EU PTW Market Continues Plunging in 2012 for 5th Consecutive Year

Improving spring conditions may push sales into black

Due to still unsteady peripheral economic conditions in the EU, the EU market for motorcycles, scooters, tricycles and other vehicles in the L-category, has declined the fifth consecutive year in 2012 with another drop of 12.7%, according to ACEM (Association of Motorcycle Manufacturers in Europe).

Post-1997 All-time Low
With little over 1.5 million units sold in Europe, Powered Two-Wheeler sales have reached an all-time low with motorcycles registrations receding to 1997 volumes.

Far from being over, the economic crisis is wreaking havoc on the motorcycle market. A situation of uncertainty across the European Union (EU), linked to declining purchasing power, greater unemployment and absence of measures motivating growth or consumption has kept buyers away from dealerships over the last year, ACEM explains. While Europeans are increasingly making use of powered two-wheelers (PTWs) to satisfy need for mobility, fleet renewal is lagging supply to cause the market to drop in 2012.

Detailed data shows that some 1.537 million PTWs were sold in the EU in 2012, compared to 1.762 million vehicles in 2011, for a 12.7% decline year on year (YoY).

Among the larger markets Italy reported the biggest loss at -22%. Spain was also heavily affected by the crisis (-19%), while France managed to keep the losses above the EU average (-10.6%). Germany (-3.4%) and the United Kingdom (-0.1%) suffered minor decrease in sales.

France Leads
France is confirmed as the largest PTW market in the EU last year, with 296,761 units sold units, followed by Italy (257,779), Germany (178,259), Spain (116,166) and the U.K. (93,666). Interestingly, Italy remains atop the scooter selling countries with 190,675 vehicles sold (including mopeds or PTWs under 50cc), followed by France (173,486), Spain (80,607), The Netherlands (63,146) and Germany (60,103).

Despite its negative impact on the motorcycle market, the economic crisis is highlighting the benefits of urban oriented PTWs which represent 59% of overall sales. A split by engine-cylinder capacity shows that 46% of scooters belong to the moped segment, 31% are light motorcycles (125cc), while 23% of scooters are PTWs over 125cc. Besides mobility factors, access to these vehicles depends on drivers' license type prescribing minimum age and engine size and power limitations. In many EU member states, car drivers are allowed to use light motorcycles (125cc) with transferrable driving rights (type B).

As far as segments are concerned in the EU, mopeds dropped 16.6% while motorcycles sales shrunk 10.6%.

2013?
The 2013 European PTW market has started on a negative note, ACEM says, with January reporting -18.5% growth compared to the previous year. An especially harsh winter is the likely cause of such weak performance, but spring accompanied by improving weather should encourage potential buyers and push sales towards the black, the association predicts.