Could COVID-19 Be Responsible For A Boom In Motorcycle Sales?
Motorcycle industry leaders optimistic about Covid-Inspired sales surge.
If you’re looking for a bright spot during these tumultuous times a new report from Bloomberg shows that after a dip in sales early on, the overall health of the motorcycle industry is actually improving during the pandemic, with some manufacturers showing an uptick from averaged expected gains over the first four months of 2020, especially during the month of April.
Of course it’s true April is traditionally a strong month for motorcycle sales, but the report asserts an extra spike in sales is likely due to the fact that consumers have been cooped up since early March and are longing for a way to escape the confines of home while safely maintaining distance from others.
In fact, Erik Pritchard, head of the Motorcycle Industry Council, says there’s good reason for this optimism, especially when you consider that in the first four months of 2020 the motorcycles industry in the U.S. has seen its best performance since 2016.
In the same report, Jason Chinnock, CEO of Ducati North America, shares this confidence, reporting April motorcycle sales at its flagship store in New York City were up 24% over last year. In addition, dealerships in other parts of the country such as Southern California and the Bay Area as well as some regions in Florida have seen similar gains, while other dealers like Kentucky Powersports tripled its sales for April, and Minnesota-based East Central Sports has reported it’s selling more dirt bikes than ever.
It’s simple, according to Chinnock. “If you’re looking for that escape, that release, that joy, then motorcycling is where you’re going to go.”
Who can relate?
So yes, there is reason to believe that at least for the most on-trend manufacturers (sorry Harley) sales will continue to surge, despite the ongoing coronavirus pandemic, and perhaps even because of it.
Earlier this month Stefan Pierer, CEO of the KTM group, which includes Husqvarna and GasGas, told France’s Le Peaire des Motards that his group continues to be in good shape: “Fortunately for us, the powered two-wheeler industry is thriving to some extent after the Covid. In all the countries that have reopened since containment, there is an increasing demand for our products.”
Having responded to the implications of the virus early and aggressively, the ADV- and dirt bike-heavy group, which was surging pre-pandemic, feels ready to charge off the line as global economies continue to restart. In fact, Pierer says the KTM groups didn’t lay off any workers during the shutdowns and has since added 40 new employees.
He says another interesting “fallout” from the crisis is a newly increased demand for dirt and adventure models in the U.S., explaining that for an approachable sum of money you can escape coronavirus without worrying about social distancing. “You can leave the risks linked to urban density and visit the countryside, always with the best protection, wearing your helmet. This is the main reason why we are facing a huge demand for our off-road models in the USA,” he adds.
KTM does however say it “lost” around 30,000 units while its factories were shuttered, and only expects to “recover” half that number with ramped up production efforts. Other manufacturers have most definitely experienced similar reductions in stock, reminding us that while motorcycles will be in greater demand, they may at least temporarily be in short supply.
Royal Enfield’s CEO, Vinod Dasari, has also stated optimism there will be a global surge in demand for motorcycles. And he says this is only partly due to people wanting to avoid the confines of cars or public transport as they continue to social distance themselves. The second reason for his confidence is a swell of enthusiasm he’s seen building as people in lockdown live vicariously through the tales of two-wheeled digital nomads like Royal Enfield Himalayan rider, Noraly Schoenmaker, a 23-year-old from the Netherlands who sold all of her possessions to ride around the world.
As he recently told the Economic Times of India, “There is pent up demand. We have been engaging quite a bit with our customers digitally and obviously because of the lockdown, the digital engagement scores are through the roof but the level of engagement is simply superb.”
Of course this potential growth in new riders and bike sales will benefit every consumer down the line as strengthened cash flows are sure to support research and development for new or improved models, as well as infuse the apparel and aftermarket industry with lifeblood. As MPN reported recently, there has been a surge in aftermarket parts sales, breaking all-time records during the shutdown.
And I guess for that, we have Covid to thank.
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I have 2 friends that each own a KTM dealership in North Texas. Both of them sold over 90 bikes in May. Covid 19 has Definitely increased MC sales as well as RV, Boat and even 2nd homes. I know I’ve purchased a new 790 and an RV. Great article and Spot on!
Noraly is not from denmark… She is dutch!
Hey Frank. You are absolutely right and I should have remembered that since I wrote her original piece. Thank you for alerting us. We’ve made the appropriate edit.
It takes a global pandemic to make peeps realise what important – that it’s “time to ride” and to stop procrastinating, and to live life like there may be less assurance in “oh one day” delays. so “that” Bike moves to the buy-it-now position.
I road bikes for years took a break now I’m looking to get back on one. I haven’t been confined like some people to the house as my job remained open during the outbreak but I feel it changed my perspective on riding as a whole. Motorcycles obviously have there risks less protection etc but this Covid 19 made me feel what’s worst in life going out riding or waiting for this virus to get me next and put me in a hospital? That is my motor behind why I’m looking to ride again and feel free.
[…] of motorcycle sales across the US showed that their sales were up more than 20% in year-over-year comparisons from 2019, and they remained hopeful that those sales would continue throughout […]
[…] of motorcycle sales across the US showed that their sales were up more than 20% in year-over-year comparisons from 2019, and they remained hopeful that those sales would continue throughout […]
[…] of motorcycle sales across the US showed that their sales were up more than 20% in year-over-year comparisons from 2019, and they remained hopeful that those sales would continue throughout […]
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