Strict econo mies don’t stop Europeans from shopping
American motorcycle manufacturers work for the domestic market, so the fall in domestic demand has an extremely negative impact on them.despite the pent-up demand for the same products around the world. There are a number of reasons for this, both economic and political, and one of the main American players, Harley Davidson, is trying to do something about it, taking production outside the United States and planning a large number of new low-volume models available, but it has been swinging for a very long time.
At the same time, the world market does not suffer from stagnation. The past couple of years have seen an increase in sales, for example, in 2018, global motorcycle sales reached the third level – at 62 million units, up 1.8 percent from 2017. The booming Indian market and the nascent Latin American markets – in Brazil and Ecuador – provided moderately optimistic sales forecasts for 2019 at the beginning of the year, however, the first quarter of 2019 showed that those forecasts did not appear to be coming true: sales were down 5.4% from last year and amounted to 14.1 million units. However, there is still hope to catch up at least last year’s figures.
In the most populous continent, sales for the first quarter fell to 8.8 million (down 9.9%). Asia is home to the two largest markets, India and China, both showing extremely modest results since the beginning of the year. It was also unexpected news that one of the fastest growing markets – Pakistan – also showed a downward trend in sales.
Spurred on by the rapid development of the Eastern European markets, the Old World saw strong sales growth of 23.6 percent in the first quarter. Poland (+ 87.3%), Romania (+ 86.9%), Hungary (+ 72%), Lithuania (+ 71%), Slovakia (+ 54%) showed a growth in the market for new motorcycles and provided a boost in the region. France (+ 31.7%), Italy (+ 17%), Spain (+ 19.1%), Germany (+ 22.1%) also contributed to the overall statistics. And even with the country-shaking BREXIT, the UK grew by 10%. Sales growth in Europe has been a trend in recent years, despite increasingly stringent economic regulations.
Unlike the Europeans, the US market continues to lose ground, spending the next year in a decline, albeit insignificantly. The Canadian market fell 5% after several years of steady growth. Argentina and Ecuador showed significant declines, while Brazil and Colombia gained more than 15%. And although there was a ray of hope in the Latin American markets, there were still no positive figures for the first quarter.
Sales in Indonesia were up 15%. Malaysia also posted positive earnings, while Vietnam and Thailand, two emerging markets, posted negative gains. Overall, the region posted sales of 34 million in the first quarter, up 5.9%.
The sales figures for the first quarter are sobering, and now the step is for manufacturers, who will be forced to develop promising products that will ensure sales growth in global markets, even if we are not talking about those products and markets that were initially relied on.