Mutton Brisbane Motorcycles discounting
James in his Windsor dealership

James says the result of the drop in new bike sales volume was that big dealership groups, such as MotorCycle Holdings (a publicly listed company that owns TeamMoto and many other dealerships), began aggressively discounting to increase sales turnover.

While that may sound like a boon for riders, James says it is devaluing their bikes and hurting the industry.

“The MotorCycle Holdings business model revolves around sales volume, finance and discounts,” James says.

“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.”

James says even some of the prestige brands that never used to discount, such as Harley-Davidson, BMW and Ducati, are now discounting.

“Through no fault of their own they are forced by the rest of the industry into running aggressive sales campaigns,” he says.

For example, BMW is currently running a campaign through TeamMoto offering five free years of servicing.

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

He claims customers are now rebelling against the big dealership conglomerates.

“This is a passion-based industry and not big business,” he says.

He could be right. When MotorCycle Holdings went public in 2016, their share price started at $2.53 and reached a peak of $5.22 at the end of 2017. It is now down to just $1.46.

MotorCycle Holdings Ltd share price history Discounting
MotorCycle Holdings Ltd share price history

Solutions

Just as there were many reasons for the slump, James says there are many facets to solving the problem.

“We need a 10-year plan; that’s the amount of damage that’s been done to the industry,” he says.

James suggests that manufacturers, distributors and motorcycle industry organisations collectively fund motorcycle promotion.

“Everyone is scrapping over the last dollar and won’t put their hands in their pockets to pay to promote riding,” he says.

“More needs to be done at a higher level to make more people want to ride.

“The manufacturers are fighting over their share of a diminishing pie rather than trying to grow the pie.

“No one is actively marketing motorcycling in general to make the pie bigger.

“The whole industry is losing with everyone focussing on losing the least amount. We need to build value back into motorcycles.”

Dealers

James Mutton Brisbane Motorcycles discounting Norton
James with his two demo Norton Commandos

James says the problem is too big for just dealers to solve.

“Dealers don’t control the market,” he says.

“All we can do is make the experience good for the customer so they tell other people.

“People want to be remembered when they come back to a dealership.”

James says a key ingredient for dealer success is to offer demo rides.

His dealership even has two expensive Nortons on demo.

“There are some things about bikes you can’t appreciate until you’ve ridden it and feel it,” he says.

Source: MotorbikeWriter.com