GLOBAL MOTORCYCLE MARKET
- European motorcycle market had a total 1.5 Million sales reported in 2020 and electric motorcycle market had a 15% growth rate.
- It is predicted that, by the end of 2021 market will allow to achieve the highest level in this decade, despite the effects of new emission norms, while consumer’s demand will change the mix within the market, accelerating trends in place before pandemic and showing new trends.
- India’s motorcycle sales will contract by 23.7 per cent year-on-year in 2020-21 and motorcycle production to contract by just 16% year on year.
- The motorcycle market in Southeast Asia has nearly reached saturation point. In the region’s largest countries, almost nine out of ten households own a two-wheeler.
- India is the world’s largest motorcycle market and home to numerous motorcycle makers. Demand for scooters, which previously accounted for roughly 10% of total demand, grew to one-third of demand in recent years, and is expected to continue to increase going forward.
Motorcycles play a familiar and vital role in the lives of people around the world, their applications spanning from pure utility, such as the transportation of goods, to personal enjoyment and sports, motorcycles satisfy these needs with its diverse product line-up.
Motorcycles are made to a variety of specifications, each type featuring unique technologies serving its particular use – scooters: used primarily for day-to-day mobility, such as commuting and shopping trips, sports and cruiser models: used widely in urban areas and for long-distance touring, trail models for off-road excursions: and racing machines for road racing, motocross and other competitions.
Two-wheeled motorized vehicles, with or without side cars, primarily for road use, having an engine displacement of 50 cubic centimetres (cc) comes under motorcycle category, can be classified as lightweight, mediumweight, and heavyweight.
Lightweight motorcycles typically have an engine displacement ranging from 50 cc to 500 cc; mediumweight motorcycles from 500 cc to 750 cc; and heavyweight motorcycles from 750 cc and up. Almost all of the lightweight motorcycles and a small portion of the mediumweight motorcycles are sold in the markets globally.
MOTORCYCLE MARKET TRENDS
Recently companies have signed “Swappable Batteries” Consortium for Motorcycles and Light Electric Vehicles made up by Honda, KTM, Piaggio, and Yamaha. The goal is to develop standardized swappable batteries for motorcycles, mopeds, trikes, and ATVs.
The worldwide electrification effort to reduce CO2 on a global scale is accelerating, especially in Europe. For the widespread adoption of electric motorcycles, problems such as travel distance and charging times need to be addressed, and swappable batteries are a promising solution. Considering customer convenience, standardization of swappable batteries and wide adoption of battery systems is vital, which is why the four-member manufacturers agreed to form the Consortium.
Harley-Davidson’s growth plan through 2022, company made inroads with the LiveWire electric streetfighter. All of this hoping they will help to bring in at least 2 million new riders in the U.S. by 2027 and increase their international business to 50 percent of annual volume.
COVID-19 IMPACT ON MOTORCYCLE MARKET
The automotive industry took the biggest hit as the global supply chain had to come to a halt. With customers not purchasing new vehicles, the two-wheeler industry suffered the biggest blow to business.
Asian countries constitute the largest motorcycle sales, especially India, china, Vietnam, Indonesia, and Thailand. European and north American markets did not suffer much, as not all retailers had closed, and traditional sales volume had never been as large as that of Asia
Several manufacturing plants had to temporarily cease production activities due to the shortage of workers who could not return to work sites and followed by transportation issues due to the lockdown. However, with global economies beginning to open up, the motorcycle industry is set to see the release of pent-up demand and a surge in sales
Sales have rebounded by more than 50% in some markets because of the pent-up demand and personal mobility becoming a necessity in the time of the pandemic. This is expected to continue in the short-to-medium term, even after global vaccine is made available completely, as two-wheelers offer a more affordable, convenient, and rapid transportation means than passenger cars.
After global motorcycle giants survive the outbreak and rebuild their companies financially, the next step would be to train their focus on future growth strategies, such as developing more premium motorcycle, innovative, e-mobility and waste management solutions.
GLOBAL MOTORCYCLE MARKET DYNAMICS
Southeast Asia boasts some of the highest two-wheeler penetration rates in the world. High ownership rates are not always good news for companies because they don’t necessarily translate into new sales. In fact, in the last five years, the motorcycle industry in these markets has had a somewhat bumpy ride: on the one hand, Indonesia, Thailand and Indian markets have increased on average by 3.8%, 3.2% and 7% per year, respectively, and on the other, the Vietnamese motorcycle market has grown by a paltry 1% annually.
Motorcycle registrations across Europe dropped steeply in March and April in comparison to the same period in 2019 as a result of the impact of the Covid-19 outbreak. With dealerships closed and economies under lockdown, commercial activity has been virtually paralysed.
Total registrations in the 5 largest motorcycle markets (i.e. France, Germany, Italy, Spain and the UK) fell by 39.6% in March 2020, compared to the same month of 2019. The situation deteriorated even further in April 2020, when combined registrations in the largest markets fell by 74.9%, with some countries contracting by 84% to 96%. The moped segment was equally impacted. The largest European moped markets (i.e. Belgium, France, Germany, Italy, the Netherlands, Poland and Spain) fell by 37.9% in March 2020 on a year-on-year basis. In April 2020, moped registrations in the same markets decreased 55.1%.
Due to the seasonal nature of the market with sales concentrated in the spring, this impact of the outbreak in March and April has placed European dealerships under considerable financial pressure. In addition, dealers are holding an excess of Euro 4 vehicles, which were being readied for the Spring season but which may become unsellable due to regulatory changes.
GLOBAL MOTORCYCLE MARKET SIZE AND FORECAST
Global motorcycle market is estimated at $85 Billion and sales volume of 64.9 Million in 2020 and growing at XX% CAGR till 2025.
- Honda announced that 2020 and newer Honda Africa Twin motorcycles will now support Android Auto, allowing riders with Android smartphones and the Android Auto app to pair their devices with their motorcycles and which had already supported Apple Carplay.
- Ducati has announced that the Multistrada will feature front and rear radar, a first for the motorcycle industry. however, the technology has not made an appearance on production motorcycles until now. The front radar system will complement cruise control function and manage the speed and distance from vehicles ahead of it. The rear radar will warn the rider of vehicles approaching from blind spots.
- CFMoto have a new tech-heavy electric scooter, called the Cyber Concept, it is capable of 0-30mph in 2.9s, has a 70mph top speed and an 80-mile range. Built by Zehoo, the electric division of CFMoto, the Concept will be powered by lithium ion batteries with a 4kWh capacity.
- Kawasaki is exploring hybrid technology and motorcycles with artificial intelligence as they are considered the future of motorcycling, with a bike that combines a small clean running petrol powered engine with an electric motor and battery power.
- BMW have unveiled technologically advanced electric scooter concept that brings their 2017 Concept Link closer to mass production reality. The idea behind Concept was to show without the constraints of internal combustion, the design of a scooter could be radically altered, while also demonstrating its advanced connectivity.
- BMW have created motorbike chain that needs no lubrication and no tension adjustment. The maintenance-free unit is to be made available on the 1000cc bikes and in future all models will follow.