Motorcycles and Scooters - UK - July 2008

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