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

Australian Motorcycles Market reported a deep 11% lost in the first half 2019 projecting the worst 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. Harley-Davidson surprised with an outstanding performance.

 

Economic Environment

Growth appears to have remained subdued in the second quarter, after feeble domestic demand weighed on the economy in the first quarter. Anemic retail sales, an uptick in the unemployment rate, and still-falling house prices point to continued weakness in private consumption, while survey-based data signals downbeat investment activity. That said, surging foreign shipments in April-May, propelled by soaring commodity exports, are a testament to the strength of the external sector. Moreover, in June, home prices in Sydney and Melbourne showed early signs of bottoming out.

Growth should slow this year, as high household debt, sluggish wage growth and lower house prices weigh on consumer spending. That said, tax cuts, lower interest rates and looser lending standards for banks are expected to boost spending and growth in H2, while higher revenues should translate into rising infrastructure spending. The main downside risk stems from global trade tensions.

 

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%. The mood did not changed in the second quarter and total sales in the first half 2019 have been 42.458, down 11.4%, projecting the year at 85.000 units, the worse figures in the last 20 years.

The market is dominated by two Japanese brands, Honda and Yamaha, fighting for the leadership.

In the first half 2019, Honda ended with 10.275 sales (-6.8%) and Yamaha with 8.958 (-0.5%) with the narrower gap in this decade, while Kawasaki ranked in third with 4.533 sales (-6.1%). 

.

 

 

Share:

Leave a Reply

Your email address will not be published. Required fields are marked *