Data published by the Motor Cycle Industry Association (MCIA) showed that registrations in June declined by 5.8%. This is disappointing to note after a few months of growth, especially now that the season has reached its peak. Meanwhile, the year-to-date registrations to the end of June were 0.7% behind last year.
Feedback from dealers in June suggested a tough market with quieter activity, following reasonable demand in May. It is believed that the run-up to the recent general election further hindered consumer spending. Although some dealers did OK for sales of new machinery, this was likely a result of strong manufacturer promotions. However, despite this incentivisation, other dealers are still struggling with lower levels of demand as consumers are reluctant to spend. There was some hope that consumer confidence would improve following the general election, but the holiday season will be upon the market then with potential customers’ priorities moving to holidays over horsepower.
Of the new metal finding favour on showroom floors, the Yamaha MT-09 and XSR900, Kawasaki Vulcan S and Ninja 1000 SX, and the new Honda CBR600RR, are attracting strong interest.
Used Motorcycle Market
The used market in June also had challenges in terms of sales and demand. Strong incentives on new machines were likely to have further hindered the slowdown, with some dealers reporting their new sales being more buoyant than used. As with new bikes, the looming general election also likely contributed to the slowdown in interest.
Harley-Davidson Sportsters are proving popular, the Yamaha MT and Tracer ranges are consistently in solid demand, and the Kawasaki Versys 650 is also doing well. However, some dealers are struggling to identify a pattern of what is selling well due to overall suppressed demand and little consistency.
Outlook
Following the warm but wet spring, June was a dry month, finally providing some consistent fine riding conditions.
July has started cool and is a little unsettled, but riding conditions have been acceptable. At the time of writing, the general election result is in, so we are hopeful that consumer spending confidence will tentatively improve. However, with the holiday season rapidly approaching, when the market typically experiences a slowdown, and combined with strong deals offered on new motorcyces, Glass’s expects residual values to ease during the coming weeks across most segments.
Paul McDonald
Leisure vehicles editor