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Registrations in April suffered a substantial decline of 83.5%, due to the UK being in lockdown in the wake of Covid-19. During May, however, the government began the process of easing restrictions, albeit very gradually. Registrations in May experienced less of a dramatic decline. Figures from the Motorcycle Industry Association (MCIA) showed registrations 50.4% behind last year, with all segments declining.
Glass’s Leisure Vehicles Editor Paul McDonald said, “With the country in lockdown throughout May and dealerships remaining closed, another significant decline in registrations was expected. As dealers in England began to reopen their doors on June 1st, activity has strengthened, so the forecast for June is much more positive.”
May top sellers
- Yamaha NMAX took the lead
- Lexmoto LXR125 was runner up
- BMW R1250 GS Adventure remains in the top ten
- Kawasaki Ninja 1000 SX continues its popularity
Dealer and manufacturer feedback
Indications from dealers and manufacturers was positive during lockdown, with encouragingly strong enquiry levels.
Since June 1, dealers in England have been able to reopen and the positive theme continues, with strong demand for new and used machines during the first couple of weeks. Indeed, some dealers are reporting stronger sales activity than normal for the time of year. However, there is concern about stock supply from some manufacturers due to global lockdowns hindering production. There are issues with used stock too, due to fewer recent part exchanges, particularly in March. As a result, dealer stocks are running low and they are currently paying strong money to replenish.
What can the industry expect moving forward?
It is very early days and although activity in the market has burst into life since June 1, the next few months are going to be critical. With many people furloughed on a reduced income and redundancies inevitable as the economy suffers, spending confidence may be hindered. However, as increasing numbers of commuters return to work many of whom may not want to use public transport, the value for money alternative of a motorcycle or scooter could help to boost the market. This could already have started as scooter and moped registration categories suffered the least decline in May.
The used market is likely to fair better this year as economic issues lead to tighter budgets, steering more customers towards used purchases. However, a lack of used stock linked to some very tempting deals on new machines will support some recovery in the new market.
Sales Environment
In view of the market experiencing strong activity and signs of stock availability difficulties, residual values are likely to be buoyant.
Taking this into account and some careful consideration of the current situation, the majority of values have been held for July’s data, except where trade feedback and evidence from the market place suggests further adjustment where necessary.