With the rising costs of petrol during March 2022, it would have been expected that possibly there would be rise in motorbike sales as motorists sought cheaper transport options and interest rates on motorcycle loans was low. But according to the sales for motorcycles in the first quarter of this year, the numbers are down compared with 2021.
The Federal Chamber of Automotive Industries (FCAI) released the figures for the January through March 2022 in early April and they reveal an overall drop of 10.7% compared with the same period in 2021. But these figures need to be taken in the context of the market and economic conditions,
We report on the motorbike sales figures for first quarter 2022 and what buyers might look for in considering their purchase and their motorcycle loans.
Sales Data: January-March 2022
As reported by FCAI, the total motorcycle sales figures include motorbikes, off-highway vehicles (OHVs) and scooters. Of the 24,338 units sold, off-road motorbikes had a big share of the action – 39.6% or 9,644 machines sold. But this is a drop of 17.2% on the 2021 data.
Road bikes captured 39.9% of sales with 9,723 machines sold. An uptick of 12% on 2021. OHVs dropped with only 13.5% of sales. While scooters make up only a small 7% of the market, but with a rise of 15% on 2021 figures.
Mr Weber, the Chief Executive FCAI, in a statement announcing the figures said that these machines were an important part of life for many Australians for both road transport and recreation. He said that with fuel prices rising and with increasing road congestion, it was time for state and territory governments to implement a consistent licence regulation regime nationally. He said this would enable more drivers to easily move to motorbikes.
Data in Context
As with all data, it needs to take in context. In the case of motorcycle sales figures that includes a number of considerations which we will cover off. Unfortunately the FCAI does not release data on best-selling individual brands, makes and models. That would be a plus for buyers looking to see what others had already selected.
The FCAI figures also only include the sales results contributed by their members. It is a member-based organisation and not all motorbike brands are members. Several motorbike distributors in Australia are not FCAI members, so figures don’t include sales for Benelli, Royal Enfield, MV Agusta, Kymco, CFMOTO and Sherco.
The figures also cover only brand new machines not second hand.
Like so many manufacturing sectors, the motorbike industry is also dealing with challenging circumstances. This is around supply issues compared with demand. The computer chip shortage is continuing to have an effect on manufacturing as is the comeback after factories were shut down due to COVID. This particularly impacted European-based facilities.
Costs and challenges of shipping goods to Australia have also been on the rise which has impacted supply. So sales figures may represent what stock was available to deliver in the relevant quarter rather than how many riders are keen to purchase new machines.
The price of new motorbikes has increased as a result of these global and local challenges. This could be pushing buyers to the used market so purchases are not reflected in these new bike sales figures.
Current Buying Motivators
While figures for the first quarter of 2022 are down on the same period in 2021, there are possible reasons for this shift. Many people were cashed up and ready to roll in 2021. They had been in lock down for extended periods and had money to spend and wanted to get out! Motorcycles represent the ultimate getaway machine and no doubt many took the opportunity to purchase their first or next machine.
So that was then, 2021, what are the driving reasons to buy a new motorbike in 2022 now? We provide a few ideas for those considering moving from 4 to 2 wheels or intending to buy with a motorbike loan.
- Fuel prices surged in early 2022 as a result of primarily global issues. While the Government responded by reducing the excise to 22c for 6 months, many car owners may be frustrated with the continuing see-saw of petrol prices. Seeking a more economical form of commuting could be on the cards.
- Interest rates have been at record lows since November 2020 but the RBA is tipped to move in June 2022 and increase the cash rate. This will mean that motorbike loan interest rates will rise as lenders respond. Rates could rise several times over several months. So getting in while rates are low could represent a savings on loan repayments.
- Upcoming tax returns could find their way into many taxpayers’ back accounts after they submit returns. This is a result of the extension of the Low and Middle Income Tax Offset in the Federal Budget 2022/23. This includes an increase of $420 which makes maximum possible $1500. Those in line for that rebate could put that towards their new motorbike.
- If buying with a Secured Bike Loan, additional payments are allowed. So buyers could purchase now with a cheap bike loan while rates are still low and use any tax return monies to make extra loan payments down the track.
Clearly availability will be an important factor on bike sales figures moving forward. We await the next quarterly figures in July to see how all this plays out.
For a quote on a motorbike loan contact Jade Bike Loans at 1300 000 003
DISCLAIMER: IN REGARD TO ANY ERRORS OR MISREPRESENTATIONS IN THIS MATERIAL, NO LIABILITY IS ACCEPTED. THE DETAILS, CONTENT AND DATA ARE PRESENTED PURELY FOR GENERAL INFORMATIONAL PURPOSES FOR MOTORBIKE BUYERS AND THOSE SEEKING MOTORCYCLE LOANS. THIS IS NOT INTENDED AS THE SOLE SOURCE OF INFORMATION FOR FINANCIAL DECISIONS. IF SPECIFIC ADVICE IS REQUIRED AROUND FINANCIAL DECISIONS, READERS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
