news ROOM KTM posts record results for eighth BRIEFS consecutive year NEWS The work of the Connected Motorcycle CMC continues, with the objective being to make sure that the “very different riding dynamic and behaviour of motorcycles” are integrated into the moves to see cars and other four-wheel traffic embrace Vehicle-to-Vehicle (V2V) Cooperative Intelligent Transport System (C-ITS) collision avoidance and traffic flow technology. In 2014 all the motorcycle manufacturing members of ACEM committed to introducing at least one model equipped with C-ITS functionality by the year 2020.The CMC was founded in 2016 by BMW, Yamaha and Honda; since then Kawasaki, Suzuki, KTM and Ducati have also joined. Yamaha posted net motorcycle sales revenue of 770.3bn yen for its Q3 ended September 30, 2018, down by - 1.5% (-11.8bn yen), with operating income down by -16.7% (to 45.3bn yen). Emerging markets such as Indonesia and the Philippines saw growth in unit sales; developed markets saw a decline in unit sales and sales income. Overall corporate net sales were 1,262.0bn yen (+11.3%). Total unit sales in Europe for the 9- month period were 145,000 down from 170,000 for the year ago period. Total global unit sales were 4,015,000 units, up from 3,914,000. BC Battery Controller, the motorcycle division of Italian manufacturer Forelettronica, has opened a new flagship store in Thailand (Bangkok). “The new point of sale represents a further step for BC in the internationalisation of the brand, which is already present in 40 countries worldwide,” said Marketing Manager Giovanni Foresti. KTM Industries AG, parent company of KTM Motorcycles, sold 261,454 motorcycles in 2018, which is +10% over 2017 and an eighth consecutive record year as the Austrian manufacturer confirms its position as Europe’s largest motorcycle maker and continues to close in on its previously announced target of achieving production of 400,000 units in 2022. Sales revenues were +2% on 2017 at 1,560m euro, with EBIT (Earnings Before Income Tax) up by +21% to 161m euro despite making some 184m euro capital investments in its Austrian sites during the year. KTM recorded a 130.5m euro benefit from the sale of the Pankl-Group to CEO Stefan Pierer’s Pierer Industrie Group in June 2018, further strengthening the balance sheet structure and reducing net debt. The company says it achieved “above average market share increases in the key markets” with both the KTM and Husqvarna brands, with KTM registrations of +21.5% corresponding to a market share of 11.7% at the end of 2018. In the overall declining US market in 2018 (-2.3 %) KTM increased registrations by +8.5% and increased their market share to 8.9% at the end of 2018 – citing the new launches of the KTM middleweight class Duke 790 and the first Husqvarna street motorcycles (401 Svartpilen/Vitpilen and 701 Vitpilen) as proving popular in the United States. KTM sold 212,899 motorcycles and Husqvarna 48,555 in the financial year 2018. Of the investments in their Austrian operating sites, around 106m euro was invested in product development (including tooling) for further future growth, and around 78m euro went into plants and infrastructure - including the expansion of the R&D center in Mattighofen. By the end of 2018 KTM’s employee count was up to 4,300, with 3,625 of them in Austria. For 2019 KTM says it will “continue to focus on organic growth in all core areas. The objective is to further expand market shares in the markets that are important for KTM and Husqvarna - despite the challenging market environment. Shifting the production of the Husqvarna street motorcycles (up to 400 cc) to our strategic partner Bajaj (in India) in Q4/2019 also gives us the opportunity to produce Husqvarna entry-level motorcycles at competitive manufacturing costs, thus further increasing sales in the emerging markets. “In addition, due to the strong growth of the electric bike joint venture, PEXCO, located in Schweinfurt, Germany, full consolidation is already planned for 2020/21”. Kawasaki Q3: unit sales up in “developed markets” Kawasaki has released its financial performance details for Q3 and first nine months (the period ending December 31st) of its ’18-‘19 financial year, and in motorcycle division terms reports “moderate growth” continuing, mainly in Europe, but is seeing “decreasing demand” for their product offer in emerging markets - though the cycle of decline Kawasaki has been locked into in emerging markets in recent years appears to be bottoming out. In its utility vehicle markets the company reports that stable growth continues, mainly in North America. In unit terms Kawasaki shipped 100,000 units to its developed markets in Q3 (worth 78.8bn yen), and 253,000 units in emerging markets (60.1bn yen), for a global total of 400,000 units in Q3 (worth 226.2bn yen).