News, Regulations , ,

Motorcycle sales have slumped more than 10 per cent in the first quarter of the year compared with 2021 but the majority of the decline comes from buyer reaction to the new off-road legislation affecting ATV or four-wheelers.

New ATV rules that require roll-over protection came into effect from January this year, so last year was the last time buyers – predominantly farmers and rural workers – could buy an ATV without the bars.

It also marked many manufacturers abandoning that segment of the market and withdrawing their ATVs from Australia.

ATV sales were higher than average last year as buyers purchased the four-wheelers before the legislation came into force. In combination with strong rainfall in 2021, last year’s motorcycle figures were inflated with the first quarter of 2022 showing sales of agriculture-focused bikes return to normal.

The managing director of listed company Motorcycle Holdings Ltd, David Ahmet, told GoAutoNews Premium that the industry is still dealing with the fallout of COVID-19.

He said a lot of businesses struggled in January when the latest version of the virus took hold and, in his company’s case alone, up to a third of the staff were off at any given time during January and it appeared as if a similar percentage of customers stayed home.

He said that February and March bounced back and his company’s business for March was stronger than 2021.

Further upsetting this first quarter were the huge floods in NSW and Queensland.

Mr Ahmet said this had a profound impact on a lot of businesses.

“We had five dealerships flooded and, obviously, it’s hard to sell motorcycles when you have a metre and a half of muddy water in your dealership for five days,” he said.

“I know the whole of Australia didn’t flood but we did have water lapping at our doors in Sydney as well, so it was widespread.”

Mr Ahmet said it will still be some time before supply is back to normal. 

Honda Pioneer 520

“Whether it is worse than last year I’m not sure, but it does feel like it at times,” he said.

“We still have a large order book of presold bikes and demand remains high. If there has been a change in consumer sentiment, we haven’t seen it and given the above circumstances I think things have been pretty good and much better in March than January.”

The downturn was exacerbated by sagging sales of off-road bikes, down 17.2 per cent, against a welcome increase of 12 per cent for road motorcycles, selling 9723 units for the quarter for a stake of just under 40 per cent of total motorcycle sales.

The Federal Chamber of Automotive Industries (FCAI) reported that a total of 24,338 motorcycles, scooters and off-highway vehicles (OHVs) were sold between January and March, a decrease of 10.7 per cent on the corresponding period in 2021.

Off-road motorcycles recorded 39.6 per cent of overall sales with 9644 units sold, a decrease of 17.2 per cent on Q1 2021.

Road motorcycles accounted for 39.9 per cent of total sales, recording 9723 units sold, an increase of 12 per cent on Q1 2021.

The OHV market recorded a drop of 40 per cent on 2021 figures. This amounts to a total of 3275 units sold representing 13.5 per cent of the total market.

Scooters made up the smallest portion of first quarter sales with 1696 units sold. This represents an increase of 15 per cent on 2021 figures and 7.0 per cent of total units sold.

FCAI chief executive Tony Weber said: “Motorcycles, scooters and OHVs are a crucial element in the lives of many Australians, be it on the road or for recreation.”

“In a period of rising fuel costs and increased congestion, now is the time for states and territories to implement nationally-consistent licensing regulations for motorcycles and scooters. 

“Enabling more motorists to move to motorcycles and scooters is a key tool in helping to lower the cost of living and reducing the amount of time road users spend in traffic.”


Footnote: The sales numbers issued by the FCAI are not completely accurate.

As Australian online motorcycle publication mcnws.com.au points out, not all brands on sale are represented in the FCAI’s official figures.

These include brands under the UMI group such as MV Agusta, Royal Enfield and Reiju, along with others under Mojo Motorcycles such as Sherco, CF Moto, Kymco and SWM.

Mcnews.com.au said that these companies and the brands they represent are not included in the sales figures as they have chosen not to be members of the FCAI.

This is the same as Tesla not reporting its sales figures because it also is not a member of the FCAI.

MCNews estimates that these motorcycle brands represent around 10-15 per cent of the whole market, thus the data is formulated from audited figures that cover around 85-90 per cent of the motorcycles sold in Australia.

By Neil Dowling

Manheim
Manheim
Gumtree
Manheim
MotorOne
DealerCell
PitcherPartners
AdTorque Edge
Gumtree
Schmick