Great Britain 2019. Royal Enfield booms in a moderately positive market

Royal Enfield Continental GT

British Motorcycles Market was moderately positive in the 2019 with total 107.551 sales, up 1.6%. Honda keeps dominating with near 20% of market share, ahead of Yamaha and BMW. While Harley-Davidson lost in double-digit, Royal Enfield scored the fastest increase, up 124%, jumping in 11th place. Suzuki lost 20% and Ducati 5%.

 

Economic Environment

British economy appeared to perform poorly in the fourth quarter, as elevated political uncertainty weighed on activity. Both the services and manufacturing PMIs were in contractionary territory in the period, with firms blaming Brexit and weak external conditions for the soft patch. The labor market, however, remained a chink of positivity: In August–October, employment returned to growth and wage gains were robust, which should be supporting private consumption somewhat.

Meanwhile, in politics, the Conservative Party won an absolute majority in the December elections. As a result, the UK should leave the EU by end-January, and the new administration will likely implement fiscal stimulus, supporting economic activity. However, the government’s recent decision to legislate against an extension to the transition period—which will run until end-2020—leaves the possibility of a no-deal exit next year, which will keep investment muted.

The economy is likely to grow moderately next year. While a looser fiscal stance should aid momentum, lingering uncertainty over the future of the UK-EU trading relationship and the possibility of a no-deal exit at end-2020 will contain business investment.

 

Market Trend

According to data released by the British Minister of Transportations, in 2019 was positive for the British motorcycles industry, with final sales at 107.551, up 1.6% from the previous year, at the third highest level in this decade.

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. 

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 with 2019 sales at 21.150 (+6.0%) holding 19.7% of share.

The second best-selling brand is Yamaha with 11.115 units (-10.6%), with 10.3% of market share.

In third place BMW with 9.235 sales (+4.1%) established the new record in this market.

In forth the British Triumph with 8.036 units (-5.4%) followed by Kawasaki with 7.045 (+0.3%), Lexmoto with 6.603 (+45.5%, but following the huge 2018 drop), KTM with 6.460 (+11.7%), HarleyDavidson with 4.559 (-7.5%), Suzuki with 4.403 (-2.6%) and in 10th place Ducati with 3.119 units (-5.1%).

The fact of the year was the Royal Enfield 121.8% boom jumping in 11th place with 2.935 sales.

 

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