Market reports – First half of 2013: KTM market report – KTM used equipment

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First half of 2013: KTM market report

Market reports - First half of 2013: KTM market report - KTM used equipment

KTM has just completed the first half of 2013 with a decline of -9.7% and has a total of 3,301 registrations. Austrian brand president Reinhold Zens delivers his impressions to Site and its readers. Balance sheet.

Site: To what do you attribute the drop in the motorcycle market in France in the first half of 2013 ?
Reinhold Zens (President KTM France): I think there are three reasons:

  1. The French have doubts about their policies and therefore their near future, which implies a drop in their spending and, as usual, in France, an investment of their liquidity. You have to look at the sums deposited on the livrets A in France over the past six months to realize this. The money is there but not injected into the economy.

  2. The weather did have an impact on customer morale. Cumulated with reason # 1, this could have postponed or canceled purchases.

  3. The market has evolved and is clearly divided into two: middle class customers who are currently suffering from the economic situation and better-off customers who continue to buy but are very critical and want the best and the new. In this context, the Japanese brands which were clearly oriented towards mass products and therefore middle class customers, are losing sales and overall the market is shrinking. The price is no longer sufficient, you need the right price linked to a passion motorcycle.
"The market is clearly turning towards European brands"

MNC: For you, what is the highlight of this first half of the year? ?
R. Z.: It is the redistribution of the weight of brands on the French market. The market was traditionally very oriented towards Japanese brands and it is clearly turning towards European brands which all offer real novelties and which are proactive in difficult times. Our 125 Duke is, this year, the best registration of 125 with box before the Yamaha and Honda. It is a rewarding motorcycle and is already evolving after only two years on the market (standard ABS on the 2013 model). We have also successfully introduced our 1190 Adventure model in a competitive segment: we are second in market share behind BMW with 11% of registrations, after only three months on the market. The 390 Duke arrives and will allow us to take further market share in the A2 segment.

MNC: Regarding your activity, what is your assessment of your first six months of 2013? ?
R. Z.: The first six months were tough, we can’t deny that. The Offroad market, which is important for our brand, is a niche that has suffered from the points discussed above: climate and economy. This market is tight and reacts to news and promotions. The second half of the year will see us return to our usual registration level with the introduction of our redesigned 2014 EXC range. Nevertheless, we are very satisfied with our road models which are a real success with the public, whether it is the 125 Duke ABS or the 1190 Adventure. We also have a big expectation on our 390 Duke with an already well-stocked customer order portfolio..

"What makes sales are new products"

MNC: In general, how does the second semester look? ?
R. Z.: The second half looks good for KTM. The program is full: new 2014 EXC range, launch of the 390 Duke and finally the arrival of the much anticipated 1290 Super Duke R. We are relatively confident. Even though the market is expected to end around -15%, KTM is expected to gain more market share.

MNC: What are your tools to face this difficult period ?
R. Z.: The brand and real novelties. KTM has a strong identity and is recognized by TT customers as well as road customers. What makes sales are new products. A strong presence with our customers and our network helps us communicate our brand values. KTM is a real brand of passion. Passion is an important driver of the motorcycle world.

Interview by Matthieu BRETILLE

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