Pandemic hits KTM, Husqvarna and GasGas
Motorcycle makers have started publishing financial results for the first half of 2020 and, as expected, the pandemic and self-isolation have had a significant impact on motorcycle and scooter sales. Based on the published data, not a single market and not a single company have escaped negative trends. This includes the eternally optimistic Pierer Mobility and its subsidiaries KTM, Husqvarna and GasGas.
New challenges create new opportunities
Group CEO Stefan Piret recently discussed the state of the industry, how new challenges create new opportunities and how brands within the group grow and flourish. However, the sales figures put everything in its place: the pandemic hit the company as hard as its competitors.
Of course, there is some truth in Pire’s words. According to the information contained in the report, the motor market grew by 20 percent in North America and by 39 percent in Australia, as we reported earlier. A number of manufacturers, including KTM, reported sales growth in June 2020 on the back of last year’s results.
However, despite the positive trends in June, in general, the first half of 2020 does not look very good. KTM, Husqvarna and GasGas jointly sold 90,331 units of motor vehicles in the first half of the year, and sales totaled 135,711 units in the same period last year. Thus, we are seeing a 33% drop in sales compared to last year’s figures.
The group also included electric bicycles in the sales figures (of course, 124682 units look nicer than 90331) – that is, 34,351 electric bicycles were sold under the Husqvarna and R Raymon brands… However, even in this form, the result is less than last year’s sales of motorcycles alone.
On the positive side, the group is reporting 170 new hires from early June 2020 to meet growing demand. The group expects strong sales growth in the second half of 2020, which will allow it to end the year just 7 percent behind 2019.