Currently chaotic influences in the UK motorcycle market are by no means exclusive. Faced with struggling economies throughout Europe, the USA, and even Japan, money is too tight to mention for many consumers.
BMW TRYING TO BE CLEVER
This early in what could prove to be a fraught fiscal year, BMW Motorrad is keeping its cards very close to the corporate chest in a distinctly difficult market environment. During the first quarter of 2025, most Motorrad parameters showed signs of stumbling. Total revenue in this three-month period fell by 7.6% to £686.2m. Operating profit was 28.3% down to £64.7m. Operating margin declined from 12.2% to 9.4%. Pre-tax earnings were 29.2% lower at £63.8m. Net profit sank by 30.7% to £44.3m. The brand’s global retail motorcycle and scooter sales retreated by 3.9% to 44,609 units.
Flagging a fresh angle, the BMW Group’s Q1 statement highlighted a stable demand situation in its motorcycles segment, where deliveries to customers are predicted to increase slightly owing to the full availability of models, including the R1300 GS Adventure, but then ran out of excuses. The segment operating margin is apparently expected to range between 5.5% and 7.5% – well below where it is now – and the segment return on capital employed (RoCE) should remain between 13% and 17%, no significant change on an annual outlook basis.
Hunting more reasons to be cheerful, BMW Group noted a rebound in exports ahead of anticipated US import tariffs. But it couldn’t ignore the fact that while inflation rates have stabilised in both the US and Europe, geopolitical developments and trade tensions have now become persistent sources of risk, so higher tariffs and the associated upward pressure on prices could cause inflation to rise again.
€-£ currency translation at forex rates applicable on 7 May
DUCATI PROFIT DIVE
Admitting to a “slow start” in the first quarter of 2025, Ducati’s reduced revenue and retail sales were a reflection of challenging market conditions and the precursor of worse news.
As the solitary motorcycling member of Volkswagen’s luxury-oriented Brand Group Progressive, and its weakest performer behind Audi, Bentley and Lamborghini, quarterly Ducati turnover fell by 6% to £209.3m. The consequence was a dramatic 43.7% dive in operating profit to £12.8m. Operating margin declined from 10.5% to 6.3%, although the Bologna-based company claimed these poor results were partly offset by a better model mix and positive pricing effects.
Total production during the period was 0.8% down to 16,779 units. Dual/Hyper segmental output, featuring cash-cow Multistrada leadership as well as Hypermotard and Desert X models, grew by 10.1% to 7760 units. Sport, covering Supersport and Panigale, put on 28.4% to 3696 units. Scrambler sub-brand models added 26.3% to 2385 units. Only the Naked/Sport Cruiser segment encapsulating the Diavel, Monster and Streetfighter ranges declined, 39.2% down to 2938 units.
Retail volume worldwide dropped by 3.5% to 11,947 units. Only Sport prospered in any real sense, climbing by 42.3% to 2790 units. Scrambler essentially flatlined, just 0.4% up at 1428 units. Naked/Sport Cruiser fell by 33.2% to 2270 units. Dual/Hyper sunk by a slim 2.5% to 5459 units.
European dealers were responsible for 65% of Ducati’s retail sales, a 1% increase. Sales into China including Hong Kong accounted for just 2%, down from 3%. US purchases amounted to 11%, falling from 12%, although it was obviously too early to factor in any potential impact of tariffs on US foreign imports. Other markets sold a further 22%, rising from 21%.
Audi’s Q1 2025 results statement also flagged up the launch of Ducati’s entry into the motocross firmament with its Desmo450 MX, but didn’t give specific details of imminent market availability, noting only that this will be the first model in a complete range of specialist off-road bikes.
€-£ currency translation at forex rates applicable on 5 May
HARD TIMES AT HARLEY
In the first quarter of 2025, consolidated Harley-Davidson turnover declined by 23.2% to barely scrape a billion quid. Revenue from its main HDMC business making motorcycles, parts, accessories, apparel, etc, was 26.7% down to £815.2m. This shortfall was primarily blamed on a deliberate decrease in global motorcycle shipment volume, which were cut by 33.1% to 38,601 units.
Early retail sales were difficult too. Global deliveries to customers were 21.3% down to 31,010 units. US domestic numbers struggled – 25.3% down to 19,207. Canada was 4.3% up at 1685. The EMEA region, predominantly Europe, fell marginally by 1.7% to 5175. Asia Pacific was hammered, 27.7% in arrears on 4362. Latin America retreated by 6.4% to 581.
Revenue from the HDFS business providing POS consumer credit and inventory finance for US dealers slipped by 1.5% to £184.5m. However, HDFS operating profit rose by 18.9% to £48.3m. Reduced provision for bad debts and lower operating costs were largely held responsible for this glimmer of forlorn hope.
Q1 performance for Harley’s LiveWire electric bike spin-off was lamentable. Revenue slumped by 41.7% to £2.06m, as volume plummeted by 71.8% to only 33 units sold. The resultant operating loss was £14.9m.
Consolidated operating profit for Harley-Davidson as a whole dived by 38.8% to £123.2m. Net profit plunged by 43.4% to a mere £100.3m.
Harley’s soon-to-depart chief executive Jochen Zeitz (who has recently managed to fend off forcible board-room expulsion by disgruntled activist investors, but is still committed to retirement this year once a suitable replacement has been found) desperately spun some excuses.
“Our first quarter results were ahead of expectations in many areas, while retail sales in the US came in softer than anticipated,” he pleaded. “We remain focused on navigating the challenging economic and tariff environment, through diligent execution of our cost productivity measures, supply chain mitigation, tight operating expense control and reducing dealer inventory. In addition, we remain committed to driving retail sales through increased marketing initiatives.” Maybe he just discovered the BOGOF miracle?
$-£ currency translation at forex rates applicable on 8 May
FALLING ON YAMAHA’S CORPORATE SWORD
Yamaha’s motorcycle business management made a frank admission that the first quarter of its 2025 fiscal year wasn’t exactly a pretty picture. “Lower unit sales, higher procurement costs and increased R&D expenses, as well as higher labour costs and other selling and administration expenses, led to decreased revenue and profits,” the company confessed.
Total revenue from motorcycle operations during the period fell by 5% to £1.954bn. But operating profit suffered a much more severe 45.6% decline to just £149.6m. Operating margin plunged from 13.4% to 7.7%. Global unit sales were 4.9% down to 1.168 million.
Developed-world revenue was 8.1% down to £496.9m. Within that, Europe dropped by 14.2% to £274.5m and unit sales sank by 8.6% to 53,000. North America managed a much smaller 1.8% turnover retreat at £143.4m, as unit sales flatlined on 26,000. Japan actually increased revenue by 4.9% to £55.2m and saw volume improve by 5.6% to 19,000. Revenue from Asian markets fell slightly by 1.4% to £1.109bn. Unit sales volume was 5.1% down to 901,000. In Latin America and other markets, revenue fell by 11.1% to £346.8m. Non-specific unit volume from these was quoted as 5.6% down to 167,000.
Yen-£ currency translation at forex rates applicable on 15 May