KTM, Husqvarna and GASGAS owner PIERER Mobility AG has reported encouraging results for the first half year of 2020, especially in the context of the Covid lockdown.
Sales of motorcycles and e-bikes were 124,682 units (compared to 135,711 in the first six months of 2019) and the company is reporting early completion of its 100% takeover of Girona, Spain based GASGAS, an increase in production capacity at its Austria headquarters and staff growth with 170 employees added as it experiences a "boom in global two-wheeler demand".
Over 70,171 KTM, Husqvarna and GASGAS motorcycles were sold, with 34,351 Husqvarna and R Raymon branded e-bikes sold. "This corresponds to an increase of +1.3% compared to the previous year. In addition, our Indian partner Bajaj sold 20,160 motorcycles (previous year: 32,539) under the KTM and Husqvarna brands in its markets hard hit by Corona in the first six months."
Due to the Corona-related two-month interruption of production, PIERER Mobility AG says it expects sales of
€ 600m (first half 2019: € 754.9m), but still made money in the first six months of 2020 despite the decline in sales revenue (EBIT was € 1.7m, compared to € 46.6m in the first half of 2019).
"After the two-month lockdown, the two-wheeler trade experienced a boom due to an apparent change in mobility behaviour - this was reflected in the double-digit growth rates in registrations in both the motorcycle and e-bicycle sectors.
"The motorcycle market developed surprisingly strongly, particularly in North America (+20%) and Australia (+39%). Globally, our motorcycle registrations rose by around +4 percent in the first half of the year, despite the Corona lockdown - with the KTM and Husqvarna brands able to achieve high market share gains.
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| PIERER Mobility AG Chairman Stefan Pierer has evolved a masterful 21st century recreation and urban mobility brand strategy. |
"In order to be able to cover the increasing demand for two-wheelers and the necessary increase in production capacity, 170 additional employees have been hired for the Austrian facilities since the beginning of June 2020. Our worldwide headcount is now more than 4,400 employees."
The PIERER Mobility Group has now acquired 100% of the shares in global trials market leader GASGAS Motorcycles GmbH, ahead of time, positioning GASGAS as the third Group brand in the off-road motorcycle sector for ambitious CEO Stefan Pierer. The brand fit for the Group is irresistible, with the sporty GASGAS range sitting perfectly as a beginner pathway between the high-end of the e-mountain bike sector and the Husqvarna and KTM Enduro, off-road, MX, ADV and, ultimately, street ranges.
The Group says it expects sales to increase to more than € 800m in the second half of 2020 and significantly higher than for the second half of 2019 (€ 765.3m). Annual sales for 2020 are expected to exceed €1,400m (FY 2019: € 1,520.1m). The e-bike division will already contribute sales of more than € 110m.
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| The updated KTM 450 Rally Replica - a 'good-to-go' 139 kg, 450 cc fuel injected single race bike with a single overhead cam and WP XACT PRO closed cartridge, cone valve front suspension system. |
The company says that "as a pioneer in electromobility for two-wheelers in the low-voltage range (48 volt), the Group and its strategic partner Bajaj have the prerequisites to assume a leading global role.
"With the take-over of the electric bicycle business from PEXCO, the Group took a next step into the
2-wheel electromobility segment. E-bicycle activities will continue to be promoted under the brands Husqvarna e-bicycles and R Raymon in order to participate in the growth of the e-bicycle segment and to become a major international player there.
"Thanks to our innovative strength, we see ourselves as the technology leader in the two-wheeler sector in Europe, and the partnership with Bajaj, India's second largest motorcycle manufacturer, strengthens competitiveness in global markets."
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| The 2021 KTM 300 EXC TPI (Transfer Port Injection) 2 stroke - one of eight 2021 EXC 2 and 4 stroke models and special editions that sees the range from 150 right up to 500 cc. |
The equally ambitious Bajaj will soon be starting to sell small and mid-displacement Triumph models in India and worldwide through Triumph and Bajaj outlets as the TVS acquisition of Norton, and Mahindra Mahindra's 100% ownership of the BSA and Jawa brands (and Peugeot Motorcycles in France), point to an Indian manufacturer scramble to keep up with the pace being set by Eicher Motors on the global stage with their new, all conquering Royal Enfield 650 cc parallel twins.
