Future profitability declines despite increasing sales – NMDA Attitude Survey

2nd November 2015 | 0 Comments
 

The NMDA Autumn 2015 Dealer Attitude Survey, published 2 November 2015, shows that the all dealer average when asked about the overall value of the franchise remained stable at 6.6 since the last survey in spring 2015. Harley Davidson, KTM and Kawasaki were recorded as the top 3 franchises, while the BMW, Honda and Piaggio Group were least valued.

“The NMDA are pleased to see that this year’s Autumn 2015 Dealer Attitude Survey received a response rate of 25 per cent (206 dealers). Honda had a 67 per cent response rate, whilst 14 per cent of participants were from BMW & Harley Davidson. Budget brands Lexmoto and Kymco only had 13 per cent and 8 per cent of respondents – meaning their responses may not be fully representative of the brand”, commented Stephen Latham, head of the National Motorcycle Dealers Association (NMDA).

The participants in the survey included 83 per cent independent dealers and 17 per cent privately owned groups. 64 per cent were single brand dealers whist the remainder (36 per cent) were multi-franchises.

The dealer/manufacturer relationship score average remained the same as in the last survey in spring 2015. The partnership dealers have with their manufacturer scored an all dealer average of 3.5. BMW dealers were more dissatisfied with the partnership they have with their manufacturer having reported a score of 2.2 since the last survey and fall to 12th position in the ratings chart. Harley Davidson increased their score by 0.2 to 4.5 at second position, whilst KTM moved up to third, having increased their score by 0.5 to 4.5.

Dealer profit remained static, while future profitability decreased slightly. When rating the profit return by representing their franchise, the dealer average remained at 3.1 since the last survey in spring 2015. Harley Davidson and KTM were recorded as the top two franchises. When asked about the future profitability of their business the all dealer average decreased from 3.4 to 3.3. Again, Harley Davidson and KTM were recorded as the top two franchises.

Latham continued, “It is concerning to see the decline in future profitability despite the overall increase in sales volumes this year.

“There has been a noticeable increase in the number of motorcycle enthusiasts entering motorcycle dealerships, and a significant number of leisure bikers who enjoy motorcycling; suggesting a return in consumer confidence and financial security which should have a positive impact on the sales of motorcycles going forward.”

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Category: Market Info, UK News

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