Motorcycle and Bicycle Manufacturers

The 423 manufacturers in the US produce motorcycles, bicycles, and scooters, as well as related parts, components, accessories, and apparel. Various models of cycles, which include on-road and off-road cycles, offer different types of rides. Firms may specialize in a particular type of bike. Channels of distribution include wholesalers, distributors, dealers, and retailers. Firms may also sell products directly to riders through websites.

Competition from Foreign Manufacturers

Foreign manufacturers dominate the global and domestic motorcycle and bicycle market, due to lower material and labor costs.

Competition from Used Cycles

Demand for new motorcycles typically drops when the supply of used cycles rises or when the price of used cycles decreases.

Aug 24, 2026 - Higher Duties Complicate Production Planning

• New US trade actions could raise input and sourcing costs for motorcycle and bicycle manufacturers, while strengthening incentives for domestic production, according to a recent Motorcycle & Powersports News report. Section 301 tariffs of generally 10%–12.5% on imports from more than 80 countries took effect July 24, adding costs to many imported components and materials. Beginning Aug. 19, certain Canadian imports—including motorcycles over 800cc—will face an additional 50% duty, while expanded Section 232 tariffs continue to affect imported steel and aluminum. For manufacturers, higher material and component costs could pressure margins or lead to higher wholesale prices, while supply chains may shift toward U.S. or lower-tariff suppliers. The new aluminum onshoring incentive could eventually help domestic producers secure lower-cost metal inputs. Overall, trade policy favors greater US sourcing but creates near-term cost and planning uncertainty.
• Harley-Davidson’s Q2 2026 performance points to improving conditions for US motorcycle manufacturers, with North American retail sales up 3%, wholesale shipments up 9%, and HDMC revenue up 6% to $1.1 billion. Dealer inventory in North America fell 15%, helping align production more closely with retail demand, while Harley raised its full-year retail and wholesale unit guidance. For the broader motorcycle and bicycle manufacturing industry, the results suggest healthier channel inventories, improving demand, and continued opportunity from new models and electrification. LiveWire revenue rose 52%, helped by higher electric motorcycle and STACYC balance-bike sales. However, tariffs, supplier issues, and affordability remain risks to production costs and margins.
• Weakening consumer confidence in mid-to-late summer pointed to a softer demand outlook for US bicycle and motorcycle manufacturers, as both products are highly discretionary and sensitive to household finances. The University of Michigan’s preliminary August 2026 Consumer Sentiment Index fell to 51.0, down 7.6% from July. Current Economic Conditions declined to 51.8, while Consumer Expectations dropped to 50.6. With only 8% of consumers expecting income growth to outpace inflation, weaker retail demand could prompt manufacturers to moderate production, manage inventories carefully, and emphasize value-oriented models. The Conference Board’s July 2026 Consumer Confidence Index slipped to 90.8 from 92.2 in June. Its Present Situation Index fell to 114.9, while Expectations remained weak at 74.7. Softer confidence could restrain dealer orders, though premium demand may remain more resilient among higher-income buyers.
• Dealer Spike's State of the Dealer 2026 report, drawn from over 6,800 dealerships, reveals a widening performance gap in the US motorcycle and powersports sector. Top-performing dealers generate 4.5x more leads and turn inventory 54% faster than peers. With 54% of customer traffic occurring after hours, dealerships face pressure to invest in digital retailing tools to capture online shoppers. Rising cost-per-click (CPC) is squeezing acquisition budgets, while dealers conducting weekly inventory reviews show measurable gains. The report signals that US motorcycle and powersports dealerships must modernize digital experiences and leverage data-driven strategies to sustain growth amid tighter margins and increasingly demanding consumers.

Industry size & Structure

The average US motorcycle or bicycle manufacturer operates out of a single location, employs less than 20 workers, and generates about $9.3 million annually.

• The motorcycle and bicycle manufacturing industry consists of about 423 firms that employ over 8,500 workers and generate about $4.9 billion annually.
• The industry is highly concentrated; the top four companies account for about 65% of industry revenue.
• Large motorcycle manufacturers include Harley Davidson, Indian (Polaris), Honda, and Kawasaki. The largest bicycle manufacturers started as US companies but were eventually acquired by foreign firms, such as Giant (Taiwan), United Wheels (Hong Kong), and Pon Holdings (The Netherlands). Most US firms are low-volume producers that specialize in niche products for hard-core bikers. Large domestic firms include Trek and BCA.
• The median age of a motorcyclist is 50 years old, according to the Motorcycle Industry Council. Over 80% of riders are male. The median household income of motorcyclists is $62,500.