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Global Motorcycle Sales In Free Fall Due To COVID-19

16 Avril 2020 - RideApart

Global Motorcycle Sales In Free Fall Due To COVID-19

When will the downturn end?

Even before the World Health Organization declared COVID-19 a pandemic on March 11, 2020, many financial experts were speculating on the impact of the global crisis. Once motorcycle manufacturers and dealerships closed their doors to observe social distancing orders and promote public safety, we knew that the market could undergo a massive reduction in productivity and sales.

Now that economic reports for the month of March are available, we're able to assess the impact on the industry—and it isn't good. We all knew that global motorcycle sales stumbled in 2019, but with the advent of the novel coronavirus, we could see a further decline for markets like India and a contraction of previously growing sectors in Europe.

In India, the world's largest motorcycle market, domestic manufacturers saw steep downturns in March. Year-over-year sales figures declined for Hero MotoCorp (-43 percent), Royal Enfield (-44 percent), Bajaj (-55 percent), and TVS Motor Company (-62 percent) during the third month of 2020.

Foreign makes weren't immune to the economic slowdown with Suzuki India selling 42% less units during the period as well. Not all the news was bad though, as Honda Motorcycle & Scooter India managed to increase sales by 10 percent. Despite the bleak numbers, Suzuki India Managing Director Koichiro Hirao emphasized the company's responsibilities during the global pandemic.

"At present, our first and foremost priority is to ensure the health and safety of the employees and all stakeholders," said Hirao. "As the industry fights the COVID-19 pandemic by implementing shutdowns and taking precautionary measures, we believe that industry will overcome this difficult time and bounce back with positive growth in the coming months."

Though Suzuki India is enduring its own woes during this time, the company still reported a 5.7-percent increase in sales during the 2019-2020 fiscal year.

"We are pleased to close this financial year on a positive note with 5.7 percent growth amid the precautionary measures taken in the wake of the COVID-19 pandemic," stated Hirao.

In Europe, Italy's motorcycle market crumbled with sales numbers plummeting by 66 percent. Scooter and moped purchases fell by 62 percent while motorcycle sales collapsed with a 69-percent reduction. However, the country's motorcycle market also experienced growth in the first and second month of 2020.

Calculating the overall sales for the first quarter of 2020, Italy only dropped 24 percent compared to last year. Regardless of the meager returns, the BMW R 1250 GS sold the most units—presumably to those looking for an apocalypse-appropriate motorcycle.

With the majority of factories and dealerships still shuttered, who knows what April's sales data has in store. Manufacturers are keeping an optimistic eye on the future with hopes that the industry will bounce back once closures and social distancing measures are rolled back. Until we reach that post-COVID-19 world, we'll have to continue speculating about the future of the motorcycle industry.

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