Spain. Motorcycles Market collapsed in March losing 45.9% as shut down effect

Spanish Motorcycles Market collapsed in March losing 45.9% as consequence of all commercial activities shut down in place since mid month. The Q1 ended with 38.432 sales (-10.8%) thanks to the positive start, before the Covid19 crisis. The 2020 is the hardest year since the II World War and the motorcycles market will deeply lose sales, with full year 2020 projection down 46.6%.

 

2020 Motorcycles Market Outlook

The start of the year was almost positive in Spain with Year to Date February sales at 29.187 units, up 11.8%.

Unfortunately the risk correlated to the development of Covid19 in the country has been underestimated by the government and first measures had been taken only in Mid-March with the deep risk that contagious will spread over the country in large-scale and the effect on economy and consumer good purchase will be heavy, as in the rest of Europe.                                                                                                                                     

Actually the most commercial activities have blocked in the country and motorcycles dealers are shut down, at the moment for 15 days, but presumably for a period between 45 and 75 days.

As the other European countries, the Government announced to be ready do whatever its take to fight against the negative economic impact of the activity block, that the evolution is almost uncertain as the entire global community is fighting against something never experienced in the last 3 centuries.

In March sales have been only 9.195, down 45.9%, ending the Q1 at 38.432 units, down 10.8%.

From this months, following our Clients request, we started releasing forecast on our industry evolution. Of course, there are many different possible scenario and we are taking the mid level, while a worst and a better alternative trends are even totally realistic.

In our scenario, the motorcycles market will be heavy hit in the first half with sales declining 52.6%, mainly thanks to the good start already registered.

Since July the market will recover in volume but will remain negative, while just in the Q4 demand will be in line with the previous year, anticipating the 2021 recovery. Our projection for the full year 2020 is at 108.365 sales, down 46.6%.

 

In 2019 motorcycles sales up for the sixth year in a row. Electric segment up 46%.

According to data released by the Minister of Transportation, the 2019 will be remembered as really positive for the two-wheeler industry with sales increased 11.0% at 202.969, scoring the sixth consecutive increase in a string. Thanks to this performance Spain is now back as third market in Europe, overtaking Germany, behind France and Italy.

All segments are growing, with the Motorbikes up 37.5%, the Scooter/Tricycles over 50 cc up 49.0% and the Moped 50cc up 8.2%.

In the first nine months of the year, 11.020 sales have been for electric models, up 46.7%, with two brands, Silence and Askoll holding over 50% of sales.

 

Competitive Arena

Spanish market is almost concentrated with the Top 10 brands holding 74.5% of the total volume, while 178 brands have registered at least one units in the 2019.

As in the past, in 2019 the market leader was Honda with 35.965 sales (+13.0%) holding 17.8% of share. Honda is market leader uninterruptedly since years and just in the 2014 risked to be surpassed by Yamaha, while in recent years the gap over all the followers grew up again.

Indeed, the second best-selling brand actually there is Yamaha with 25.629 sales (+0.5%) and with 12.7% of share.

In third place Kymco with 18.420 sales (+9.1%) and 12.5% of market share.

In fourth place, Piaggio  selling 17.744 units (+8.7%) followed by the best premium brand, BMW with 12.967 sales (+19.5%), SYM with 10.065 (+3.2%), Kawasaki with 8.661 (+17.5%), Suzuki with 6.229 (+10.1%) and KTM with 6.143 (+5.4%). Behind just few brands have lost volume. Among them, Peugeot, down 13.9%, HarleyDavidson, down 7.5% Daelin 11.7%.

 

Market Heritage

At the end of 2019, the Spanish market ranked third in Europe, after France, and Italy. one place ahead of Germany and Turkey.

At Global level the market was only 25th, ahead of Guatemala , Turkey and Paraguay and behind Germany, Democratic Republic of Congo and Kenya.

Following the 2008-2009 fall, in the recent years the market entered in a positive mood. Indeed, after having peaked down in the 2014 with a record low volume of 135.082, the market has progressively recovered in the last four years, ending the 2018 with 182.814 registrations. This data is still far from the market potential, considering that is still 23.1% (or near 50.000 units) below the 2012 level.

In these years the market changed, with the sharp decline of the 50 cc models demand, the growth of above 50cc scooters, tricycles and quadricycles and the growth of motorbike sector, fueled not only by the traditional Spanish love for this products but also by a strong recovering economy, with growing spending power for leisure goods. 

In terms of volumes and comparing final figures between the 2014 and the 2018, the scooter/moped 50cc segment grew up 14%, the 50cc + scooter/tricycles +18% and the motorbikes +69%, being the only segment with higher volumes in the 2018 compared with 2012.

 

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