PIERER Mobility Group, the Austrian motorcycle/two-wheel juggernaut and parent company of KTM, Husqvarna and GasGas, reported a strong first half of the year with revenue growth of 20.2 % to a new record €1,387.6 million ($1.5 billion USD), according to the company’s press release.
The motorcycle segment saw a solid increase of 19 %, while the bicycle segment grew 37 % in revenue for the first half year. Group-wide, Europe accounted for 59 % of the revenue, while North America was responsible for 28%. The rest of the company’s markets came in at 13 %.
The operating result (EBIT) of € 96.9 million in the first half of 2023 is above the previous year’s figure of € 92.8 million. The strong performance in the motorcycle segment (+16.6%) compensates for the negative deviation in the bicycle segment. The bicycle market as a whole has undergone major changes. The consolidation that has already begun and is expected will have profound effects on the entire bicycle industry.
With 190,293 motorcycles sold in the first half of 2023 (previous year: 163,334), the motorcycle segment achieved a sales volume increase of 16.5 %. The bicycle segment also achieved sales volume growth of around 39 %, selling 71,401 e-bicycles & bicycles (previous year: 51,417).
The increase in units sold in both segments was particularly strong in Europe. Here, sales to dealers were 76,767 motorcycles (+25%) and 59,212 bicycles (+40%). Almost 60% of the motorcycles were sold in markets outside Europe, predominantly in North America with 50,472 units (+13%) and in India with 33,029 units, with a strong increase of 81% compared to the previous year.
Growth in the bicycle segment was particularly pleasing in North America, where 9,184 units were sold in the first half of 2023, which is an increase of 33% year-over-year.
Increasing market share in key motorcycle markets
Despite the overall economic environment, the group was able to either maintain or increase existing market shares in the global markets.
In Europe, the motorcycle market recorded a significant volume increase of 11.1 % compared to the first half of 2022, reaching a volume of around 470,000 newly registered motorcycles. The main drivers of this development can be seen in the German (+15 %), Italian (+14 %) and Spanish (+15 %) markets as well as KTM’s home country Austria (+14 %). In addition, the PIERER Mobility Group with its motorcycle brands KTM, Husqvarna, and GASGAS, was able to surpass this development with an increase of 20% in registrations and achieved a market share of 10.2% (half-year 2022: 9.9%).
In North America, the overall high market volume from the first half of 2022 of around 290,000 newly registered motorcycles was maintained in the first half of 2023. At the same time, the KTM Group was able to expand its market position with a share of 12.3 % in the USA and 16.9 % in the Canadian market (both markets together: 12.9%; first half of 2022 together: 10.6%).
The company’s strategic partner, Bajaj, sold more than 32,000 motorcycles of the KTM and Husqvarna brands in India, which corresponds to a market share of 5.7% (+1.6 percentage points compared to the first half of 2022).
KTM and CFMOTO double production capacity
The cooperation with CFMOTO ramped up in the first half, and the newly founded joint venture in China will handle the production of KTM’s mid-range models (790 Duke and 790 Adventure). The strategic partnership now also includes model planning and the joint development of engines and vehicles. In addition, KTM and CFMOTO have decided to increase the production capacity of their joint ventures from 50,000 to 100,000 vehicles. As a sign of the strengthened cooperation, CFMOTO has also increased its share in PIERER Mobility AG to 2.0%.
Positive outlook for 2023
In the second half of 2023, the company says it will focus on growth in its core areas; both motorcycles and e-bikes. Despite the many challenges, especially in the bicycle market, the executive board expects to see revenue growth between 6-10% with an EBIT margin of 8-10%.