Motorcycles and Scooters - UK - July 2008

SUMMARY

Abstract

Registrations of new motorcycles boomed in 2007 after several flat years. Rising fuel prices and increased road congestion are two factors contributing to this. Media coverage has also inspired more people to look at a two-wheeler as a tool for adventure and fun.

The market continues to be led by the high-performance supersports models, but there are signs of polarisation, with strong growth at the bottom end of the market, with small capacity bikes targeting the commuter sector, while sales of more versatile adventure sports machines outstripped the rest of the market, growing by almost one third in 2007. The market remains very male-dominated, with safety issues being of major concern to potential female buyers, so the challenge for manufacturers and government in the next five years is to further reduce casualty numbers and make motorcycling a safer and more attractive alternative to other forms of transport.

This report examines the market for all powered two-wheelers, including motorcycles and scooters. It considers the factors driving or restricting demand, looks at annual trends in registrations, by type of machine and engine size, profiles the major players in the market and assesses consumer attitudes towards a variety of different aspects of motorcycling.

It considers the hypothesis that 'although short term factors such as fuel prices may give registrations a lift, in order to significantly expand the market for motorcycles in the long term, manufacturers and government will need to work together to address safety concerns and try to further reduce the casualty rate.'

Main themes of the report:

• How new regulations affecting rider testing will affect demand for motorcycles and scooters in the future.
• The impact of the credit crunch and how manufacturers are responding to it.
• What will the new motorcycle and scooter buyer look like in the future?
• With the increasingly congested roads, especially in and surrounding cities, can motorcycles target the consumer looking to 'beat the traffic' more effectively?
• As we are increasingly concerned about green issues and car exhausts, can motorcycles effectively position themselves in consumer mindsets as an eco-friendly drive?
• In a male-dominated market, can the biking industry 'do a Nintendo' (attracting female gamers with the Wii) and make biking a more attractive, relevant, form of transport for women?

TABLE OF CONTENTS

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Market bounces back
• Plenty of potential
• Versatility back in fashion
• Safety and licensing issues holding back sales?
• 'Big three' continue to dominate
• Innovation focuses on safety and convenience
• Promotional strategy shifts
• Generally positive sentiments towards motorcycling
• Internal Market Environment
• Key points
• Existing levels of ownership
  • Figure 1: Own new or second hand
• Buying new
  • Figure 2: Bought new in the last 12 months, 2007
• Road safety: The biggest turn-off
  • Figure 3: Road casualty rates* for vehicles, 1994-2006
  • Figure 4: Road casualty statistics for motorcycles, 2003-07
• Licensing: fundamental changes
• New test centres to cause backlog?
• Further licensing changes in prospect
• EU emission standards
• Media coverage: racing proves the breed but does it sell bikes?
• Low running costs brought into focus...
  • Figure 5: Trends in the average price of unleaded 95 octane fuel in the UK, 2003-08
• ...and not just fuel savings either
• Cheaper to buy, too
• Seasonality
• Motorcycle magazines
  • Figure 6: Total average net circulation per issue (United Kingdom and RoI) of leading motorcycle and car magazines, Jan-December 2007
• Broader Market Environment
• Key points
• Spending power on the up...
  • Figure 7: Trends in personal disposable income and consumer expenditure, 2003-13
• A more affluent population
  • Figure 8: Forecast adult population trends, by socio-economic group, 2003-13
• Age trends: A mixed blessing?
  • Figure 9: Trends in the age structure of the UK population, by gender, 2003-13
• Competitive Context
• Key points
• Spending on personal transport
  • Figure 10: Personal transport trends at current prices, 2003-07
• Two wheels compare very favourably with four and public transport
• Other spending priorities
  • Figure 11: Expenditure priorities, 2007 and 2008
• Competition from bicycles
  • Figure 12: Positive attitudes towards bicycles, 2005 and 2007
• Strengths and Weaknesses in the Market
• Strengths
• Low running costs
• Agility and convenience
• Environmentally attractive
• Affordability
• Sensory stimulation
• Weaknesses
• Safety perceptions
• Credit crunch vulnerability?
• Comfort issues
• Lack of appeal to women and shorter people
• The poor man's alternative?
• Market Size and Forecast
• Key points
• Strong and steady growth for over the longer term
  • Figure 13: Retail sales/new registrations of motorcycles and scooters, 2003-13
• Has the market turned a corner?
  • Figure 14: New registrations of two-wheeled vehicles, by type, 2003-07
• Value has grown faster than volume
  • Figure 15: Average price per vehicle, at current and constant prices, 2003-07
• Early signs for current year looking positive
• Future looks bright as fuel prices rise and congestion worsens
• Transport policy could still tip the balance
• Manufacturers have huge role to play
• Segment Performance
• Key points
• Registrations by type
  • Figure 16: New motorcycle registrations, by type, 2003-07
• Supersports: still biggest sector but for how long?
• UK gets naked
• Scooters: in tune with the times
• Moped scooters: a victim of their own quality?
• Other mopeds on the up once more
• Trail/enduro under pressure
• Adventure/sport boosted by TV inspiration
• Sport/touring feels the pinch
• Custom capitalises on higher living standards and city bonuses
• Touring sector grows on coat-tails of adventure sport success
• Registrations by engine size
  • Figure 17: New motorcycle registrations, by engine size, 2003-07
• Market polarises by engine size
• Motorcycles in use by engine size
  • Figure 18: Two-wheeled vehicles in use, by engine size, 2001-07
• Average engine size increasing
• Market Share
• Key points
• Manufacturer share of new registrations
  • Figure 19: Manufacturer shares of the UK motorcycle and scooter market, by number of new registrations, 2005-07
• Gap narrows at the top
• Piaggio best of European manufacturers
• Peugeot sales slide
• Triumph maintaining domestic pride
• Market continues to be dominated by imports
  • Figure 20: Value of imports and exports of motorcycles, 2003-07
• Brand Communication and Promotion
• Key points
• Main media advertising slips back in 2007
  • Figure 21: Advertising spend on motorcycles by advertiser, 2004-08
• Spend by media type
  • Figure 22: advertising spend by media type, 2004-08
• Press activity dominates
• 0% finance to the fore in the credit crunch
• Racing: A constant part of the mix
• Companies and Products
• Key points
• Leading players' dealerships
  • Figure 23: Number of motorcycle and scooter dealerships, by manufacturer, 2005-07
• Honda (UK) Ltd
• Suzuki GB plc
• Yamaha Motor UK Ltd
• Piaggio Ltd
• Kawasaki Motors UK
• Peugeot (Three Cross Motorcycles Ltd)
• Triumph Motorcycles Ltd
• Harley-Davidson UK
• BMW (UK) Ltd
• KTM-Sportmotorcycle UK Ltd
• Other players
• What is the Extent of Usage of Motorcycles and Scooters?
• Key points
• Motorcycle usage
  • Figure 24: Motorcycle and scooter usage, April 2008
• Opportunity knocks
  • Figure 25: Motorcycle and scooter usage, by detailed demographics, April 2008
• Who rides at the moment?
• Who are the lapsed riders?
  • Figure 26: Motorcycle and scooter usage, lapsed riders, April 2008
• Who are the potential riders?
  • Figure 27: Motorcycle and scooter usage, potential riders, April 2008
• Who is set against riding?
  • Figure 28: Motorcycle and scooter usage, set against riding, April 2008
• What Consumers Look for in a Bike
• Key points
• Most popular features
  • Figure 34: What motorcyclists look for in a new bike, April 2008
• Practical considerations paramount
• Emotional aspects still important
  • Figure 35: What motorcyclists look for in a new bike, by gender, April 2008
  • Figure 36: What motorcyclists look for in a new bike, by age, April 2008
• Average buyer looks for 2.9 features
  • Figure 37: What motorcyclists look for in a new bike, by number of features cited, April 2008
• Which Factors are more Likely to Prompt Consumers to Buy a Bike?
• Key points
  • Figure 38: Positive and negative factors impacting on motorycles and scooters, april 2008
• Congestion and parking are a big plus
  • Figure 39: Factors which consumers viewed as having a positive impact in their perceptions of motorcycles and scooters, for 45-54-year-olds, April 2008
• Safety measures reassure potential bikers
• Established bikers provide positive word of mouth
  • Figure 40: Factors impacting on motorycles and scooters, by gender, April 2008
• How aware are Riders and Potential Riders of the New Motorcycle Test?
• Key point
• Overall levels of awareness are low
  • Figure 41: Knowledge of new motorcycle proficiency test, by detailed demographics, April 2008
• Although awareness is higher amongst men
• Appendix -- Motorcycle and Scooter Usage
  • Figure 49: Motorcycle and scooter usage, by detailed demographics, April 2008
• Appendix -- What Motorcyclists Look for in a New Bike
  • Figure 54: What motorcyclists look for in a new bike, by detailed demographics, April 2008
  • Figure 55: What motorcyclists look for in a new bike, by detailed demographics, April 2008
• Appendix -- Factors Impacting on Motorcycles and Scooters
  • Figure 56: Factors impacting positively on motorycles and scooters, by detailed demographics, April 2008
• Appendix -- Knowledge of New Motorcycle Proficiency Test
  • Figure 57: Knowledge of new motorcycle proficiency test, by detailed demographics, April 2008