Following the hottest summer on record, the weather in September took on a more traditional early-autumnal pattern, with unsettled conditions alternating with late-summer spells of sunshine.
The used motorcycle market continues to perform well, with overall sales remaining buoyant. Demand is consistent across most segments, especially mid-range machines.Stock supply is generally healthy, though some dealers have struggled to replenish inventory fast enough to meet demand, particularly for smaller capacity geared machines. However, most dealers are satisfied with their current stock levels for the time of year.
Some dealers have seen an uptick in riders exiting the market, leading to more stock offers. Although this makes stock acquisition less challenging, coupled with a lack of younger riders entering the market it further raises concern about industry decline. With the upcoming autumn budget, the final quarter of the year could be tough.
New Motorcycle Market
Data published by the Motor Cycle Industry Association showed a marginal decline in September, with registrations 2% behind last year. This is an improvement compared to August’s statistics. The adventure and scooter categories continue to grow, while road sports also recorded an uptick. Meanwhile, year-to-date registrations to the end of September were 15.2% behind last year.
Recent feedback suggested that some dealers have enjoyed a strong season. As well as tempting manufacturer offers, dealer closures has increased the catchment area for remaining dealers. Some manufacturers revised their stocking plans this year, giving dealers more control, reducing pressure to be overstocked and retain stronger profits.
Geared 125cc up to mid-range machines continue to perform well, with Royal Enfield facing increasing competition from manufacturers now offering similar models, which is eroding its market share. Meanwhile KTM is showing tentative signs of recovery after a challenging start to the year. As with the used market, the autumn budget could lead to a challenging final quarter of the year for the sale of new machines.
Outlook
Early October saw the first major storm of autumn impact the UK. However, it has been dry overall with fair riding conditions for the time of year.
Glass’s expects values to ease across certain segments in the coming weeks but remain firm for the majority.
Paul McDonald
Senior residual value analyst