Europe Two Wheeler Market Outlook 2019-2035: Growth Opportunities | COVID-19 Impact Analysis

Europe Two Wheeler Market Overview

Europe two wheeler market has witnessed a steady growth in the last couple of yeras.Since 1992 safety of motorcycles , scooters , mopeds and tricycles for use on European Union roads has been regulated .In 2013 the European Commission its new regulation published that it was mandatory as of 31st December,2015 that those motorcycles which fall in the scope of existing legislation require “ Type Approval” that is the whole motorcycle along with its individual parts will be subject to a procedure known as “ Type Approval”. It is summarized as an overview of the changes resulting due to adoption of this regulation.

2019 Market Trend (Market Drivers and Restraints, Consumer Trends)

In 2019 the two wheeler market in Europe started at a very positive note. Though its positive still but its showing a downward trend. The sales performance was impressive in Q1wth sales accelerating by 21.60%and 372.175 units but in Q2 , the sales speed decreased .It is noticed that the year ended with +6.9% May with +1.1% June was worse with +0.7% leading to first half registrations at 947.597 (+9.6%).The October sales has been 120.408 up a little with a year to date figures at 1520,000 units (+7.3%).If we take a look at a single segment .YTD motorbike sales have been 568.126(+7.4%)the scooter /tricycles over 50 cc has been 358.748(+6.0%) and the 50 cc scooters 225.936(+11.9%).
The electric segment is booming sales of top 10 countries show the leadership of France. With 273.393 up by an outstanding +16.80%.Italy stands second place with 240.123 sales (+5.50%), Next is Germany with 183.701(+5.80%) Spain with 174.207(+10.80%), Turkey with 134.528(-7.50%) Great Britain 96.414(+2.10%), Netherlands 68.502(+5.10%)Belgium 47.850(+13.70%) Switzerland with 40.503(-3.0%) ahead of Austria with 39.648 (7.9%)
Two wheeler market had been moderately negative in 1.59 million sales (-1.30%) showing reduced rule of this area in comparison to the global industry. Bajaj Auto was struggling in 2019 as the domestic market had declined .The global sales in the first 9 months had been 2.8 million down 2.7%. There is a decline in sales in Latin America while in LIS markets where the brand entered last year sales  has been very good.

Market Evolution , 2012-2018

European Market is experiencing an increasing demand for high powered electric motorcycles.In the European Unon 28 countries in 2012,Electric Motorcycles sales were only 9.614 and the top 14 brands held 50% of the market.Other 32 brands who sold at least 1 model in 2012 were 185. Oxygen turned out to be the market leader with sales -495.On the introduction of the new European Union rules along with growth and Investment in the sector.There was a transformation in the European Electric Scooter and Motorcycles in 2018.There was an increase of 100.80% from the previous years.Total sales were 43.463 ,3.78% of the total entire scooter and motorcycle industry exclusive of ATV. There was a concentration on the top 3 brands which held 50% of the market, wheras 75%of the market was concentrated on the top 10 brands. Number of brands with one sales in 2018 were 235(+50 versus the 2012).European Electric Scooter and Motorcycles market in 2019 this market grew by 64% in the frst 11 months despite the +100% report in the previous year although the number of manufacturers grew up to 265 yet the market was held by one European Brand.
Market Figures in 2019

On the monthly basis in Europe the motorcycles data team aggregates the new two wheeler sales of all kinds of bikes registration which helps in providing real figures in market research.In Europe in the year 2019the two wheeler electric market achieved 44.738 units .It had grown considerably as compared to 27.240 units sold in the previous year.The top three markets manily France -27%, Spain 21.10% and Netherlands 12.40%represent64% of the total Europe. NIU the Chinese brand is the top seller brand with 26.70% of the market shares the rest of the brands like scutum as Koll, super soco , Govecs and BMW follows. By 2035 the European Electric scooters and motorcycles market will attain a size of $892.40million registering a CAGR of 26.20% during the period forecasted.

Increased usage of electric scooters for sharing services , formulation of strict emission laws are the major factors during the growth of the market.The European market for electric scooters and motorcycles is due to concerns over emission of greenhouse gases and initiatives taken by the government .The increased environmental deterioration is a cause of concern over the continent.Hence , this has become very important. Italian government is providing subsidy in the purchase of electric scooters till 2019. There is a backing of $11.34 million by the government.This step of the government has helped in the acceleration of purchase of electric vehicles thus boosting the market.

The motorcycle market can be categorized into 48 V,60V, 72V,100V .In 201860V battery scooters and motorcycles dominated the market with more than 40%volume share.There is an increasing demand for high speed vehicles, durable body and improved aesthetics. Two type sof battery types are prevalent the lithium –ion and li-ion and scaled led acid scooters and motorcycles with li ion batteries had a higher scale volume in the market.This is due to demand of high power and long range two wheelers along with declining cost of these batteries due to demand for high power electric motorcycles in 2018 .There was a 100% increase in sales volume as compared to 2017. There has been a huge publicity for launching high powered electric motorcycles by original equipment manufacturers(OEM’S)of gasoline based vehicles. Hence, the major trend in the market is for electric motorcycles with high power engines.

Mergers and Acquisitions

100% ownership of France based Peugeot motorcycles was announced by Mahindra two wheelers Europe. Mahindra two wheelers had acquired 51 percent of equity stake in PTMC from PSA group in 2013.Peugeot was infused with 15 million pounds or Rs 110 crores by Mahindra two wheelers a subsidiary of Mahindra and Mahindra limited. Mahindra and Mahindra two Wheeler Europe and PMTC team have worked together on reorganizing and building the performance plan of 2020 which was unveiled in July 2018. The foundation to strengthen company’s operations in core markets that is G7 (Europe) and expansion in  selected Asian markets.
The acquisition would lead to driving future growth in Core European Market and expanding new geographies which would include the selected Asian countries. Due to the positive momentum the company decided to introduce seven new products between 2019-2021.Kisbee has become the largest selling 50cc vehicle in Europe developing  strong base in Europe and China and owing to a positive response to the new launch of products. The Peugeot brand will continue to be used in the future under a license agreement between PMTC and Peugeot.The team will help to assist with the development of PTMC products.

Sales Distribution 

• Ducati Motor Holding will probably end the 2019 with the new all time sales record taking marginal benefit from the growth of the domestic European market, while improving in South America after years of difficulties and in China. Indeed, in the first nine months of the year global sales were 46.010, up a little 1.2%.
• Sales for the Top 10 countries confirm the France to be the leader at 273.393, up an outstanding +16.8%.
• In second place Italy with 240.123 sales (+5.5%) followed by Germany with 183.701 (+5.8%), Spain with 174.207 (+10.8%), Turkey with 134.528 (-7.5%), Great Britain with 96.414 (+2.1%), the Netherlands with 68.502 (+5.1%) and Belgium with 47.850 (+13.7%).
• Behind, Switzerland with 40.503 sales(-3.0%) ahead of Austria with 39.648 units (+7.9%).
• The European two wheeler market is booming with sales as of year 2019.The market is progressing slowly by keeping a positive outlook.
• The Q1 performance was impressive with sales accelerated by 21.6% and 372.175 units, while during the Q2 sales’ speed were down.
• By taking a closer look, we noticed that April ended up with +6.9%, May with +1.1% and June, even worse, with +0.7%, leading to first half registrations at 947.597 (+9.6%).
• In October sales have been 120.408, up a little 3.6% with 2019 figures at 1.520.000 units (+7.3%). Looking at single segments, the motorbike’s YTD sales have been 568.126 (+7.4%), the scooter/tricycles over 
• 50 cc have been 358.748 (+6.0%) and the 50 cc scooters 225.936 (+11.9%).Research after the analysis shows that the Electric segment is booming in Europe.
• The second market was Italy, with 247.940 sales (+4.3%) followed by Germany with 184.501 (+4.%) Spain with 182.800 (+12.3%) and Turkey with 159.337 (+1.0%).
• In sixth place the Great Britain with 105.816 (+0.3%) ahead of the Netherlands with 72.883, down 27.0%, the worse performance for the Top 20 markets, Belgium with 46.979 (+12.3%), Switzerland with 44.085 (-7.3%) and in 10th place Austria with 38.142 units (-6.4%). 
• In the 2018 the continental two-wheeler market had been moderately negative with 1.59 million sales (-1.3%).
• Indeed, the European market becomes marginal within the Global Motorcycles scenario, having lost steam, while all the others regions – except for North America – grew up. As a result, Europe (37 countries including Russia, Ukraine and Turkey) actually covers only the 2.4% of the motorcycles global market.
• Total continental sales showed a negative curve – from 2012’s 1.89 million to 1.59 million in 2018 ,when sales fell down for the third year in a row.

Looking at 2018 France confirmed as the largest market, despite losing 6.4% at 266.656 units.
Total sales were 43.463, counting the 3.8% of the total scooter and motorcycles industry (ATV not included), with an increase of 100.8% from the previous year. The 50% of the market was concentrated in the top 3 brands (Niu, Gogoro and Govecs) while the 75% of the market was concentrated in the top 10 brands. The number of brands with at least 1 sales in the 2018 were 235 (+50 versus the 2012).

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• Facilitate decision-making based on strong historic and forecast data for Europe Two Wheeler Market
• Develop strategies based on the latest regulatory framework
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