May 2012: Economic Problems Have an Impact On Motorcycle Sales
The economic recession that has begun to gradually affect Britain has begun to make an impact on the motorcycle market. Many would think that, as the net income has decreased, that the motorcycle market would decline. Well, this was not necessarily the case. In fact, it seems that it was the other way around.
Because of the decrease in household income, many have begun to reorient themselves to purchase small engine motorcycles like scooters and small motorcycles. This new consumer trend can be easily explained by the costs which this type of vehicle requires and the numerous benefits.
First off, the costs of purchasing a small engine motorcycle and considerably lower than those of purchasing an automobile. Also, the additional costs are considerably lower, from maintenance and parts to fuel costs.
Secondly, the small engine motorcycle is considerably more efficient as a commuter transport vehicle as it is more flexible to manoeuvre in traffic and drivers are able to reach their destination in considerably less time.
The growth of motorcycle sales has been constant over the past couple of months. In January sales grew by 6.3% in comparison with 2011. Small engine motorcycles have recorded the highest growth pattern as 50cc scooters rose by 1.3% and 50cc motorcycle rose by 7.4%. On the other hand sports motorcycles have recorded a decrease in sales by 36% as they have begun to be seen more as luxury items which can be purchased during periods of economic stability.
February continued the trend from the beginning month of the year. The motorcycle and scooter sales grew by 1.4% in comparison with the same month in 2011. Sales of motorcycles with smaller engines than 50cc dropped by 15.8%, while sales of motorcycles with engines of over 50cc had a slight increase of 6%. 125cc engine motorcycles recorded the highest growth with 9.7 %. This is a direct response of the fact that this type of engine offers a particular economical benefit for commuter transport.
March and April recorded the highest growth in sales for adventure sports motorcycles with engines between 50cc and 125cc which rose by 47.5% and scooter bikes which rose by 8.9%. On the other hand sales for small engine scooters of under 50cc dropped by 9.6%.
Currently, of all motorcycle segments, the lowest sales have been recorded in custom, trail bikes, super sports and touring. These products are seen by consumers as being luxury items for the current market. Many might think that high powered engine motorcycles market would also decline, but it has not, because currently there is a segment of consumers that have not yet been affected by the current economic problems. In fact, in February, sales for motorcycles of over 1000cc have increased by 16.1%.
So, as it can be seen from the above information, the current motorcycle market trend records an increase in demand for 50cc scooters and 50cc-125cc motorcycles and a decrease for smaller engines or sports motorcycles. This market trend will automatically influence the correlated markets such as that of tyres. So, we will automatically see additional shifts on these markets in the future to accommodate the change in demand.