March 2023 Registrations

Despite MCIA waffle about a “very encouraging” 3.9% registrations hike in March, making up for negative volumes in January and February, you don’t need to be a mathematical genius when it comes to disputing such a hypothesis. Quarterly headline year-to-date figures were precisely 0.6% down to 28,022 bikes. As BDN financial editor Roger Willis reports, that hardly smacks of encouragement.

Total numbers in March were indeed 3.9% higher at 17,443. Motorcycles did best, 10.4% up to 13,876. But scooters fell 6.5% to 2928, trikes flagged an 8.8% loss and mopeds plunged by 44.9%.

Entry-level and delivery fleet ICE fodder in the up-to-125cc range struggled marginally, dropping by a single percentage point. Tight inventory may have been an issue for some of these tiddlers. Only Honda’s PCX 125 scooter figured in significant quantities. The best-selling Yamaha NMax 125, which dominated during January and February, disappeared.

The monthly picture was actually a lot healthier than it might seem at a glance. Traditional new-plate demand for petrolhead steeds – especially in the larger capacity classes – was there in abundance, backed by apparently ample stock availability. A2 machines up to 500cc put on a modest 2.9%. But smiles on dealers’ faces multiplied in the 501cc-plus firmament, which grew by 14.7% to 10,115 units.

The MCIA’s best-selling brands chart highlighted Honda’s supremacy. Its March registrations surged to give it an 18.8% market share, which reflected strength in depth through capacity classes and style categories. Apart from the aforementioned best-selling PCX 125 scooters, Honda’s CB500X and CB750 Hornet models (the latter supported by rave consumer reviews) respectively topped the 126-500cc and 751-1000cc slots. The Hornet was also the most popular Naked and Honda’s NT1100 took the Touring mantle.

In contrast, runner-up BMW Motorrad saw its registrations shrink by 5.2% to 1992 units with a market share of 11.4%. Much solace no doubt came from the brand’s accent on premium pricing. And it at least had a best-seller to boast about. Some 364 samples of the R1250 GS Adventure captured the over-1000cc corner.

Completing the podium, Triumph dealers evidently had plenty of stock and plenty of customers in hot pursuit. The brand registered 1705 bikes, a 26% increase. That relegated Yamaha into an uncomfortable fourth position, admittedly 4.9% up to 1546 but thereby suffering the ignominy of less than half the number plated by Honda.

Kawasaki completed the top five with a slight 2.7% improvement to 1100 registrations and the stylistic accolade of best-selling Road Sport tool for the Ninja 1000SX. KTM followed with a 39.7% recovery to 876 units. And then Suzuki arrived, back in contention with a stupendous 75.9% increase to 867 –  amazing what a relatively small range of attractive and aggressively priced new models can do for brand credibility and dealer confidence.

Royal Enfield’s descent to eighth spot, 7.5% lower at 762 units, belied the fact that its new Super Meteor 650 twin had grabbed the Custom category gong. However, a disruptive influence had also come into play. BSA dealerships finally got some Gold Star stock in their showrooms and 253 of them took the Modern Classic best-seller crown. An Eicher versus Mahindra battle, both masquerading as “British”, has begun.

To close the top-ten chart show, Ducati crept in with 694 registrations, pursued by Harley-Davidson on 521. Lexmoto, which plated 610 units in March last year, was a non-appearance – anecdotally still bereft of new-season inventory.

Before too many optimists jump to conclusions, it’s worth remembering that annualised UK consumer price inflation in February rose again to 10.4%, from 10.1% in January. And then latest March figures saw a return to 10.1%, as stratospheric food costs posted an unprecedented 19% hike. The generalised cost-of-living crisis is still with us, in spades, and energy prices are also still running amok. Business insolvencies are accelerating. A best-guess scenario for motorcycle sales points to restricted growth, led by budget pricing, or stagnation.

March was a successful month for the Powered Two Wheeler market, thanks to an influx of bikes reaching showrooms for the new 2023 plate change. It is encouraging that motorcycle registrations remain positive,” said Symon Cook, head of the National Motorcycle Dealers Association (NMDA), commenting on the MCIA data.

“The motorcycle market’s success continued with a 7.0% increase during March, and a 1.9% increase YTD. Naked motorcycles and Unspecified motorcycles were key sectors, each listing exceptionally good monthly figures. Despite Mopeds’ struggle, PTW registrations had an overall 3.9% increase in March. “ICE-powered machines maintain their dominant position within the market, increasing 8.4% during March and 3.9% YTD. Electric PTW figures were less positive. However, this is attributed to supply issues.

“Honda continues to control the market, with the Honda PCX 125 model achieving 374 registrations.”

Looking ahead, Cook added: “We look forward to seeing how the market unfolds during April. Although demand may soften due to the Easter holidays and other external factors, we remain optimistic and believe motorcycle dealers can continue to hit their targets.”

The latest Motorcycle Market Data published by the Motor Cycle Industry Association (MCIA) shows that registrations increased 3.9% in March 2023 compared to the same month of 2022.

This encouraging result moves the year-to-date tally just 0.6% behind last year, following declines in January and February. As the season gets fully underway, it will be interesting to see if the positives continue against a backdrop of economic uncertainty and increasing cost of living pressures.

Recent feedback from dealers suggests that demand and forward orders in March were generally reasonable, albeit the weather was more of a hindrance, with snow and ice early in the month followed by predominately wet conditions.

The rising cost of living does not appear to be having a significant negative impact so far, albeit a few dealers say they are having a more challenging time. However, with the average rider age now 55-plus, the motorcycle industry could be relatively resilient to economic challenges, as consumers in this age demographic are more likely to be mortgage free and cash rich.

Demand remains steady across the board with new models arriving in dealerships attracting strong interest.

Used Motorcycle Feedback

Following a predominately strong January and February, sales and demand were slightly down overall in March with the weather having more of an impact.  However, activity did recover during the second half of the month. As with new registrations, demand for used bikes was strong across the board, with Japanese brands particularly sought after. Some dealers hold the view that following a few buoyant years for 125cc machines, this market is now showing signs of slowing down.

Stock supply has improved over last year, with more offers from the public and part-exchanges coming through. There is some concern over a potential shortage of newer machines during the next few years as a result of fewer new registrations during the Covid period, albeit this is speculative.  Dealer stock levels continue to be satisfactory overall.

Outlook

We are now nearing mid-spring with daylight hours rapidly increasing and typical weather so far in April with showers combined with sunny periods. Glass’s expects residual values to remain firm across all segments in the coming weeks, albeit certain models will require further adjustment.

Paul McDonald

Leisure Vehicles Editor