Sector Study: Motorcycle importers & representatives
Significant rise of 20.4% in 2016, mostly due to special vehicle registrations
The domestic sector of motorcycle trading is the subject of investigation in a recent study conducted by Infobank Hellastat S.A. According to Alexis Nikolaidis, Economic Research & Sectorial Studies Senior Analyst, in 2016, motorcycle registrations increased significantly by 20.4%, to 41,520 units (versus a rise of 9.3% in 2014, and 6.8% in 2015), in spite of the increased tax burden imposed on consumers.
However, the real increase was lower, due to the opportunity provided by the Ministry to dealerships, to register a specific number of mopeds under Euro3 standards by the end of the year, in order to prevent the development of any unsold inventories, as a result of the fact that the new Euro4 standards have been in effect since the beginning of 2017. This is reflected in the sharp rise in registrations in last December, which did not automatically translate, however, to actual sales as well.
Any Euro3 mopeds that were specially registered, in terms of time, in 2016, will be made gradually available for sale this year. Therefore, new registrations will initially show a large decrease, since any inventories of models under older standards should be absorbed first. This fact is already evident, since a drop of 50% has been recorded during the first two-month period.
In 2016, nearly 8 out of 10 new motorcycles that were registered had a low engine capacity. Scooters accounted for 54% of the market, with 22,320 registrations (+14.7%, compared to 2015). Subsequently, about 12,000 mopeds (+40%) were registered, accounting for 30%. Motorcycles reached 3,912 units (+13.5%), earning a share of 9%, while 2,978 ATV were also registered, which was the category with the highest increase (43.4%), improving thus its stake at 7%.
Yamaha ranked first with 7,752 motorcycles, accounting for 18.7 of the market. It was followed by SYM, with 6,559 registrations (15.8%), Honda with 6,613 (15.7%), Piaggio with 4,586 (11%), and KYMCO with 4,420 registrations (10.6%).
According to Mr. Nicolas Gouzelos, CEO of Infobank Hellastat, “The sector of motorcycles with low engine capacity will further benefit, in case the current period of economic uncertainty continues in the long run, and this has already been evident in the market. Therefore, the representatives (dealers) and traders of models from manufacturers with a long tradition in scooters and mopeds will be the ones that will benefit most.”
In the study conducted by IBHS, an analysis takes place of the financial statements of 23 companies. The key conclusions drawn are summarized as follows:
• In 2015, Turnover rose by 13%, to €130m
• EBITDA increased by 56.5%, to €7.32m, while EBT amounted to €4.72m, versus only €1.92m in 2014
• The EBITDA margin was formed at 2.6%, versus 1.7% in 2014
• Capital leverage deteriorated slightly to 1.4 over 1
• Inventories were held for a period of 3 months