The service market for scooters and motorcycles - France

1.2 A European market facing cyclical difficulties

The European motorcycle trade market offers an overview of the market potential for motorcycle services. ACEM, the association of European motorcycle manufacturers, reported that between January and September ****, the number of motorcycles put into circulation in the five main European markets was ***,***, a decrease of *.*% compared to the same period in ****. These main markets are :

france germany italy spain the United Kingdom

However, this figure shows a clear improvement compared to the first six months of ****, when the decrease was **% compared to ****. The Covid-** pandemic has therefore had a significant impact on the market.

Conversely, the number of scooters on the road during the period was ***,***, up *.*% from ****.

The main markets for scooters are :

belgium france germany the Netherlands italy spain [***]

Number of motorcycle and scooter registrations France, Germany, Italy, Spain, United Kingdom, ****-****, in thousands Source: ****

A new B*B market is currently developing with self-service. Users can take out a subscription or pay according to their use, which allows them to use the vehicles provided by the company present locally at will. In Paris, Cityscoot manages a fleet of *,*** electric scooters in **** . These vehicles, due to their higher than average use, are more often in maintenance. [***]

Such sales necessarily ...

1.3 France, a fragmented market made up of many companies

With the help of a report of the French Environment and Energy Management Agency, it is possible to offer information about the motorcycle repair and maintenance market in France

First of all, the market is very fragmented with many players. Motorcycle sales businesses generally also carry out repair work. At the end of ****, there were *,*** motorcycle trade and repair businesses, employing **,*** people in France, **% of which were dedicated to repair according to the professionals surveyed - i.e. *,*** jobs. If we add the *,*** self-employed jobs (***) in the repair sector, nearly **,*** people make a living from repairing two-wheelers in France, for a market worth an estimated *** million euros in ****

Next, we can estimate the market for the maintenance - excluding insurance - of a two-wheeler by taking into account several data:

Maintenance cost of a motorcycle (***) [***] Maintenance cost of a scooter (***) [***] Share of cylinder sizes less than ***cm ³ in France: **% (***) Share of cylinders over ***cm ³ in France: **% (***) Number of motorized two-wheelers in France: *.* million (***)

Estimated turnover of the maintenance market: E x (***) = *.* billion euros

*WD Fleet Features France, ****, in % Source: ****

1.4 A market hard hit by the Covid-19 pandemic

During the first six months of ****, at the heart of the Covid-** pandemic, the motorcycle market suffered with a **% drop in sales compared to the first half of ****.

Number of motorcycle and scooter registrations France, Germany, Italy, Spain, United Kingdom, ****-****, index base *** **** Source: ****

Antonio Perlot, Secretary General of the ACEM, explains that "the registration figures for the first * months of the year show that the sector is slowly starting to recover from the very difficult months of March and April **** which had put the sector in a situation of unprecedented financial stress. The situation remains delicate, and the uncertainty created by the COVID-** epidemic is not yet over".

However, there are still some opportunities for the sector. The European Union has extended the deadline for the sale of Euro * models, whereas the ban on these models was originally planned for ****. The Euro criteria are set according to the pollutant emissions (***) of the vehicles.

2.1 Demand and factors

Démographie

Pour dresser le portrait du consommateur moyen de services pour les deux-roues nous pouvons regarder qui sont les conducteurs de deux-roues.

Les conducteurs de deux-roues sont principalement des hommes (***) La moyenne d'âge est de ** ans (***) Les conducteurs de deux-roues occupent majoritairement des postes de cadre, cadre supérieur ou dirigeant (***) Ils possèdent généralement une voiture (***) [***]

Il n'y a toutefois pas de réelle uniformité entre les conducteurs de deux-roues, puisque les utilisateurs de moto et les utilisateurs de scooter présentent des caractéristiques assez différentes. Alors que les premiers utilisent leur deux-roues principalement par plaisir (***). [***]

L'immatriculation de véhicules neuf, principal moteur du marché

L'immatriculation de deux-roues neufs est en nette régression en France depuis une quinzaine d'années sur l'ensemble des catégories. Le segment qui a subi la plus forte baisse entre **** et **** est celui des tricycles et quads (***). Le segment des motocycles < *** cm* a chuté de **% et celui des cyclomoteurs de **%. Enfin, celui des motocycles > *** cm* est le seul à être resté plutôt stable avec une légère baisse de *% en douze ans.

Cette baisse peut s'expliquer par un désintérêt des populations les plus jeunes ...

2.2 The high seasonality of two-wheeler services

The use of two-wheelers is all the more important when the weather is good. There is therefore a strong seasonality in its use, with nearly nine out of ten drivers using their vehicle during the period May-September.

Do you use your two-wheeler between May and September? France, ****, in % Source: ****

This density of use during the spring and winter period is also found in the workshop, as more than six out of ten repairs take place between May and September. **% of workshop entries therefore take place over a period covering **% of the year. This can be explained logically by the increase in mechanical problems and accidents during a period when two-wheelers are in great demand.

Distribution of shop floor receipts France, ****, in % Source: ****

2.3 Do-it-yourself, a practice that reduces maintenance costs

Since motorcycle maintenance is still not mandatory, some motorcyclists choose to service (***). [***]

Coupled with an increasing use of the Internet by motorcyclists to collect information before buying or having their motorcycle serviced (***), maintenance is becoming more and more important.

On the other hand, do-it-yourself may have some disadvantages for motorcycle drivers. When the vehicle is resold, the buyer is given a detailed record of all overhauls, repairs and modifications carried out on the vehicle, which means that the buyer is not necessarily aware of the work carried out by the former driver. However, this disadvantage is more or less offset by the obligation to carry out an overhaul no later than * months before reselling the vehicle (***).

2.4 Growing demand for electric two-wheelers

The demand for two-wheelers is a hopeful segment for the market. There are real opportunities in B*C, with the desire of individuals to reduce their greenhouse gas emissions, and in B*B, with the development of free floating offers such as Cityscoot, Coup Mobility or Indigo Weel. Electric two-wheeler offers have even convinced some major traditional players such as La Poste, which has equipped its postmen with them. The introduction of Low Emission Zones and Restricted Emission Zones should further increase demand, particularly for last-mile deliveries.

Between **** and ****, sales of electric two-wheelers increased by **% and the trend is expected to continue in the coming years.

The State is also taking part in the development of electricity by offering an ecological bonus of up to €*** and a conversion bonus of €*** to encourage the purchase of electricity by private individuals. [***]

The graph below shows the progressive development of electric two-wheelers with the example of the scooter. In ****, there is a clear increase in the number of electric scooters sold compared to the two previous years. In July the increase is even ***%.

Electric Scooter Sales Trends France, ****-****, in units Source: ****

3.1 A sector composed mainly of small enterprises

A market made up of very small companies

The first characteristic of the market comes from the size of the companies. Repair and maintenance shops are not large complexes like car dealerships. Often very small companies are present in the market. For example, **% of the companies do not employ any employees and **% have only one to five employees.

Distribution of companies by size France, ****, in % Source: ****

This trend seems to be confirmed with the progressive decrease in the number of employees in the sector since **** (***). However, the decline seems to have levelled off since the trough reached in **** and the number of employees is gradually rising again.

Changes in paid employment in motorcycle repair trade France, ****-****, in thousands Source: ****

Typology of employees in the sector

The motorcycle and scooter service market employs mostly skilled workers (***).

Breakdown of employees by CSP France, ****, in % Source: ****

Concessionaires, franchisees and independents

A second important specificity concerning the organisation of the market is the way it is structured.

Garages that have decided to affiliate with a particular brand (***). This niche includes Suzuki, Yamaha, Peugeot dealerships, etc. Garages that specialize in repairing and maintaining vehicles, but do not engage in any type of vehicle business, such ...

3.2 The different forms of garages

B*B distribution

Garages that service and repair motorcycles do not manufacture the parts themselves, they rely on manufacturers or wholesalers. For example, a small independent garage will buy in bulk from companies like Malaguti, which makes parts for motorcycles, or, in the case of a more precise order, from suppliers like Akrapovic, a manufacturer of exhaust systems for cars and motorcycles, or GS, a battery manufacturer.

B*C distribution

The second dimension of distribution in the market takes place between companies and consumers. The motorcyclist arrives in the garage and asks the specialist for a service. In this case, there are three types of garages:

Motorcycle dealers: while these sell new vehicles, either as part of an exclusive partnership with a specific brand (***), they also offer equipment for the motorcyclist and his vehicle and provide maintenance and repair services in one of their workshops Motorcycle garages: their main activity is the repair and maintenance of vehicles (***). However, some of them also sell used motorcycles Fast repairers and accessorists: their core business is divided into two parts. On the one hand, they sell equipment for motorcycles (***).

3.3 A sector dominated by motorcycle dealers and garages

As explained above, the main players in the motorcycle repair sector are dealerships, motorcycle garages, quick and accessory repairers and auto centres.

However, not all of them are equally represented in the sector's turnover. Motorcycle dealers and garages have an **% market share in motorcycle workshop entrances and **% in scooters. Dealer garages therefore dominate the sector with more than half of the market share, ahead of motorcycle garages with between a quarter and a third.

Market shares of the players on the workshop entrances France, ****, in % Source: ****

Market shares of players on scooter workshop entrances France, ****, in % Source: ****

4.1 Available services

In the market for two-wheel services, it is necessary to distinguish, once again, between repair services - which restore the mechanics and appearance of the motorcycle to its original state, after a puncture for example - and maintenance services, the purpose of which is to extend the life of the vehicle - which can be done by via a superficial overhaul of the vehicle or the replacement of some parts.

Repair Services  

When the rider encounters a damage, he should call the garage to restore the motorcycle to its original condition. Apart from replacing a tyre in the event of a puncture, some services are particularly required:

Problem with the electrical system, and therefore with the starting system Problem with accessories (***) Brake Malfunction Fuel system problem

Maintenance Services

On a more regular basis, a two-wheeler driver maintains his vehicle to extend its lifespan. He can do this alone (***). Here are the common maintenance actions:

Cleaning: once a month to avoid wear and tear on certain parts. This involves cleaning the two-wheeler and then protecting it with a protective wax. Revision: to be carried out every *** / **** km during the first months. It is advisable to have your bike serviced every *,*** km after ...

4.2 Maintenance contracts and fee-for-service payment

Maintenance contracts

Dealers and garages are increasingly trying to offer maintenance contracts to drivers in return for a lump sum payment and compliance with certain rules. Garages undertake to provide free insurance:

The regular overhaul of the two-wheeler Oil changes Replacement of wearing parts (***) The workforce

Depending on the services included in the contract, prices can range from ** € for the cheapest to *** € for the most expensive.

Punctual interventions

If the driver does not opt for a maintenance contract or for interventions not included in the fixed price, the intervention is invoiced to him. By using the catalogue of Moto Expert we can break down the price of the various maintenance services

Fixed cost of the intervention: very variable, it depends on the material to be replaced, prices often vary between ** € and ** €, but some interventions can go up to *** €. Prices vary little between garages. Hourly labour cost: approximately ** €. Cost of the material: it strongly depends on the spare parts used during the intervention (***), according to the dafy Moto catalogue .

Concerning the fixed costs of the interventions, it is important to note that the type of two-wheelers induces different costs:

Scooter, **cc and ***cc: these three ranges of two-wheelers are generally cheaper to ...

5.1 Rights and duties of the garage owner

The website Droit-finances lists the rights and duties of the garage owner:

Clear and visible display of prices including VAT Drafting and signing of a repair order (***) at the request of the customer Issuing an invoice at the customer's request if the amount is higher than ** € Customers have the right to keep the parts of the vehicle that have been changed. The garage is subject to an obligation of result. If a defect or breakdown persists after a visit to the garage, legal action may be taken. In the event of a price dispute, the customer must first pay before being able to recover the vehicle (***). In other words, in the event of refusal to pay, the garage has a right of retention of the vehicle.

5.2 Regulations for two-wheelers

Numerous regulations have been passed in recent years to update the safety and environmental standards governing the two-wheeler industry (***)

Technical control

Previously optional, roadworthiness testing should soon become compulsory for motorcyclists. Thus, it would become compulsory in the following cases:

When selling a vehicle, the last inspection must be carried out no more than * months ago Regularly imposed on European motorcyclists by the European Commission, from **** at the earliest, according to law-finances .

Security

As of ****, all two-wheelers over ***cc must have an anti-lock braking system and automatic lights. Motorcycles are no longer restricted when they are sold, as they were before.

Environment  

Motorcyclists have to comply with the Euro * standard since ****. They then had to meet the Euro * standard in ****. However, due to the Covid-** pandemic, manufacturers will be able to register Euro * vehicles representing up to **% of their turnover for the last two years. [***]

These European standards set certain limits on pollutant emissions (***), excluding CO*, for vehicles.

Vehicles will also be required to carry a diagnostic system to check the operation of these anti-pollution systems. Legislation in this area has become tougher with the fallout from Dieselgate, a scandal concerning car manufacturers.

6.1 Segmentation of players

• Michelin Groupe
• Brembo
• Yamaha Motor
• Honda Motorcycle
• BMW Mottorrad
• Peugeot Motocycles
• Moto Dôme Services
• Izyscoot
• Dafy Moto
• Moto Axxe
• Moto Expert
• Bihr
• Repair and Run
• P2R