Tag Archives: vehicle sales

Motorcycle sales continue to dive

Australian motorcycle sales took another 8.1% dive in the third quarter which contributes to a 33-month downturn in the industry.

By comparison, car sales are down 7.9% last month which is the 18th month in a row of decline, according to official data released by the Federal Chamber of Automotive Industries (FCAI).

The FCAI figures come during the third annual Ride Your Motorcycle to Work Week.

It’s the economy

FCAI CEO Tony Weber is learning to ride a motorcycle NGK dive
Tony Weber

FCAI boss, Toby Weber, who is learning to ride a motorcycle, says the bike and car sales decline is “in line with the broader economic environment in Australia”.

“We have seen many factors, including multiple weather events, Federal and State elections, and tightened lending practices contribute to the overall economic conditions,” he says.

In the nine months this year, 62,898 motorcycles, ATVs and scooters were sold, compared with 68,460 for the same period in 2018.

Honda was the overall leader with a 23.1% share of the national market, followed by Yamaha with 21% and Kawasaki with 10.6%.

Road bikes dive

The biggest drop was in road bikes, which took a 13.8% dive.

Harley-Davidson was the road bike leader again with a 19.6% share, while Honda had 16.8% and Yamaha 16.6%.

Honda used to lead this segment, but as been hit by Australia Post not buying postie bikes, but converting to three-wheeler electric bikes.

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

Across the industry segments, Scooters defied the trend, with a 14.5% climb in sales during the first three quarters.

Honda held a 39.9% scooter share, followed by Vespa with 14.8% and Piaggio with 14.2%.

The ATV/SSV took a 11.3% dive with Polaris the leader on 28.1% share, followed by Honda 22.5% and Yamaha 19.3%.

Off-road category sales fell 2.4%, led by Yamaha 28.1% share, Honda 27.4% and KTM 18.8%.

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

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