[REPORT]
The PTW industry and the crisis
ACEM reports a 35% decline during the first quarter of 2009
Registrations for the European PTWs market have been dropping sharply since the last quarter of 2008 (-34%). The severity of the economic downturn is putting users’ purchase power under immense pressure with negative consequences not only for the manufacturers but also for the linked industry, which spans from spare parts suppliers to dealers' networks.
During the first quarter of 2009 the European PTW market declined by 35%. Over the same period the automobile market was down by 17.2%.
Facts and figures of the PTW sector
In 2007, more than 2.7 million PTWs were sold in Europe. Having benefited from 6 years of continuous increase of the market (+ 22 % between 2002 and 2007), the PTW fleet has been steadily growing, reaching about 33 million PTWs, mainly pushed by an increasing urban mobility demand.
The aggregated PTW sector's (manufacturing, plus upstream and downstream activities) turnover amounted to 34 billion Euros in 2006. Within this, manufacturers’ turnover reached 7 billion Euros in 2006 and showed a relatively higher increase than the entire manufacturing and automotive sectors, with + 12% between 2004 and 2006. Over the same period employment in the PTW sector rose constantly, contrary to many other industrial sectors, reaching over 150,000 jobs in 2007.
Eurostat recorded 870 powered two-wheeler companies as manufacturers in 2006, and their average yearly turnover of Euro 8 million suggests a significant proportion of SMEs. The downstream sector depending on the PTW industry is represented by a network of over 37,000 dealers and independent repair shops.
The Powered Two-Wheeler Industry in the economic crisis
These remarkable performances must be set against the current economic downturn. In 2008, the market suffered a reduction to 2.5 million PTWs (-7.4% over 2007). This drop mainly occurred during the last quarter of 2008, which showed a significant contraction (-34%) over the same period of 2007. The first quarter of 2009 has been more severely impacted by a further deterioration of registrations (-35%) over the same period of 2008, with multiple consequences on manufacturers, suppliers and distributors. Given the seasonal pattern of PTW sales – mostly concentrated in spring/summer - the full impact of the current economic crisis will only become measurable in the second semester of the year.
In the absence of supporting measures the current PTW production drop, ranging from -30% up to -40%, is likely to remain unchanged. Facing the crisis manufacturers had to adopt extreme countermeasures such as reduced working hours, production breaks, contract workers’ dismissals and permanent staff reduction (up to 25% in certain cases). Whilst it is in ACEM members’ interest to try and safeguard skills and employment in the sector (manufacturing, suppliers, dealers), it is obvious that in current conditions this is no simple task. In the current situation, ACEM has been calling for measures aimed at supporting the PTW sector. [read article]
Suppliers and distributors are confronted with even more serious financial difficulties as they suffer from the combined effects of the orders’ fall, over-stock and from the downgrading of their creditworthiness. About 10% of the PTW suppliers present a bankruptcy risk, while others have already ceased their activity.
Countermeasures to fight the crisis
It is of paramount importance to define proposals that are achievable by the PTW industry, but more importantly that are likely to be accepted by consumers. The cost increase for the consumer coming from some of the policy options being considered by the European Commission would represent an average of +15%, with peaks in the range of +30%. This is clearly incompatible even in a bull market. The combination of the entry into force of a delayed Framework Regulation in conjunction with the 2013 application of Directive 2006/126/EC on driving licences, which will determine a reshaping of the market towards new categories of smaller cylinder capacity, lower cost, reduced margins for manufacturers, might go well beyond the expectations of the policy makers.
[INDEX]
ACEM MEETS EC VICE PRESIDENT GÜNTER VERHEUGEN
SCRAPPING SCHEME ADOPTED IN SPAIN
INTERVIEW WITH HENDRIK VON KUENHEIM
COMMUNICATION ON THE FUTURE OF TRANSPORT
ETSC UNVEILS 2008 ROAD SAFETY PERFORMANCES
Ancma reports good news from the italian PTW market in June following the adoption of scrapping schemes
Scooters boom (+31.2%) while motorcycles (-16.3%) and mopeds (-13.1%) decline slows down.
Sales of PTWS in Italy are back in positive territory, with a +8%, equalling to 74,500 units sold in June. The extraordinary performance of the scooter segment boosted registrations (58,665 units, +15.5%) reaching a 76% market share. A total of 44,658 scooters were sold (+31.2%), while motorcycles still lag behind at 14,007 units (-16.3%) but not as bad as expected.
Finally, mopeds sales reached 15,835 sold units, with -13.1%, still negative but better than the previous months.
Overall, the balance for the first half of 2009 remains negative, with 289,602 vehicles
(-6.9% compared to last year), but the positive trend of scooters over 50cc bodes well for the year end. In total, during the first 6 months 240,088 registrations (-2.4%) were recorded, but with +8.4% for scooters, which amounts to 69,244 units, more than 12,000 compared to the same period of the previous year. Total motorcycle sales are down -21% at 70,844, or 18,000 registered units less than during the first six months of 2008.
Mopeds sales stop at 49,514 (-23.9%) deliveries, over 15,000 units less.
The positeve effect of the incentives devised by the Italian Government for PTWs up to 60kW is evident, and thanks to the manufacturers’ further supporting actions, this scrapping scheme is benefiting mainly utility vehicles such as scooters and small-medium engine capacities. According to ANCMA’s analysis demand for PTWs is not decreasing in the country, albeit declining economic conditions and limitations to credit access are slowing down sales.
The Ministry of Environment has announced it will renew incentives targeted to mopeds, hybrid and electric PTWs, a measure pending approval from the Court of Auditors.
The soaring sales of 125cc scooter are striking, with 55,853 units (+29.7%), followed by the 150-200cc: 38,682, (+25.7%). Also vehicles from 300 to 500cc obtain good results: 54,693 (+15%). The 250cc segment however remained at 18,713 units (-41%) (many models are now offered with an engine capacity of 300cc instead of 250cc), and maxiscooters with engines over 500cc, sold only 1303 units (-67.8%).
A strong decrease has occurred in the motorcycles segment of 600cc (-29.9%) and up to 750cc (-22.2%). From the point of view of styles, the sports segments (-35.6%) and road enduro (-27.8%) were the most affected. The situation is less critical the for naked bikes (-11.3%), customs (-15.9%) and supermotards (-17.7%).