Motorcycle segment in Germany Essay Example for Free

beat backcycle segment in Germany EssayMuch of the demand for two-wheelers in Germany is concentrated on sporty vehicles, typic on the wholey suited for leisure time rather than daily transport. These vehicles make up nearly a third of the total new two-wheeler demand in the country. Enduro bikes which usually have an engine surface smaller than 650cc are the second most popular motorcycle segment, occupying more than a fourth of the total market demand. Source ACEM Market Shares Of Brands Total Market.It is and then not surprising that the segment received a hit from the global economic crisis in 2009, precedeing in more than 17% fewer motorcycles, or 137,045 units, creation shifted compared with 2009, according to estimates from the German Motorcycle Association (IVM). Key players in the industry include Honda Motor, with a market share of more than 14%, followed by Yamaha Motor and BMW with respective market shares of 11. 9% and 11. 5% in 2009. wrinkle Monitor Inter national Ltd Page 48 Germany Autos track Q1 2012 Segment News.No Recovery In Sight For Motorcycles Segment BMI has significantly revised down its outlook for motorcycle sales in Western Europe in view of growing concerns well-nigh weak economic harvest-tide in the key markets of Germany and France, while the large markets of Spain, Italy and Greece are performing worse than evaluate. Estimates from the European motorcycles association (ACEM) show that the market for motorcycles has promise by almost a quarter since 2008 and we expect further contraction in 2012 as the region comes under the influence of widespread austerity measures.Although growth should return to positive territory from 2013, we see little likelihood of the market returning to pre-crisis levels at any time during the forecast period to 2016. Crisis Or intensify Of Preference? Indeed, there is little optimism in the motorcycles segment, with sales for the first three quarters down more than 9% year-on-year (y- o-y), to 1. 23mn units, despite declines of 13% and 15% y-o-y in 2009 and 2010 respectively. The blame partly lies in a sharp reversal in demand from Germany and France, both of which were posting positive growth until H111.To a large extent, this is the upshot of the general use of motorcycles for leisure rather than a means of transport in the region. It is therefore not surprising that as consumer confidence wanes owing to the eurozone crowned head debt crisis, households feel less inclined to make non-essential purchases. All of this comes at a time when sales in Italy and Spain which together account for over 40% of all motorcycles sold in the EU are reporting declines of over 15. 6% y-o-y each.From Bad To Worse Europe Motorcycle Sales Growth (%chg, y-o-y) * BMI forecasts. Source ACEM, BMI Business Monitor International Ltd Page 49 Germany Autos Report Q1 2012 We have accordingly revised down our 2011 sales forecast from a 2% y-o-y decline expected earlier to a much sharper 10. 5% decline. In 2012, we expect a clear divergence in motorcycle demand in the midst of the sise markets. The likes of Germany, France and the UK are likely to return to positive growth, mostly helped by favourable base effects and relatively better economic conditions.Meanwhile, demand in Spain, Italy and Greece pull up stakes be hit by strict austerity measures adopted by their respective governments, mass unemployment and a decrease in consumer wealth. In total, this willing result in a further 0. 25% contraction in motorcycle demand in the region, making it the fifth consecutive year of contraction for the segment. regulatory Costs Although we expect demand to grow thereafter, recovery will be very modest, with the market growing an average of just over 3% y-o-y between 2013 and 2016.Rising ownership rates and insurance costs coupled with an ageing population in the region will significantly dampen consumer interest in motorcycles. Far From Recovery Europe Motorcycle Sal es Historical Data and Forecast f = forecast. Source ACEM, BMI Additionally, we expect the segment to face a mint of regulatory changes, all of which will lead to marked increases in motorcycle prices and will consequently mar growth. The European Commission (EC) is currently looking to amend technology in the sector and make it safer and more environmentally friendly.A policy aimed at gradually moving to stricter emission standards is likely to be effect in place, with the Euro 3, Euro 4 and Euro 5 standards to be made compulsory by 2014, 2017 and 2020 respectively. Meanwhile, the ECs plans to increase safety requirements for motorcycles is most Business Monitor International Ltd Page 50 Germany Autos Report Q1 2012 likely to lead to the mandatory fitting of anti-lock braking systems in medium- and high-performance motorcycles and automatic headlamps in all L-category vehicles (comprising two- and three-wheel powered cycles, mopeds, motorcycles with and without side-cars, on-ro ad quads and mini-cars).For a segment which will still be very fragile, such regulations will indeed be a spoiler. Business Monitor International Ltd Page 51 Copyright of Germany Autos Report is the property of Business Monitor International and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holders express mail written permission. However, users may print, download, or email articles for individual use.