United Kingdom June. Royal Enfield is the fastest brand in a shy market

British Motorcycles Market

British Motorcycles Market in the first half of the 2019 was moderately positive losing in Q2 the good gain reported in the previous quarter. The deterioration of economic environment suggest a harsh second half with annual sales projected below the 100k. Honda keeps dominating with over 20% of market share, ahead of Yamaha and BMW. Improving 48%, Royal Enfield was the fastest growing brand so far.

 

Economic Environment

British economy has likely lost momentum in the second quarter, after Brexit stockpiling flattered the first-quarter GDP reading. Economic activity contracted sharply in April, albeit in part due to a temporary shutdown at car manufacturing plants. Moreover, the manufacturing PMI dived into contractionary territory in May for the first time in several years on lower export orders. On the flipside, the unemployment rate is at a multi-decade low, while wage growth is comfortably outpacing inflation, which is feeding through to solid retail sales.

This year, muted business investment, coupled with ebbing momentum in key trading partners such as the EU and U.S., will restrain the economy. However, the robust labor market should support private consumption, while a more expansionary fiscal stance should also buttress the economy. The highly uncertain outcome of Brexit remains the key risk to the outlook.

 

Market Trend

According to data released by the British Minister of Transportations, the start of the 2019 was positive for the British motorcycles industry, with first quarter sales at 27.131 units, up 10.2%. This somehow unexpected performance was immediately diluted in the second quarter, which was negative with first half sales at 59.465 units, up a mere 2.9%.

Actually the British market stands as the sixth biggest in Europe,  after France, Italy, GermanySpain and Turkey, while at Global level the market is only 30th, ahead of South Korea and Australia and behind Ecuador and Paraguay.

In recent years the market has been almost stable with the lower peak in the 2012 at 94k sales and the highest in the 2016 at 128k. However, BREXIT effects on economy have cooled demand in the last three years and the 2019 could be ended again below the 100k target.

 

Competitive Arena

The British market is almost concentrated with the Top 10 brands holding 76.6% of the total volume, while 122 brands have registered at least one units in the 2018.

The market leader since years is the Japanese Honda which in the first half 2019 has sold 11.758 units (+10.2%) holding 19.8% of share.

The second best-selling brand is Yamaha with 6.144 units (-8.2%) and with 10.3% of market share.

In third place BMW with 5.500 (+0.6%) with 9.2% of market share, followed by Triumph with 4.885 units (-4.7%), Kawasaki with 4.133 (-2.26%) and KTM with 3.640 (+21.8%).

Royal Enfield improved 153% with 1.589 sales scoring the highest year on year increase.

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