BMW looks to small motorcycles to push annual sales to 200000 target

BMW looks to small motorcycles to push annual sales to 200,000 target

by David Furlonger, 2015-11-11 16:06:19.0

MOTORCYCLE manufacturer BMW is hoping that its introduction of a new range of small motorcycles will help propel the company towards its target of 200,000 annual sales by 2020. That is a 50% increase on this year’s expected sales of just more than 130,000.

Alexander Baraka, GM of BMW Motorrad (the official name of BMW motorcycles) in SA, said on Wednesday he expects the new range to attract a fresh generation of young customers in SA.

In the past, BMW has not built motorcycle engines smaller than 500cc. However, on Tuesday, worldwide Motorrad president Stephan Schaller announced in Munich the launch of a new 300cc roadster designed with emerging markets in mind.

Although the motorcycles will be sold in all markets where BMW operates, Mr Schaller said Brazil and China were particularly important targets.

If the 300cc single-cylinder roadster, the G310R, is a success, BMW Motorrad would not rule out even smaller engines in future, he said. Until now, BMW has built its reputation as a manufacturer of big, premium motorcycles.

The G310R roadster is due to arrive in SA in the second quarter of 2016, followed by a new off-road bike, the R nine T Scrambler, in the third quarter. Mr Baraka said the roadster was especially key, as it would bring the BMW brand within reach of more customers.

In an interview, Mr Schaller said SA was BMW’s most important African motorcycle market by some distance. This year the company expects to sell just more than 3,000 units here. The G310R would build on that.

However, he did not have immediate high expectations of the rest of Africa. While he hoped for some growth, “most customers there are looking for motorcycles in the sub-€1,000 range and that is not for us. As disposable income grows in Africa, more people will be able to afford us but that’s not widely the case at the moment.”

He said BMW could not achieve its 200,000 sales goal without moving down in size.

“We are very successful in the premium segment of motorcycles over 500cc. That segment has a global market volume of about 860,000 units right now.

“That will change only marginally in the years to come. So it does not offer the growth potential we are looking for. The logical consequence is that we will have to tap into new markets with new products. The segment of smaller engine capacities of between 125cc and 500cc offers the ideal prerequisites for our plans.

“According to market research findings, this market will grow significantly by 2020. So it is the ideal environment to attract new customers.”

Florian Renndorfer, general manager of BMW Motorrad Asia Pacific, Middle East, China and SA (left) with Alex Baraka, GM of BMW Motorrad SA. Picture: BMW SA

MOTORCYCLE manufacturer BMW is hoping that its introduction of a new range of small motorcycles will help propel the company towards its target of 200,000 annual sales by 2020. That is a 50% increase on this year’s expected sales of just more than 130,000.

Alexander Baraka, GM of BMW Motorrad (the official name of BMW motorcycles) in SA, said on Wednesday he expects the new range to attract a fresh generation of young customers in SA.

In the past, BMW has not built motorcycle engines smaller than 500cc. However, on Tuesday, worldwide Motorrad president Stephan Schaller announced in Munich the launch of a new 300cc roadster designed with emerging markets in mind.

Although the motorcycles will be sold in all markets where BMW operates, Mr Schaller said Brazil and China were particularly important targets.

If the 300cc single-cylinder roadster, the G310R, is a success, BMW Motorrad would not rule out even smaller engines in future, he said. Until now, BMW has built its reputation as a manufacturer of big, premium motorcycles.

The G310R roadster is due to arrive in SA in the second quarter of 2016, followed by a new off-road bike, the R nine T Scrambler, in the third quarter. Mr Baraka said the roadster was especially key, as it would bring the BMW brand within reach of more customers.

In an interview, Mr Schaller said SA was BMW’s most important African motorcycle market by some distance. This year the company expects to sell just more than 3,000 units here. The G310R would build on that.

However, he did not have immediate high expectations of the rest of Africa. While he hoped for some growth, “most customers there are looking for motorcycles in the sub-€1,000 range and that is not for us. As disposable income grows in Africa, more people will be able to afford us but that’s not widely the case at the moment.”

He said BMW could not achieve its 200,000 sales goal without moving down in size.

“We are very successful in the premium segment of motorcycles over 500cc. That segment has a global market volume of about 860,000 units right now.

“That will change only marginally in the years to come. So it does not offer the growth potential we are looking for. The logical consequence is that we will have to tap into new markets with new products. The segment of smaller engine capacities of between 125cc and 500cc offers the ideal prerequisites for our plans.

“According to market research findings, this market will grow significantly by 2020. So it is the ideal environment to attract new customers.”

BMW looks to small motorcycles to push annual sales to 200000 target