Against the flow: Kymco cuts prices

Ofer Avnir, the importer of Kymco, announced today a price reduction for two of its mid-range scooters. These are the DTX360 and the Xciting S400, whose prices are reduced by NIS 2,600 and NIS 4,700, respectively.

For those less familiar with the mid-range scooter scene, the DTX360 is essentially the scooter equivalent of the crossover trend in the car market. Based on the well-established and proven Downtown model, the manufacturer has created a scooter with mostly cosmetic off-road features, such as a mudguard, wide handlebars, a higher seat, dual-purpose tires, and more. Beneath this rugged appearance is a 320cc engine with 28.4 horsepower and 3.05 kgm of torque.

And alongside the surprise of the price cuts, a move that has become very rare in the Israeli automotive market, it's worth noting a small "but" - the new price of NIS 37,000 instead of NIS 39,600 is essentially a return to the original price of the model when it was launched in Israel in May 2022, which was NIS 38,000. The reason for this price fluctuation lies in the tax increase on two-wheeled vehicles with engine capacities of 251-400cc, from 40% to 50%, in January 2024. So, in fact, the reduction returns the prices to what they were before the tax hike.

The second vehicle to receive a price reduction is the Xciting 400S, a scooter that belongs to the "Executive-Sport" category. It features a relatively sporty design alongside a comfortable and supportive seat. In addition to a relatively powerful engine with 35.4 horsepower, it is equipped with components that provide better road handling than average scooters, including a front suspension with two steering triangles similar to those found on motorcycles.

Similar to the case of the DTX360, the Xciting, which arrived in Israel about four and a half years ago, entered the competition with a lower price tag than its rivals. Initially priced at NIS 38,000, it has increased over the years to NIS 44,700. Now, with the price reduction, it returns closer to its original price, costing NIS 40,000.

Like the car market, the two-wheeled market, which has experienced growth in recent years, has been significantly impacted by the war. Partly due to the general economic slowdown and later with a difficult and slow recovery due to the disruption in maritime supply lines from manufacturing sites in the East – the main source of scooters for the local market. The data indicates a 15% decline in the motorcycle sector and a 12% decline in scooters.

In the current situation, where everyone is in the same "boat" and facing challenges, importers are looking for any opportunity to break through, both to weather the current crisis and as a platform for healthier times in the economy. In the case of Kymco, the price reductions are partly aimed at allowing it to expand its grip on the mid-range scooter market share, currently the largest in the local market.