Thursday, May 7, 2009

Irish motorcycle sector holds the road!

BMW logo harley-davidson Honda logo

There are approximately 38,000 motorcycles on the roads of Ireland. The motorcycle market in Ireland has shown more resilience than the private car sector as the country endures a crushing recession with retail sales lower overall by 21% in twelve months.

The total number of motorcycles licensed for the first time in 2008 was 7,511, a slight increase over the 7,420 licensed for the first time in 2007. Over half of these were used imports.

Motorcycling has become more popular in Ireland. The sales of motorcycles were 59,526 units between 2000 and 2008, compared to 22,674 units between 1990 and 1999.

There is evidence of significant change in the make-up of the Irish motorcycle market which is mirroring corresponding changes in the European Union.

Sales in Ireland of motorcycles with an engine capacity of over 251cc were 22% of the total between 2000 and 2004. The Government statistics were broadened in 2004 to provide greater detail of engine size and used motorcycles imported into the country and these show that there has been a definite swing in favour of heavier motorcycles. Between 2004 and 2008 almost 68% of the motorcycles licensed were over 251cc. The following table summarises the total unit sales between 2004 and 2008

cc

New Units Licensed

2000-2008

Used Units Licensed

2000-2008

TOTAL

2000-2008

% Total

0-50

4,036

271

4,307

12.3

51-125

4,179

668

4,847

13.7

126-250

907

1,271

2,178

6.2

251-600

1,671

4,825

6,496

18.5

601-1,000

3,506

6,728

10,234

29.1

1,000+

2,696

4,389

7,085

20.2

TOTAL

16,995

18,152

35,147

100

The following analysis of the brands licensed between 2004 and 2008 gives an insight into buyer preferences

Brand

New Units
2004-2008

Used Units
2004-2008

Total Units
2004-2008

Market Share
(% Total Units)

Aprila

586

176

762

2.17%

BMW

1,366

1,360

2,726

7.76%

Ducati

247

0

247

0.70%

Gilera

355

27

382

1.09%

Harley Davidson

705

713

1,418

4.03%

Honda

3,423

7,152

10,575

30.09%

Hyosung

285

2

287

0.82%

Kawasaki

652

1,772

2,424

6.90%

Keeway

141

0

141

0.40%

Lifan

48

0

48

0.14%

MBK

297

4

301

0.86%

Peugeot

688

26

714

2.03%

Piaggio / Vespa

760

93

853

2.43%

Suzuki

3,296

2,614

5,910

16.82%

Triumph

117

233

350

1.00%

Yamaha

2,673

2,851

5,524

15.72%

Other

1,356

1,129

2,485

7.07%

TOTAL

16,995

18,152

35,147

The modern motorcycle industry in Ireland owes its origins to the Honda Super Cub which first saw the light of day in August 1958. The 50th anniversary of its creation was celebrated last August. It has become the best selling powered two-wheel vehicle of all time achieving lifetime sales of 60 million units.

Developments in the European Motorcycle Market

According to data produced by acem, the representative body of European motorcycling, motorcycle sales in mainland Europe and Britain peaked in 199 when 2.7 million vehicles were sold. Sales slumped to under 2 million between 2000 and 2002 and there has been a modest recovery since then. The important markets are Germany, Spain, Italy and France. They together with the UK and Holland account for 90% of the market. Italy accounts for a 24% share followed by Spain (17%) and France (19%).

The popularity of mopeds and motorcycles has been transposed between 1997 and 2007, a trend that is also obvious in Ireland. Motorcycles now account for 63% of the market and mopeds 37%. There has been a steady decline in the popularity of mopeds although this has been arrested somewhat in 2005 but the drop in moped sales in Italy has been especially dramatic. The top-three countries for mopeds today are France (22%), Spain (20%) and Germany (17%).

The motorcycle segment has been on an upward trajectory since 1997 although the pace of growth moderated in 2001 and 2002. Italy, Spain and France have shown strongest growth while German motorcycle sales have tapered. The five countries which account for 80% of the motorcycle market are Italy (29%), Spain (18%), France (16%), Germany (11%) and the UK (8%). The 125CC segment is that fastest growing but all CC segments have grown strongly. Today there are 30 million motorcyclists throughout the 27 countries of the EU.

The heavy motorcycle segment (651cc+) achieved sales of 393,300 in Europe in 2008, an increase of close to 50,000 over 2007. Harley Davidson has been making steady progress in Europe having steadily increased its market share from 6.1% i(20,471 units) n 1999 to 10.3% (38,900 units) in the heavy sector.

Honda sold 313,000 motorcycles in Europe in 2008 out of a total output of 9.3 million vehicles.

BMW sales of motorcycles dropped from €345 million in 3 months ending 2008 to €290 million in the 3 months ending 31 March 2009. But, unlike its automobile business BMW motorcycles were profitable, earning a return on sales on 9% in this period.

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