EU Driving License - Watch For This To Be Tried Here

OFF THE WIRE
LinkedIn Groups
• Group: Motorcycle R&D
• Discussion: Is motorcycling becoming an old man's hobby and therefore slightly uncool to the under 35 year old consumer?
We believe the bigger obstacles are:

- Licensing laws
- Insurance Costs
- Lack of exciting entry level products

- Licensing laws:

Here in Europe a major factor affecting the supply of new riders to the market has been the introduction of various EU Driving License Directives.

`2nd Directive' has been in force in Europe since 1996: Under 21s must take test on 120-125cc, then 33bhp limit for 2 years Over 21s may take `Direct Access' test on 500cc for unrestricted license.

`3rd Directive' will apply from 2013: Seeking to encourage progressive access by introducing additional 35kw (47bhp) restriction until an additional test is taken on machine over 600cc. Age of Direct Access might be raised to 24.

Gen Y'ers want to get the bike they lust after now not in 5 years time. Unless new models are developed which fit within the restrictions it is reasonable to predict that the 3rd European Driving Licence Directive will push potential new motorcyclists into abstaining for even longer.

- Insurance Costs:

The high cost of insurance is also a major factor affecting sales in the 15 to 34 age
range. The soaring cost of litigation, expensive vehicle repair bills and high volumes
of claims by inexperienced bikers has made the cost of insuring motorcycles
prohibitively expensive for many young riders. There is a significant difference in the insurance classification of available models; for example the popular learners bike, the CBF500 (group 9) and the 600cc supersports class (group 14) which rules out the supersports for the majority without a significant `No claims bonus'.

ACEM's figures show that for a young rider the cost of insurance can now easily outweigh the cost to purchase a machine and unlike the initial purchase this is an annual cost.

- Lack of exciting entry level products:

Today the introduction of Euro2 and Euro3 EU emissions regulations and changes in
both the European and Japanese licensing laws have meant that the lightweight
supersport segment is practically un-catered for. As a result some of the milder and
more forgiving 500-750cc machines have migrated into beginner's bike list. First
bikes tend to be 50bhp or less and 180kg or less. The further a bike is above those
limits, the more cautious new riders appear to be about purchasing.

The Suzuki GS500 and Honda CB500's are now considered by many the best choice
as a first bike: relatively light, inexpensive, not too much power (consequently
cheaper to insure), and available new and used. The current CB500's/CG500's offer a
sensible package but they are not evocative or highly desirable, they do not inspire young
people.

This void of desirable products offered at entry level adds to the licensing restrictions
in pushing young riders into abstaining.

The now discontinued 250cc two stroke and 400cc four stroke class of `Lightweight Supersports' represented a good balance of looks, performance and affordability to fill the void between the `learner' bikes and outright supersports 600s. Other than Kawasaki's Ninja 250 where are these products today?

The high re-sale value of 10 year old second hand Supersport 400s (RVF400's still sell for 3k to 4k) suggests that many consumers in this market already decide against buying new and look for privately sold models instead; independently financing the purchase, forgoing dealer warranties and after sales care.

Posted by Mark Wells