Italy June. The market has lost steam ending the first half up a mere 5.7%

Italian Motorcycles

Italian Motorcycles Market ended the first half 2019 with 152.282 sales, up a modest 5.7%, after a strong start of the year. In June the market increased a mere 2% and the second half outlook is not positive, despite available incentives for electric vehicles. BMW shines while Ducati is losing, compared with same period last year.

 

Economic Environment

A second estimate of GDP trimmed down the first quarter’s meager rebound, and revealed a somber picture of the economy. Plunging imports explained the improved performance of the external sector, which boosted the economy out of technical recession, while destocking weighed heavily on GDP growth, as dismal demand prospects prompted firms to lighten inventories. Data for Q2 still points to a limping economy: In April, industrial production contracted again, and the manufacturing PMI remained stuck in contractionary terrain in May.

The economy is poised to stagnate this year, weighed down by languishing domestic demand and slower growth in the EU. Political and fiscal uncertainty and feeble credit extension will likely depress investment, while consumer spending will be constrained by muted productivity growth and weak job creation. The risk of turbulence in the financial markets clouds the outlook. 

 

2019 Motorcycles Market

According to data released by the Italian Minister of Transportations, the start of the 2019 was really positive. After a moderate +3% reported in January, sales improved the speed growing 19.8% in February and 23.9% in March. Total first quarter sales were 60.501, up a robust 16.9%. The second quarter reported a sharp decline in the growth with the first half closed with 152.282 sales (+5.7%).

In June sales were 31.327, up a mere 2% and the second half outlook is moderately negative, despite the last April introduction of government incentive for electric scooters.

Four brands are dominating the market counting together 50% of market share.

The leader is Honda with first half sales at 32.909 (+12.8%) with 21.6% of market share, up 1.2 points from the full year 2018. In second place Piaggio with 23.217 units sold (+1.5%) and 15.2% of market share, down 1.1 points from the full year 2018.

In third Yamaha with 16.863 sales (-5.6%) and 11.1% of market share followed by the Taiwanese rival of Piaggio, Kymco, with 12.930 sales (-9.1%).

The leader among premium brands, BMW, ranks fourth with 10.472 sales (+17.2%), followed by Ducati with 6.322 (-0.9%). 

 

Recent Market Trend

Until the end of the last century, the Italian was one of the most relevant market worldwide. The all time record, established in the far year 2000, with 524.619 sales, was followed by a progressive decline in the demand, at actually the market stands stable at a volume near 50% below the record, while become marginal in the global motorcycles industry chessboard.

According to data released by the Italian Minister of Transportations, after hitting a negative peak of 190.697 units in the 2014, the market in now moderately recovering and is growing since four years.

In the 2018 the fourth increase in a row, sustained by positive demand on motorcycles and on scooter above 50 cc, with full year 2018 sales up at 247.940 (+4.3% vs the previous year).

At the end of the 2018 the market ranked as 21st  in the global ranking and second in Europe after France.

 

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