Motorcycle sales return to levels of financial crisis

Without outlining the expected reaction by the manufacturers, the motorcycle market remains in freefall this year-the second followed by low-and is returning to the levels of 2009, when the sector was severely affected by the credit crunch. In the first half, sales, pressed by the restrictive credit, fell almost 12%, for a total of 748.3 million licensed motorcycles in the country, below the 765.7 thousand units from the same period of 2009.
Only Honda, handily in that market leader, with more than 80% of sales, saw a drop equivalent to 70 thousand volumes bikes got their plates. But the crisis is almost generalized, saving only the brands operating in the premium segment, as BMW, Kawasaki and Harley-Davidson, which are less affected by the selectivity of banks (see chart).
In the free zone of Manaus, where is concentrated almost all production of motorcycles in the country, automakers adjust to new heights on the market with labor cuts and a lower production rate. Since last year, more than 2.6 million jobs were eliminated in two-wheel industrial pole that today occupies 18.5 thousand people, according to a survey of Suframa. In the period, production stops were also made by the manufacturers, including Honda, which, in a normal situation, would be able to produce a bike every eight seconds. In July last year, the automaker had to extend the collective vacations in seven days, given the lack of market reaction.
This month, the factories will further decrease the pace because of the collective vacations planned for most of the lines. Kasinski factory, however, is stopped for about a month. The company anticipated the collective vacation and his staff have not yet returned because now are on paid leave over 30 days, according to local metal workers Union.
Despite the collapse of almost the entire industry, no automaker has lost so much market as the Kasinski. Between January and June, the brand's sales have dropped by half, with just over 5 thousand units emplacadas. The company assigns negative performance credit retraction in the Northeast, where is the largest motorcycle market in the country and region in which the Kasinski also has significant portion of sales.
This is the second crisis that crosses sector in five years. In 2009, at the height of the global financial crisis, the problem was the lack of credit, but the Government managed to bail out the industry with special financing lines and the removal of the collection of the Tax on sales of motorcycles. The measures, along with the acceleration of the economy, the market reaction in the two years following, leading to record more than 2 million motorcycles sold in 2011.
Last year, the volumes were falling and the public banks were again driven to rescue the sector. In October, Banco do Brazil and Caixa Economica Federal announced special motorcycle financing conditions, after the Central Bank compulsory deposits released for this purpose. This time, however, private banks have lagged behind.
Utilities and industry sources report that the selectivity persists. According to them, every ten credit requests, only two or three are adopted. Cetip's numbers show a 16% reduction in the number of new motorcycles financed this year, among the types of credit to the consumer (CDC) and consortia.
In December, the Abraciclo, the entity that houses the manufacturers of motorcycles, designed for 2013 an increase of 2.4% of sales and 3.7% in the production, after assessing that the sector had already reached the bottom of the well. The targets, however, became little feasible and should be reviewed today, when will be presented the results of June and the first half of the year. Until may, the wholesale sales-to-dealers of automakers fell 11%, while the production gave up 17.3%.