Motorcycle and Bicycle Manufacturers NAICS 336991

Jun 27, 2025 - Motorcycle Sales Dip in Q1

• The Q1 2025 report from the Motorcycle Industry Council revealed a sales decrease of 7.8% of new motorcycles and scooters among leading brands year over year, despite strong sales in certain other segments, according to Dealernews. Industry officials said some unusual weather, such as snow in Florida, may have also had an impact on sales. According to Anthony J. Kestler, VP, Sales and Marketing at Kawasaki Motors Corp., "There continues to be uncertainty in the market regarding forthcoming tariffs and their impact on powersports OEMs and customers. The US motorcycle market is down in the first four months of 2025, but Kawasaki has realized strong retail results in overall motorcycle sales." Another top motorcycle manufacturer, Yamaha, reported its motorcycle sales were on pace with the company’s forecast in the first quarter of 2025 while sales of competition and off-road bike sales remain higher than pre-COVID.
• According to a report in CFO Dive, consumer sentiment, an indicator of discretionary spending, rose in June in large part due to a lull in the tariff war. The final index of consumer sentiment from the University of Michigan grew 15.9% in June 2025 from the previous month, as the Trump administration put some tariffs on hold against major US trade partners. Year over year, the index of consumer sentiment was down 11.3%. An index measuring consumers’ expectations for the future was up 21.9% from the previous month, but was down 16.1% year over year. According to survey director Joanne Hsu, “Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.” Hsu noted that consumers’ views of business conditions, personal finances, buying conditions for big ticket items, labor markets and stock markets all remain below six months ago.

• The US motorcycle and bicycle manufacturers industry is projected to grow at a CAGR of 4.58% between 2025 and 2029, faster than the overall economy's anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Consumer sentiment is expected to improve in the forecast period, which bodes well for the durable goods manufacturing industries including motorcycle and bicycle manufacturers. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer to an extent if average prices rise due to tariff implementation. The forecast noted that tighter immigration policy could limit expansion of the labor supply and job growth.
• Motorcycles are on a list of American products that the European Union (EU) has targeted for tariffs effective in July 2025, unless negotiations can deliver a more beneficial solution prior to that time, according to a report in iMotorbike. The report said the European officials are considering reinstating and increasing motorcycle tariffs up to 56% (a 50% retaliatory tariff and a 6% base duty), in light of the Trump administration’s reciprocal tariffs announced in April. (Trump has paused the country-specific reciprocal duties for a 90-day period.) According to the report, a Harley Road Glide that sells for about $28,000 in the US could cost consumers in Denmark approximately $124,000 under the proposed tariff plan. In 2018, tariff turmoil caused Harley-Davidson to absorb $166 million in additional duties instead of raising prices. Options for US motorcycle manufacturers if EU retaliatory tariffs are implemented include price increases, production relocations, and exits from certain European markets.