Motorcycle Market Brief 2012

An Expert's View about Motorcycles in Austria

Posted on: 18 Jul 2012

In 2010, there were 696,714 motorcycles registered in Austria. The Austrian motorcycle market is dominated by European and Japanese manufacturers.

Austria: Motorcycle Market Brief 2012 Marta Haustein June 2012 Summary Austria is a dynamic EU member country with an affluent population of 8.3 million, predominantly German speakers. Austria’s manageable size and stable business environment make it an attractive market for U.S. exporters, as well as an attractive test market for U.S. firms with an eye toward expansion into neighboring Germany. Austria’s historical and economic ties to the growth markets of Eastern and Southeastern Europe also make it a logical base for serving those markets. At present, approximately 330 U.S. firms have subsidiaries, affiliates, franchisees, and licensees in Austria, of which about 150 have regional responsibilities for Central European, Eastern European, or Balkan countries. U.S. products and services enjoy a good reputation in Austria. In 2010, there were 696,714 motorcycles registered in Austria. The Austrian motorcycle market is dominated by European and Japanese manufacturers: Yamaha, Piaggio, KTM, and BMW being perfect examples. Most motorcycles sold and registered are either at 50cc or between 50cc and 125cc; the demand for mopeds and scooters as commuter and city transportation is greater than that for leisure and sport bikes, segments which typically consist motorbikes greater than 125cc. Within the latter two segments, though, one American company (Harley-Davidson) has consistently performed well within Austria, ranking 7th in the over 125cc segment and 8th in the over 50cc segment in 2010 (domestic producer KTM and nearby German BMW ranked 1st and 2nd, respectively. Market Entry As motorcyclists demand high quality equipment, and Austria has only one domestic supplier (KTM), this market could offer good opportunities for US companies. In addition, an underexploited facet of the 125cc market segment is that of the recently passed (in 2009) “Code B 111” decision, which allows drivers with a Class-B license (standard issue for passenger vehicles) to drive 125cc motorbikes after 6 hours of practice. These hours can be completed at any driving school or at either of the two largest driving clubs in Austria. Once completed, no test is required to receive the “B 111” license addition. This new development could have a direct impact in boosting the currently- modest growth of the 125cc market. Current Market Trends The Austrian motorbike market is growing (1.3% in 2010). After an increase of motorcycle imports in the year of 2008 (36.9% - the highest increase since 1996), the imports of motorcycles in Austria fell during the financial crisis, with 20.8% less imports in 2009 and 10.8% less imports in 2010. The number of motorcycles produced locally was 57,160 in 2010, an 11.5% increase since 2009. export.gov The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE Source (http://www.statistik.at/) Main Competitors The production of motorcycles in Austria is dominated by KTM, the only motorcycle manufacturer in the country. KTM’s presence in the domestic market is strong, however it is outperformed by major imports such as Honda and BMW. In terms of Austrian-market performance, KTM ranks 6th in total market share, and 2nd behind BMW in the over 125cc segment. KTM is a worldwide exporter, with 96% of motorcycles produced in Austria being exported. Harley-Davidson and Indian are the only two US brands with a share of the Austrian market. Harley- Davidson, though, has the lion’s share of the US-motorcycle market in Austria, outselling Indian 872:1 in 2010 (Indian literally sold 1 motorcycle in Austria that year). Harley-Davidson also competes heavily in the over 125cc segment, and in 2010 ranked 7th in total sales within this segment. As to Indian, the company sold one motorcycle in Austria over the period January 2009 – March 2011 Raning Nam Tota Mopeds Oveder Scooters5cc 125ccment Overc Over5cc 125cc Total 47498 25875 4008 5670 7034 21623 11945 1 Piaggio 7037 3310 1587 2140 2140 3727 2 Yamaha 3228 896 393 379 589 2332 1560 3 Ride 3149 3002 0 147 147 147 4 Derbi 3133 2862 117 153 200 271 1 5 Honda 2646 6 433 831 1012 2640 1376 (9) KTM 1683 24 24 1683 1659 (19) Harley- 872 0 872 872 Davidson (63) Indian 1 0 1 1 Source (www.arge2rad.at) export.gov The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE The Austrian motorcycle market is dominated by European and Japanese manufacturers: Yamaha, Piaggio, KTM, and BMW being perfect examples. Most motorcycles sold and registered are either at 50cc or between 50cc and 125cc; the demand for mopeds and scooters as commuter and city transportation is greater than that for leisure and sport bikes, segments which typically consist motorbikes greater than 125cc. Within the latter two segments, though, one American company (Harley-Davidson) has consistently performed well within Austria, ranking 7th in the over 125cc segment and 8th in the over 50cc segment in 2010 (domestic producer KTM and nearby German BMW ranked 1st and 2nd, respectively). Current Demand As of the end of the first quarter of this year (2011), the Austrian motorbike market has seen a 1.1% increase in sales over 1Q 2010. The greatest percentage increase was in 125cc Scooters at 15.97% (an increase in 138 units), with the 125cc market segment increasing 14.69% as a whole. The 125cc market segment also saw the largest per unit increase as compared with the other segments, with 154 more units sold in 1Q2011 than in 1Q2010; in second was the between 50cc and 125cc segment at 135 more units sold than in the same quarter of the previous year. The sale of Mopeds has continued to decline, however, with 292 units less being sold in 1Q2011 than in 1Q2010; that is a 5.97% decline. Below is a graph depicting each market segments performance in 1Q2011 as compared to 1Q2010: Source (www.arge2rad.at) In 2010, there were 23,687 new registered motorcycles of which only 1,918 motorcycles were Austrian products. This indicates that the majority of new motorcycles registered in Austria are imported. The numbers of new motorbike registrations have gone up since last year 2010. Compared to the year 2009, 22.3% more new Harley Davidson motorcycles were registered in 2010. This led to the establishment of Harley Davidson GmbH’s new office in Vienna along with the newly introduced position as Country Manager Austria. export.gov The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE Source (www.wko.at) Barriers Austria is a highly developed open market with relatively liberal policies and sharp competition. The import climate is favorable towards U.S. products. American exporters, like domestic and European firms, are subject to packaging and other collection, recycling, and reprocessing laws. There are no significant trade barriers or limitations on U.S. motorcycles. The import duty rate on motorcycles 250cc and below is 8%, while for motorcycles above 250cc it is 6%. There is also an import VAT of 20% (Einfuhrumsetzsteuer) on all motorcycles imported into Austria. Trade Events PS Show 2011 – Auto, Motorcycle, Motorsport and Tuning, October 2011, Wels http://www.ps-show.at/ This show is a must for every person interested in motorcycles or motorsports. Over 38 brands advertize their latest developments and inventions to over 36,000 visitors. Auto & Bike 2012 – April 2012, Klagenfurt http://www.biztradeshows.com/trade-events/auto-bike.html This trade show is organized by Klagenfurt Fair Company and is an excellent opportunity to capture sales leads and to showcase to thousands of visitors. It is an excellent platform to generate new business fortunes or to simply enjoy the latest trends and innovations in the automotive sector. Resources Association of Austrian Vehicle Industry E-mail: kfz@wko.at, Web: http://www.wk.or.at/fahrzeuge/ export.gov The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE The Association consists of about 170 member companies with more than 30,000 employees. The association helps with exporting goods into the world-wide market (Austria’s export rate is greater than 90% in the Automotive sector). Arge 2Rad E-mail: office@arge2rad.at, Web: http://www.arge2rad.at/index.php Arge 2Rad is the umbrella organization for the motorcycle industry and motorcycle importers in Austria. Statistik Austria – Wirtschaftskammer Österreich (Austrian Chamber of Commerce) E-mail: info@statistik.gv.at, Web: http://www.statistik.at; http://portal.wko.at/wk/startseite.wk U.S. Commercial Service Contact Information Commercial Specialist (Ms) Marta Scheidl Haustein in Vienna, Austria Email: Marta.Haustein@trade.gov Phone: +43-1-31 339 2205 Fax: +43-1-310 69 17 Website: http://www.buyusa.gov/austria/ export.gov The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE
Posted: 18 July 2012