Motorcycle Sales Statistics

Found this interesting tidbit on webbikeworld ...

http://www.webbikeworld.com/motorcyc...statistics.htm

Harley is in deep trouble (no secret there), with several dealers closing in the USA/Canada.

But what I found most interesting was the Japanese stats. Aside from the dismal year-to-year sales figures over the past 15 years, I noticed that the total Japanese production (domestic & export) was still less than half of Jialing's annual capacity (2 million, although Jialing doesn't say how many it actually builds/sells).

I'm planning on heading to Chongqing for the 2010 show - should be interesting to see how the "big boys" from Japan and elsewhere are looking at China, given these dismal statistics.

The shop I worked in for 5 years went out of business last week while I was visiting the U.S. This was a 20+ year, multi line dealership, with motorcycles, ATV's, snowmobiles, and watercraft. It's not the lack of sales, it's mostly the banks that have ruined the industry. I talked to a wide variety of industry people during my trip this summer and was told there were about 8000 MC shops in the U.S. five years ago. Many felt there could be less than 5000 by the end of 2010. Not a lot of positive vibes coming from the people I talked to.

Regardless of what companies like Jialing quote for capacity, I'm confident the statistics on Chinese production are inflated and do not reflect the reality of what is actually manufactured. Slapping out the garbage they make at razor thin margins can hardly be called a business. I'm sure the "big boys" of the world would love to have the Chinese market fix their declining sales, but I think we know how that works out for most multi nationals.

Two things that should be pointed out with the declining numbers in Japanese manufacturing and domestic sales. One, they have moved many region specific models to overseas facilities for production. Two, their population is declining.

I'm planning on hitting Chongqing for the show as well, shall we meet for a beer or three? :goodtime:

Cheers!
ChinaV

ChinaV - multiple beverages is definitely a great idea! Love to hear about your recent USA experience.

I think a few bikers from Beijing may travel down from what I've heard (hey Andy - you interested?).

Re banks and biking ... I looked over Harley's financial statements recently and noticed that its financing arm is showing strong growth - as are its accessories sales. Seems like Harley has taken a page out of General Motors' (GMAC) and Ford's (FMC Credit) playbook.

But its bike sales are way, way down. I've also heard that Harleys are being deeply discounted and 2nd hand bikes are really taking a hit in North America. One analyst's report attributes it to not only the financial crisis, but also the fact that the prime sales demographic is simply getting older ... e.g., like me!

:wheelchair:

Interestingly, sales figures of protective gear are way up. Obviously, the sense of youthful invincibility is being pushed aside by the reality of frail bones and slower reactions and hospital costs. We baby boomers are just getting older - no stopping it.

Rule # 1 - know thy customer!

So I suppose that Highland is the best effort at Global manufacturing. They are what number three in production capability? Luoyang Northern Enterprises Group Co., Ltd.
I do not fully see that, I cannot see what that group consists of only that is collectively as a group has an estimated annualized production for 2010 of 1,793,304 units. Which is a staggeringly large number showing up as number three behind the Grand River Group (Hajuoe) and Loncin Co one and two respectively.
Part of that Highland Group is in the USA and is actually manufacturing as Highland USA. Theoretically they have an ability to gain a market share here? But considering what happen to Buell its not probable, in general.
Overall the USA sales are set back ten years, so its all about attrition and decreased production and related labor. The market profile does not change that fast, same people buying the same things just less of them able to do it.
Its interesting those number in that report selling 47 scooters in a month would be 1% of total national sales? Then selling 564 in a year of any scooter would make that brand a 1% market share of Total US scooter sales. You would have to have a diverse sales network spread out across the country. The same principal holds true for any bike, there are lots of models and lots of choices. So for example a 200cc very common dual sport would need to sell on the same principals as that of a 250cc scooter.
Dealers that follow the annual trade shows? Not just being at the local trade shows, they have to be there in forces and also have local dealer outlets they are feeding. The industry is ego laden, short sighted…limited in scope, trouble marketing and selling what they personally do not like? That defies the process and ignores what is paramount and that’s economy of scale.
Less dealers and bigger dealerships…less distribution systems shared common distribution systems. That’s happening in most markets that being consolidations. Low sales volumes are all about economy of scale. But it requires creativity and getting people on two wheels for less, I think there is a dormant market that just is not considering it, that’s all about advertising. It about being at the annual show and then about being local in force and also running local spots that touts the affordability.
Then linking it in to finance and also insurance with packages that make it easy to get on the road. Some of the models could be sold as completes service included. Set monthly payments with scheduled service intervals.
The base is base and with as many and as much as possible up the product offerings. But it all would need to come into one very large central distribution system that dispersed those into all major markets. They have to do that cooperatively. Separated manufactured brands, following a common channel.
If Highland dealer also sold Dayang scooters and the sold 1200 in one year they would have 2% of the total scooter sales for that year.
Groups should sell in alignment and with alignments with other manufactures. A collective distributor and dealer network could easily achieve double digit market shares nationally within certain product segments. With a larger systems they could select and distribute to that market selectively, choosing what to place and where.
A simple example: Where are the SYM SYMBA being sold? Then a comparable model imported and sold into that market….as better for less.
http://i784.photobucket.com/albums/y...YM-Symba-1.jpg
How about Chongqing Guangyu Motorcycles version?
http://i784.photobucket.com/albums/y...1963/KAYAK.jpg
They come in at number 50 in the top Chinese 50 producers. They also offer a very nice 250 street bike that also could be sitting in that same showroom.
http://i784.photobucket.com/albums/y...1963/250-1.jpg
As well as a respectable 200cc dual sport.
http://i784.photobucket.com/albums/y.../dualsport.jpg
It is all a matter of channeling the major options in production into one giant showroom that is advertised in major markets. It about collective cooperatives and economy of scale. Keying in on certain major markets strategically.
The USA market is a sliver compared to the Chinese production capacity. They can and should only compete in a common dealer setting, head to head on initial perceptions of quality style and value.

Quote:

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Originally Posted by Lao Jia Hou

..........I think a few bikers from Beijing may travel down from what I've heard (hey Andy - you interested?).

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Richard, I am most likely not going.
Exhibitions don't belong to my favorite events and Chongqing not to my favorite cities :icon10: