Motorcycle Dealers NAICS 441227

Oct 28, 2025 - Cautious Consumer Environment for Motorcycle Dealers

• Motorcycle dealers may face softer demand as recent confidence and sentiment indexes point to weakened discretionary spending and heightened inflation concerns. In September 2025, the Consumer Confidence Index from the Conference Board fell to 94.2, with job optimism down and inflation expectations high. Buying intentions dropped for cars and travel, while interest in homes and smartphones rose. Confidence declined across most age and income groups, especially among households earning $25,000–$35,000 and over $200,000. The consumer sentiment index held at 55 in October 2025 from the previous month, and was down 22% year-over-year, according to the University of Michigan Surveys of Consumers. Overall, the data signals cautious consumer sentiment, which could dampen spending heading into the holiday season.
• Polaris is selling its majority stake in Indian Motorcycle to private equity firm Carolwood LP, making Indian an independent company in 2026. While Polaris retains a minority interest, the move allows Indian to chart its own strategic path under new CEO Mike Kennedy, a former Harley-Davidson executive. For US motorcycle dealers, Indian's operations are expected to remain stable, with the majority of staff, facilities, and support networks unchanged following the transition. Dealers may see shifts in branding and product strategy, but no expected immediate disruption to sales or service. Polaris acquired the Indian Motorcycle brand in 2011.

• According to a Jalopnik report, an expansion of the Trump administration’s steel and aluminum tariffs to cover more than 400 additional product categories may cause the prices of imported motorcycles to skyrocket. The newly added product codes include selected motorcycles, mopeds, and motorcycle parts. The products face a 50% tariff on their metal content, as of August 18, 2025. One challenge of the expanded tariff is determining what percentage of an item is made with the targeted materials, which increases the compliance burden. One German e-bike maker, Riese & Muller, paused all e-bike shipments to the US in August, citing unpredictable tariffs. The Trump administration has said the tariffs support the revitalization of the American steel and aluminum industries.
• 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.