Turkey 2019. Yamaha shine in a market moderately down

Turkish Motorcycles Market has lost 10% in July keeping the annual lost within acceptable level, while the car industry has lost near the half during the same period of time due to the deep economic crisis. Honda recovered the leadership lost last year while Yamaha jumped up 74% and BMW lead premium segment.

 

Economic Environment

Turkish economy likely continued to contract in the second quarter. Private consumption should have been tepid, as suggested by declining retail sales throughout the period, amid still-high inflation and a rising unemployment rate—which reached an over-decade high in May. Moreover, the industrial sector was subdued, as evidenced by falling industrial output in April–June. More positively, the current account deficit narrowed markedly year-on-year, although this was largely due to weak domestic demand. Turning to the third quarter, signs are scarcely more encouraging.

Economic analysts see a further contraction in Q3 before a tenuous recovery takes hold in Q4, thanks to looser monetary policy and a supportive base effect. However, the economy is still seen shrinking over 2019 as a whole. Currency volatility and geopolitical tensions cloud the outlook.

 

Market Trend

According to data released by the Turkish Association of Motorcycles Manufacturers, the Turkish two-wheeler industry is performing in the 2019 better than expected when considering the real collapse of the automotive industry .

Indeed during the first half 2019, Turkish two-wheelers sales have been 79.354, down an acceptable 7.3%. Then in July sales were 18.822 (-10.5%).

After having lost the leadership in the 2018, Honda is now back on top of the list, having sold year to date July 15.809 units (-7.0%). In second place there is Mondial with 13.223 units (-18.8%) and in third the last year leader, the local brand KUBA with 12.846 units (-35.9%). 

Behind there is Yamaha which is reporting an astonishing performance with 10.854 sales, up 74.1%. The leader among Premium brands was again BMW.

 

Motorcycles Industry Heritage

This century started up with 53.000 sales in the 2000, well below the level of the record of 94.000 units touched in the 1997 and in the following years was in a sharp crisis with sales fallen down at a record-low of only 16.000 units in the 2002. Then the crisis was over and the market took a rushing path, with sales  near the record in the 2004 (92.000) and then above, with 2005 at 174.000 and in the 2006, in the sky, at the actual record of 390.000 units.

Too fast too soon, and in the 2007 and 2008 sales fell at 192.000 units (the current third best ever level), with a rapid fall at 134.000 in the 2010, a rapid recovery in the 2011, at the current second best record, 199.000.

Since then a progressive slow declining pathway is in place, with 2016 at the lower level in this decade (143.677) followed a recovery in the 2017 due to the reduction of compulsory traffic insurance tariff and ownership tax cut, ending the year at 157.755 units.

According to data released by the Turkish Association of Motorcycles Manufacturers, in the 2018 the market has been surprisingly resilient, ending with an increase of 1%, at 159.339 units, while the economic environment deteriorated rapidly, severely hitting the automotive industry, fallen down by a huge 35%.

Despite the positive score, the Turkish Motorcycles market has lost one spots in the preliminary global ranking falling out in 27th place, overtaken by Guatemala

In the last decade the domestic brands have progressively lost the market control to Japanese brands. However, the strong lira depreciation in 2018 has penalized all importers with local brands and local producer gaining consistently in volumes and market share.

Indeed, Honda has been the market leader between the 2013 and the 2017, but in the 2018 it was overtaken by Kuba, which increased sales by a spectacular +49% ending the year not far from 30.000 units. Kuba is a local company established in the 2004 and operating in Gaziantep with an annual production capacity of 120.000 among scooters, motorcycles, tricycles and ATV. In 2018 was back on top of the market after 5 years.

In second place ranked Honda with 24.729, losing 17.0%, and actually under the attack of the third, Mondial, very close with 24.626 units (+11.1%).

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