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dealers cautiously optimistic, says nmda

Is there now stagnation in the motorcycle market?

With only 0.3% growth in motorcycle registrations for October, is demand cooling with the concerns over Brexit, asks NMDA chief Steve Latham.

“A 0.3% growth to 8573 units means just 22 more motorcycles were put on the road, over and above that of October 2015.

“In sector terms the only substantial growth came from the naked and scooter categories which increased around 7%, although surprisingly the 51cc – 125cc machines recorded a slight decline of 1.7% – the first time for a long time that this sector has shown a reduction in demand.

“If one assumes the fall-off in demand is due to the uncertainties of our leaving the EU, the causes could be two-fold. First, motorcycle riders are concerned what effect a protracted exit negotiation will have on their employment security, inflation and their ability to retain their current living standard.

“Secondly, we have already seen the devaluation effect on our currency. A few manufacturers have increased their retail prices already and everyone is sure that in the coming months all other brands will do the same. All this may be persuading potential buyers to delay replacing their current motorcycles.

“One positive result of this is that two-year-old and three-year-old motorcycles will look better value. This in turn could cause a re-balancing of the dealer’s business model. If this starts to happen manufacturers will be able to upwardly adjust their future values/residual values of motorcycles, thereby retaining the competitiveness and value of acquiring a new motorcycle on a PCP plan.

“Overall, dealers remain cautiously optimistic that demand will hold up near to the current year-to-date growth figure of 6.7% as the final push comes to sell the last of the Euro 3 machines prior to the January deadline.”

www.britishdealernews.co.uk/october-2016-stats

 

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