Australia March. In the 2019 the market will fall at the lowest in decades

Australian Motorcycles Market reported a deep 14% lost in the first quarter 2019 projecting the worse year in the last three decades. The already negative trend was enhanced by the weakest GDP growth in almost a decade and all motorcycles brands felt down. The worse in absolute was the market leader, Honda, down 42%.

 

Economic Environment

Australian Annual GDP growth was the weakest in almost a decade in Q1, as falling house prices, soft wage growth and high debt stocks continued to weigh on consumer spending in the quarter. That said, sequential data shows the economy picked-up some steam in quarter-on-quarter terms, sustained by a solid external sector. Turning to the second quarter, the picture remains mixed. Shrinking retail sales and an uptick in the unemployment rate in April bode poorly for private consumption, although a moderation in the rate of decline in home prices may be giving some breath to households.

Growth is set to slow this year, weighed down by shrinking dwelling investment and cooling consumer spending. On the flip side, commodity exports remain a force to be reckoned with. Upside risks stem from improved investor sentiment following the victory of the Liberal-National coalition, while enduring global trade tensions and China’s economic landing cloud the outlook. 

 

Motorcycles Market Trend

Despite a positive Q4, in the 2018 the Australian Motorcycles market has lost two spots in the global ranking falling out of the Top 30, in 32nd place, overtaken by Ecuador and South Korea. Indeed sales fell down the 100.000 units wall at 95.080, down 8.8% and losing for the third year in a row, at the lowest level in this decade and the trend seems to confirm as the Australians have lost interest for the sector.

The almost slow economic trend did not supported a recovery in the start of the 2019 and the industry kept falling down.

Indeed, as reported by the Australian Association of Manufacturers (FCAI) in the first quarter 2019 sales were 18.435, down a deep 14.6%, projecting the year at 65.000 units, the worse figures in the last 20 years.

The market is dominated by two Japanese brands, Honda and Yamaha, fighting for the leadership. Indeed, Honda is leader since 20 years but the rival is reducing the gap, year after year. In the 2018 race, Honda ended with 22.735 sales (-5.9%) and Yamaha with 21.145 (-1.1%) with the narrower gap in this decade, while Kawasaki ranked in third with 9.376 sales (-6.1%). 

In the Q1 2019 Honda sold 4.019 units (-42.5%) while Yamaha 3.841 (-27.4%) and Kawasaki 2.176 (-7.1%).

In fourth place Suzuki with 1.509 units (-22.6%) followed by KTM with 1.447 (-23.1%), Harley Davidson with 1.489 (-15.5%), Polaris with 1.003 (-26.2%), BMW with 532 (-28.2%) and Husqvarna with 503 (-10.0%). 

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