As I had previously stated without the need of fancy consultants, press releases, or Electric Scooter venture capitalists! The Motorcycle Industry continues on its path to Mayan Nirvana in the year 2012. However, there is a bright spot!
GAS PRICES are going up! up! up! Meaning scooter sales and scooter repairs will be up.
MRP is poised to take advantage of this trend and if everything goes according to plan we should see a scooter explosion not seen since 2007 and 2008 in America. Sadly the rest of the Motorcycle Industry will not likely grow as people will have less disposable income since much of that money will not be spent on a new Jet Ski rather it will go to the pocket of Hugo Chavez or a the Saudi Royal family. Regardless scooter sales will go up!
So how to prepare?
If you are a store: Stock up now on accessories. Every person that owns a scooter will come back to the shop. Yes, it's been in storage for four years so they will need a new cover, lock, carb clean, and exhaust!
That guy who needs quick transportation will be the first to come in and ask: DO YOU SELL USED SCOOTERS?
Used is the new New! so make sure to get some used inventory before it runs out. Look at the auctions.
Consumers? BUY EARLY. Do not wait until gas is $5 because in the middle of the summer that cherry Red Kymco Agility will be sold out and if its not you will pay full price.
Many dealers at the Piaggio dealer convention in Ft Lauderdale last week basically reported that they had lived off the scavenged inventory from dead dealers the last two years. Much like the Walking Dead on AMC these guy were straight up Walkers not hiding the fact that they did better in the downturn the last two years thanks to liquidated inventory with 2009 and 2010 models. That inventory will not last forever, so go now and buy a scooter! The older VINS are likely to run out and when there's a boom new dealers will come, that new investor will come, and there will be no bargains.
Motorcycle Industry Council predicts Mayan Apocalyptic finish for 2012
New motorcycle sales will continue to decline through 2012, according to research released this week by theMotorcycle Industry Council. The estimate comes from the MIC's new Business Advisory & Forecast, the first time that the industry association has issued sales projections.
The 2012 forecast, which the MIC compiled in conjunction with the Institute for Trend Research, contends that the industry will back off from the modest sales growth numbers reported for 2011.
The 12 leading brands included in the MIC's Retail Sales Report were up 0.3 percent in 2011, compared to 2010. Fuel-efficient models did especially well last year, with scooter sales up 11.8 percent and dual-sport bikes up 14.2 percent. However, growth in these two markets doesn't seem to be enough to offset continued declines in larger segments due to ongoing economic instability.
"While our market stayed essentially flat last year, unemployment numbers and stagnant incomes are making consumers more cautious about large purchases," said MIC president Tim Buche. "Even with low interest rates making this a great time to buy for many people, overall economic uncertainty is leading us to predict we'll have fewer sales in 2012."
Buche said the MIC forecast assumes no change in the amount of sales and marketing efforts made by manufacturers and distributors. As such, the association said the market can influence and increase sales through production increases, price changes, special promotions and captive financing programs.
The MIC Business Advisory & Forecast also projects that continued declines in ATV sales is being offset by a market shift to recreational off-highway vehicles (ROVs); however, the MIC does not track ROV sales.
Pre-owned market. Spending on maintenance and repairs has been rising since April 2010, according to the MIC. More consumers are opting to re-outfit their current motorcycles or opt to buy pre-owned vehicles.
Recent tire sales also reflect this trend, as well as data confirming that owners are putting more miles on their motorcycles. The MIC's recently released Motorcycle Tire Sales Report shows that replacement tire purchases, among eight leading brands, rose 9.6 percent in 2011. Off-road tire sales increased by 11.7 percent last year, even though sales of new off-highway motorcycles declined by more than 13 percent during the same time period.
"We're seeing strong indications that riders are continuing to maintain their current motorcycles or upgrading ones they bought used, and we've recorded an increasing number of miles being ridden on American roads over the past decade," Buche said.
The MIC forecast report is available only to association members and not to the retail community.
