The recent coronavirus pandemic has shaken the world to its fullest. Almost every industry across the globe got affected. COVID-19 comes with the restriction to move. To stay healthy and safe we have to stay at home and this is the only way to stop the virus from spreading. This restriction on movement impacts most on transportation services. As a result, the automobile industry becomes the first victim of the COVID-19. So do the motorcycle industry as well. In this article, we have discussed the effect of COVID-19 on the motorcycle industry.
Motorcycle Market Before COVID-19
Before the COVID-19 pandemic, the motorcycle market was so much positive for the British motorcycle industry. The industry got the third-highest sales in 2019. The overall sales increased by 1.6% than the previous year. In 2016 the industry got the highest sales and just after the 3 years motorcycle industry see the surge of sales again. There are 10 market drivers that bring the sales in the table for the motorcycle industry. Let’s have a look at how these market drivers perform before the COVID-19
Key Market Drivers of the Motorcycle Industry
Japanese Honda grabs the highest market share in the British motorcycle industry. They grab over 19.7% market shares in the industry. In 2019 they sold 20,819 units motorcycle which was the highest motorcycle sales in the market.
Yamaha was the second-largest key market driver in the industry. They sold over 19,945 units in 2019. They grab almost 10. 3% of the market share.
BMW sold over 9311 units in 2019. Their sales increased by 4.1% from the previous years. They grab third place in the motorcycle industry.
Triumph sold 8036 units in 2019. Their sales decreased by 5.4% compared to the previous year.
Kawasaki sold 7045 units in 2019. Their sales increased by 0.3% compared to the previous year.
Lexmoto sold 6603 units in 2019. They got a significant increase in their sales which is 45.5% compare to the previous year.
KTM sold 6460 units in 2019. Their sales increased by 11.7% compared to the previous year.
Harley Davidson sold 4559 units in 2019. Their sales decreased by 7.5% compared to the previous year.
Suzuki sold 4403 units in 2019. Their sales decreased by 2.6% compared to the previous year.
Ducati sold 3119 units in 2019. Their sales decreased by 5.1% compared to the previous year.
Motorcycle Market After COVID 19
The motorcycle market experience the greatest fall due to COVID 19. The Industry experienced the lowest sales in May 2020. The sales decreased by 50% which is the worst performance in the continent and the deepest quarter in the century. Though the market started with a positive speed from January but from the begging of the COVID 19 the market started to fall. The expert predicted that the overall sales for the year will decrease by 26% compare to the previous year due to COVID 19. The COVID 19 had a great effect on the key market players too and the other stakeholders in the motorcycle industry. Let’s examine how COVID-19 affects the motorcycle industry.
Key Market Drivers Experienced Sales Cut
Honda which was one of the highest sellers in the UK market experienced sales decline in the 2020 fiscal year. They experienced this decline for the first time in five years in 2020.
Ducati, another key market player lost 34% sales in the first quarter of 2020. In Europe, their Ducati sales decline by 42.4% and in China, the sales declined by 60%. The expert predicted that the overall sales will decline by 23% for the whole year.
The biggest downturn was experienced by the British Triumph Motorcycle. Their overall global sales declined by 65%. In the UK their motorcycle sales decreased by 60%. Triumph was the 4th highest motorcycle seller in 2019 in the UK motorcycle industry. COVID-19 not just declined their sales but also bring a huge cut in their human resource. They cut 400 jobs due to COVID-19.
COVID-19 also affects the BMW who was breaking the sales record for 8 years. They reported 21% of sales lost in the 2020 fiscal year.
Impact on the Motorcycle Dealers
The summer used to be a good time for the motorcycle dealers. But due to the pandemic, the whole situation changes a lot. Manufacturers got restrictions for motorcycle sales and the buyers stop buying motorcycles from the dealers. Due to the online sales restriction, the dealers can not buy accessories and parts of the motorcycle. The fate of the motorbike dealers becomes very uncertain. Some of the dealers find it very difficult to survive who are in debt or in mortgages.
One of the biggest motorcycle selling ground used to be the riding events. Motor shows. The pandemic has stopped all of those events. This is another biggest cause of the sales decline in for the dealers, as they can not sell in the events. However, due to the outbreak, the sports events also experience a major shift. Sports events also a great influencer in motorcycle sales. But a prominent event like ACU and MCRCB suspend their racing shows that impact a lot on the motorcycle dealers.
Impact on Motorcycle Manufacturer
The major manufacturing plant for the motorcycle is located in China. Due to COVID-19 most of the manufacturing plants stop working. So it decreases the planned production of the motorcycle. The whole business ecosystem has shaken by this outbreak.
The improvement of the production now solely depends on China’s recovery from the pandemic. The faster China can recover from the pandemic the faster the production of the motorcycle can be started. However, the expert predicted that the 10% production of the motorcycle will be delayed due to COVID-19.
Impact on Sales Order
Numerous customers have canceled on bookings, which were made before the crisis. Also, two-wheelers, which have been sold cannot undergo the registration process for usage, owing to lockdowns. The current situation is an unprecedented one for the industry. Concern over the lack of clarity has been issued by major two-wheeler manufacturers from around the world.
Major premium motorcycle brands such as Harley Davidson and Ducati have already had to shut down a number of their production facilities. The lockdown is expected to impact not only the manufacturers and dealers in the industry but also other businesses in the supply chain including large- and small-scale manufacturers of motorcycle components .
The sales booking for the motorcycle declined at a significant level due to COVID-19. Most of the order got canceled, most registration processes stopped in the middle due to the pandemic. The situation become completely uncertain. It affects overall sales too. No such clear instructions or procedure is provided to continue the whole work. It is like the industry got stuck in the middle without having a clear direction.
Due to this uncertain situation, it affects the major players as well as the small dealers and the business owners. Some countries also impose the restriction on motorcycle sales which result in the decline in the sales order.
Impact On Stocks for Motorcycle Companies
Pandemic had a huge impact on the supply chain, workforce, and the production facility. This creates a complicated situation for the industry. As a result, many companies started to experience a decline in their share price. Some companies experienced a double-digit decline in their share price. Since the situation becomes so uncertain the investor hesitate to invest in the share market.
Impact on Motorcycle Supplies
Some of the supplies of the motorcycle such as tire, brake systems, electronics are not directly produced by the manufacturer. These are outsourced from the vendors. Premium brands use to source supplies from renowned brands like Showa and Ohlins all of them stopped their production that also impacted the market at a significant level. A brand like Dunlop, Pirelli who is the major contributor in the industry has to stop its production due to COVID-19.
Impact on Asia Pacific Market
Asia Pacific region is known to the leading market for the motorcycle. This region has the largest number of motorbike on the road. However, this region prefers more economic brands rather than premium brands like BMW, Harley Davidson, etc. They have to struggle a lot in the Asia Pacific region. But experts started to see a major shift for the premium brand and predict a potential growth before the pandemic but nothing happen due to COVID-19.
We have seen a lot of negative impacts due to this pandemic. But for motorcycle industry, there are some good vibes too. According to the expert, COVID-19 will have major impact on the public transport, as a result, there will be a major demand for the motorcycle or the scooter. In China, companies started to encourage their staff to use personal vehicles like motorcycle or cars instead of using public transport.
The sales and marketing director of Honda motorcycle in India feels optimistic about the sales growth. Though he thinks the sales growth will be slow there will be a growing demand for the motorcycle due to its low price in the continent.
Some experts also predict that the demand for the used bike will be on the rise due to the probable financial crisis due to COVID-19. The buying power for the consumer will be lower and this is the reason the consumer will be more focused on the used bike instead of the new one.
The repair service for the bike will also see the major change in the industry. Instead of operating physically the service will become online and home service. Due to the restriction on human contact, the repair service provider will visit home and provide the service that will lower the chance of the spread of the virus.
Should You Enrol Motorbike Mechanic Course?
As you can predict the situation going worse day by day. The demand for the used bike is expected to have a surge in the coming years. So, you can guess a rising demand for the repairing service too. The buying power for the motorcycle will be decreased, so the consumer will try to repair their motorcycle instead of buying a new one.
The consumer for the used motorcycle also feels demand for the repair service. Since they are buying a used motorcycle, consumers may need the repair service frequently. So you can the demand for a motorcycle repair service will going to be at the peak soon. So, if you enrol the motorbike mechanic course you can earn money by offering this service to the consumer. You can open your own online motor mechanic service center and can provide home service to them.
How to Enrol Motorbike Mechanic Course
One education offers an online motorbike mechanic course. The course will teach you will the essential techniques of the motor mechanic. You will gain the essential skills of motor repair and maintenance. Some of these skills include: how to identifying motorbike components, how to do a pre-ride safety check, how to change an inner tube, cleaning the various mechanical parts, brake and gear adjustments, etc.
This course is fully online, so you can learn it from anywhere and anytime. A perfect course during the lockdown session. You will get a video session and online materials for the course. After successfully completing this course you will get a certificate that is valuable in the industry. The course is only 6 hours 50 minutes long but the output of the course is priceless. So, before it is too late enrol motorbike mechanic course now !!
The market for the motorcycle industry is completely uncertain. Though some of the countries started to remove their restriction on the citizen movement some countries didn’t. The situation become completely unpredictable. The world is looking for the day when everything will become normal and started to work like before. But, the reality is, this pandemic has brought a major shift in the lifestyle, in our work style, and in the industry. It impacts almost all the industry and every industry struggling to survive. In this critical moment, a skill of yours can help you to survive in the market. A proper skill that has rising demand and will have a demand can bring you money that everyone is struggling for during the pandemic. So, improve your skill, get ready for the upcoming economic uncertainty due to COVID-19. So, enrol motorbike mechanic course now !!