Scooter News Market Reflections A quick look at the local scooter market at the end of April 2011. Where are all those US Dollar savings?
Allen Drysdale Those people looking at the Aussie dollar and wondering why we are not seeing an overall reduction in retail pricing might be disappointed. Most importers are facing price rises out of Asian countries over the next few months, so why is this?
Given the Aussie Dollar just keeps rising against US currency, retail prices here in Australia have pretty much kept running at a steady pace. From a recommended retail perspective we have not seen the movement one might expect. This is all due to the fluctuations of both the Yaun (Chinese Dollar) and the TWD (Taiwanese Dollar) against the US Dollar. Most Australian Importers deal in US currency with either Taiwanese or Chinese manufacturers, so the pressure keeps coming from both quarters as the US Dollar weakens.
USD V's YUAN
USD V's TWD
Adding to this pressure has been the increasing cost of resources, this being the base cost of materials that a manufacturer would use to build a scooter. Another would be the record rate of inflation in China which is currently running at around 5.4% at the end of March 2011. China reported an 11.7 % increase in food prices alone in April of 2011. This is placing additional pressure on wages from a manufacturing standpoint.
From a local market point of view, things remain steady, if not a little fragile. Market statistics would have us see a scooter market in rebound, though for 2011, this will be very much reliant on the cost of fuel and the ongoing pressure on interest rates through high inflation.
The Australian economy remains driven by a hot resource sector and the media speculation around interest rates is increasing. So we do seem to be seeing some form of slow down on the spending of disposable income. Add in the factors we already know about, the increasing cost of everyday living (power, food, fuel), and we have any number of influences applying the brakes.
April scooter retail figures (FCAI) indicate that the market has lost some of that bounce that had returned in the first quarter of 2011. Though, these numbers need to be factored against a lengthy Easter/Anzac public holiday and long periods of wet weather across some east coast locations. Also heavy discounting in some market segments has driven retail sales in April, this will have an additional impact on the overall health of the industry.
The positives for the scooter market are that consumers are still looking to save money. A scooter can be a tool that will perform this task, a proven and reliable one at that. Taking NSW as an example, the wait to get into a rider training course is still lengthy, so the demand to get onto two wheels remains strong.
In other positive news we see the US scooter market with a 50% increase in sales, increases in the cost of gas being the driving factor. Sales of just over 6000 units for the 1st quarter of 2011 versus just over 4000 units in the same period for 2010.
For Australia, 2011 may well be the rebound year if consumers look to save themselves from spiralling daily household costs. The choice of scooter models in the Australian scooter market remains strong, the major brands all have models which will answer the task of daily commuting.
Each state market remains different with licensing the major differentiation. You can still ride a scooter on a car licence in QLD, WA, SA and NT. In all other states you require a licence to ride a scooter, though the training in getting passed the course does help.
For a 50 cc scooter expect to pay around $2000 Ride Away (+ or -) in states where the licensing laws suit. This is where the market starts and you can go a little higher on the purchase price if you want to lift the overall quality and performance.
In states where you require a licence for any kind of riding, the general area of the market is plus or minus $3000 Ride Away. A figure that will get you a 125 - 150 cc scooter capable of the majority of ones commuting needs.
Good value in anyone's language, especially when factoring in fuel usage........
From our perspective make sure you visit your local scooter retailer and ask what they have on special, especially over winter. You'll be surprised by the value on offer and what your dollar can actually buy in today's climate. In our travels we see a great number of in-house specials and I'm always amazed with the depth of quality and performance you can get these days for the price.
Some dealers are getting the benefit right now of buying in bulk and taking advantage of any gains in the high Aussie Dollar. Never a better time to get on a scooter, we certainly think so here at Scootersales.com.au.
published 9/05/2011 |