Following a strong recovery in June, motorcycle registrations accelerated in July. Motorcycle Industry Association data shows registrations grew 42% versus July 2019 with all nine categories experiencing increases. However, like last month, it was the scooter category that recorded the strongest growth.
Glass’s Leisure Vehicles Editor Paul McDonald said, “After an impressive rebound in June, registrations gathered pace in July. However, whilst this is great news for the industry, I would suggest caution moving forward as Covid-19 makes its presence felt on the economy and especially the job market”.
Engine band highest registering model July 2020
|0-50cc||Lexmoto ECHO 50||90|
|51-125cc||Honda PCX 125||458|
|126-650cc||Royal Enfield Interceptor INT 650||193|
|651-1000cc||Triumph Tiger 900 GT PRO||109|
|Over 1000cc||BMW R 1250 GS Adventure||207|
Data courtesy of the Motorcycle Industry Association
Sales and demand remained strong through July with reports of records being broken at some dealers. A wide variety of machines are enjoying healthy sales, although scooters and 125’s continue to be registration driving force for dealers close to larger towns and cities. However, there was some evidence of sales activity slowing towards the end of the month as school holidays commenced.
Although demand remains strong, dealers are cautious about the longer-term economic effects of Covid-19 believing the market could feel the effects in September and October when the furlough scheme ends with the inevitability of redundancies and waning consumer confidence.
New stock is an issue for some dealers as demand outstrips supply. Lead times are unknown for certain models with a backlog of orders, whilst some dealers are looking towards early 2021 for deliveries. Used stock availability also continues to be an issue and some dealers believe sales would have been stronger if they had stock to fulfil demand. This situation is improving as elevated new registrations increase part-exchange supply.
What can the industry expect moving forward?
Following a period of ‘pent up’ demand, registrations in August will probably not experience the same level of growth compared to July. However, taking into account the late starting season, activity could still be stronger than a typical August. Moving further ahead, there is a reasonable chance the commuter market will remain buoyant as people return to work, seeking a two-wheeler as a cheaper and safer alternative to public transport. However, now the UK is officially in a recession, there is a chance demand for larger ticket items could suffer as increasing anxiety about job loss hinders consumer spending.
There remains a degree of market uncertainty, with furlough schemes coming to an end and redundancies inevitable. However, given the market currently remains buoyant and the possibility of an extended season due to the delayed start, residual values will remain steady. Taking this into account and some careful consideration, the majority of values have been held for the September guide, except where trade feedback and evidence from the market suggests further adjustments.