Motorcycle Dealers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,000 motorcycle dealers in the US sell new and used motorcycles plus other powersport vehicles. In addition to motorcycles, products sold include motor scooters, motorbikes, mopeds, all-terrain vehicles (ATVs), and personal watercraft. Companies typically sell replacement parts or accessories and offer repair services. Some companies offer maintenance programs.
Dependence on Motorcycle Manufacturers
Dealers rely on a limited number of manufacturers to develop compelling new products that customers will buy.
High Capital Requirement
The ability to secure floor plan financing is critical to funding inventory purchases.
Industry size & Structure
A typical motorcycle dealer operates out of a single location, employs less than 20 workers, and generates $4-5 million annually.
- The motorcycle dealer industry consists of about 6,000 companies, employs 71,000 workers, and generates over $28 billion annually.
- The industry is fragmented - the top 50 companies account for just 17% of sales.
- The largest dealers operate "superstores", which stock a wide range of products and serve an extended geographical market. The largest Harley-Davidson dealers can generate more than $50 million annually.
Industry Forecast
Motorcycle Dealers Industry Growth
Recent Developments
Oct 27, 2024 - North America Ranks Highest in Average Price
- North America had the highest average motorcycle prices in major global markets during the past six months, with an average price of $12,454, according to MotorCycles Data. The next highest price markets during the period were Western Europe ($12,212 average) and Latin America ($3,170). Sales for motor vehicle and parts dealers in the US declined 6% in June 2024 compared to a year ago and were down 9.7% from the previous month, according to the Census Bureau. Employment by motorcycle, boat, and other vehicle dealers fell 6.1% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees grew 4.3% in July 2024 year over year, reaching $28.21 per hour. In addition, consumer spending levels have been consistently higher through the first six months of 2024, compared to year-ago levels, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- The US motorcycle dealers industry is projected to grow at a CAGR of 0.9% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy‘s anticipated growth. The report noted that consumer confidence is expected to improve in the forecast period, which bodes well for the retail and wholesale industries. Factors that continue to limit consumer spending are lower consumer sentiment levels, higher interest rate levels, and elevated price levels. On a positive note, inflation is subsiding, which supports a moderate increase of real disposable income by about 1.9% in 2024 and 2.4% in 2025.
- Consumer confidence levels fell in September 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 98.7 in September 2024 compared to 105.6 in August 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under the age of 35 and those in the income category of over $100,000. Plans for laptop/PC and smart phone purchases declined on a six-month average basis. Plans to buy a home or a new car improved slightly on a six-month average basis.
- A group representing 200 Harley-Davidson dealers in the US says the bike manufacturer is shipping them too many bikes during a period of slow sales, according to the Wall Street Journal. The Harley-Davidson Dealer Council of the National Powersports Dealer Association said in a letter viewed by the WSJ the increased bike shipments have caused dealers to take measures such as remodeling dealerships that have hurt dealers’ profits. Manufacturer Harley-Davidson reported better-than-expected quarterly earnings in Q1 2024 and announced plans to cut motorcycle shipments in the second half of the year to align better with retail sales, according to a Harley spokesman. The spokesman said that the company has suspended facility upgrade requirements for dealers in 2025.
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