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Motorcycle market faces a challenging 2018, says NMDA

NMDA 01/02/2018

The National Motorcycle Dealers Association (NMDA) which represents motorcycle retailers across the UK, is expecting 2018 to be a challenging year for the motorcycle industry.

The association has carried out extensive economic research in order to estimate the size of the foreseeable market for this year, taking into account the strong global economy which has a predicted growth of 3.9% in 2018, and the sterling which is back to its pre-Brexit strength of $1.40.

In 2017, despite uncertainty over Brexit, the UK economy grew a modest 1.8%, however demand for motorcycles continued their downward trend with the year-end registrations down -18%, (23,177 less bikes) on the previous year. In total, 105,467 bikes were sold in the year.

One of the main factors for this was the final quarter of 2016 pre-registrations of Euro 3 light weight bikes by the December 31 deadline, which were the sold throughout the year, hence reducing the demand for new registrations.  It was estimated that around 12,250 power2wheelers were forced registrations, predominantly 125cc machines. Most of these machines have now found new owners and should not affect consumer demand for new bikes this year.

Looking closely at all these figures, the NMDA estimates that bike sales should increase modestly by 3.27% with 108,924 registrations, closely resembling the Motorcycle Industry Association (MCIA) prediction of 108,450 registrations. Glasses Guide has predicted a market of 110,000 - 115,000 registrations.

Upper Estimate

2017

2018

Difference

0-50cc

7,871

6,783

-1,088

51-125cc

31,633

33,778

2,145

126-650cc

17,714

19,245

1,531

651-1000cc

26,888

26,913

25

Over 1000cc

21,361

22,205

844

Total registrations

105,467

108,924

3,457

However, the NMDA is concerned that this challenging prediction could be undermined by issues such as the current surge of scooter related crime in London, the increase in insurance premiums in metropolitan areas for young people, and negative speculation over the ongoing Brexit negotiations.

Therefore, taking into account all of the above scenarios potentially affecting sales, a lower estimate has also been analysed - producing a very similar market to 2017.

Lower Estimate

2017

2018

Difference

0-50cc

7,871

6,244

-1,627

51-125cc

31,633

31,781

148

126-650cc

17,714

18,729

1,015

651-1000cc

26,888

26,968

607

Over 1000cc

21,361

21,968

607

Total registrations

105,467

105,175

-292

The NMDA has estimated an increase in sales in all sectors, with the exception of the 0-50cc machines. This is due to the fact that this sector has been steadily declining for some time now and in December 2017 there were between 700 - 800 motorcycles pre-registered to elevate the 50cc Euro transition.

Whilst 2018 is set to be a challenging year for motorcycle dealers, we are optimistic that some of the traditional and leisure riders will return to the showrooms to purchase the latest bikes for the new season and in return stabilise the bike market.

 

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Notes to Editors: 

Stephen Latham, Head of the NMDA is available for interview.

About the RMI

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.