Motorcycle and Bicycle Manufacturers NAICS 336991

Apr 21, 2025 - Faster Growth Forecast

• 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.

• Harley-Davidson has forecast its 2025 motorcycle revenue to be flat to under 5%, as consumers are expected to exercise caution with big-ticket purchases, according to a report by Reuters in MSN. Sales of leisure vehicles have fallen off since the pandemic. Lackluster sales have been compounded by lingering inflation and high borrowing costs, as US consumers have prioritized spending on necessities. According to the report, Harley-Davidson has lost the business of some younger consumers who are instead purchasing modern, feature-packed, and affordable bikes from different manufacturers. Harley-Davidson’s revenue in 2024 was 11% lower than the previous year, marking the second consecutive year of declining sales. The company has announced it is boosting its investment in entry-level offerings and expanding its small bike line up, per a report by Top Speed.
• Bicycle manufacturers based in America are having difficulties finding components made in the US, according to a recent Wall Street Journal report. The report cited the Guardian Bikes company that shifted its production from China to the US in 2022, yet its CEO Brian Riley said the firm still has to rely on parts made in China due to few components being available in the US. Industry estimates show that almost all bicycles sold in the US are imported, and most are made in China or assembled from Chinese parts. Riley said he thought the tariffs planned by President Donald Trump may help him shift to US components faster by making American-made bikes and parts more competitive against Chinese-made ones. Currently, components from China make up 90% of the total cost of Guardian’s parts. Riley said he hopes to reduce it to 20% by the end of 2026, after starting up the manufacturing of the company's own bike frames and finding more stateside sources. US tariffs on China during the previous Trump administration saw some bike manufacturers move production to other countries less affected by tariffs such as Taiwan, Thailand, Vietnam, and Cambodia.