Great Britain September. Royal Enfield up 124% in a market moderately positive

Royal Enfield Continental GT

British Motorcycles Market was moderately positive in the first nine months of the 2019 with total 76.305 sales, up 2.9%. Honda keeps dominating with over 20% of market share, ahead of Yamaha and BMW. While Harley-Davidson lost in double-digit, Royal Enfield scored the fastest increase, up 124%.

 

Economic Environment

British economy is expected to recover in seasonally-adjusted terms in the third quarter from the second quarter’s contraction, but growth is likely to remain subdued. This is partly because businesses will be stocking up in preparation for a possible UK departure from the EU on 31 October. Available data are mixed for Q3, but generally supports this narrative: On the upside, economic activity increased in July over the prior month after flatlining in June.

Moreover, the unemployment rate dipped in May–July to the joint-lowest reading since the 1970s, helping to support the second-fastest increase in nominal earnings in over ten years, which should bode well for private consumption growth and help offset persistent consumer pessimism.

The economy is expected to return to growth in Q3, but the outlook beyond that is largely dependent on whether and how the UK leaves the EU on 31 October. Underlying economic momentum is likely to be meek regardless, held back by soft business investment and a downbeat global economy.

 

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%.

The Q3 was moderately negative and Year to Date September figures at 76.305 were up 2.3%.

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.

British Motorcycles Market
2019-Triumph-Bonneville-T120-Diamond edition

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 year to date September sales at 17.595 (+8.0%) holding 19.7% of share.

The second best-selling brand is Yamaha with 9.119 units (-12.7%) and with 10.2% of market share.

In third place BMW with 7.967 (+4.1%) with 8.9% of market share, followed by Triumph with 6.999 units (-3.7%), Kawasaki with 6.188 (+0.7%) and KTM with 5.341 (+20.3%). While Harley-Davidson reported heavy lost (-11.1%), Royal Enfield improved 124% with 2.492 sales scoring the highest year on year increase in the market.

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