Motorcycle Dealers NAICS 441227

Apr 23, 2025 - Growth Slowdown Forecast

• The US motorcycle dealers industry is projected to grow at a CAGR of 2.49% between 2025 and 2029, slower than the overall economy’s projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and government. A significant portion of household consumption spending on durable goods is devoted to purchases of motor vehicles. A factor that may limit consumer spending is higher tariffs on consumer goods. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation. The forecast said retail spending could soften with the growth of spending on consumer services, but noted that consumers so far have maintained spending on goods even as travel and live entertainment spending has risen.
• According to a report in Web Bike World, motorcycle dealers are preparing for the effects of a turbulent trade environment. The Trump administration imposed a 25% tariff on auto imports in April, in addition to reciprocal tariffs on many countries’ imports, although certain reciprocal tariffs have been paused for 90 days. Tariffs on imports from China, the world’s largest manufacturer of goods, have risen to 145% under the new administration. The report noted that the motorcycle industry is highly globalized, with many components sourced from multiple countries and manufacturers with plants in different locations worldwide. For example, electronic control units are most often designed in Japan and Germany and usually assembled in Mexico, aluminum parts come from China and Mexico, and brake pads come from China and Asia, per a motorcycle component sourcing list in Web Bike World. According to the report, “Overall, we are expecting that higher tariffs on the world’s leading manufacturing power will spike and/or delay production costs, relocate specific production processes, raise bike prices, reduce the amount of bikes available, and potentially harm contribute to wage and/or job losses.” In addition, the tariffs on Chinese goods may kill certain bike brands struggling before the tariff implementation.

• Global sales of motorcycles, scooters, and mopeds rose 2.7% in 2024, reaching a new record of 61.8 million sales, according to a report in MotorCyclesData. The growth marked a recovery of nearly 10 million sales from its 2020 negative peak. Growth was highest in India, Europe, and the Americas while China and the ASEAN (Association of Southeast Asian Nations) experienced a decline. The 20.1% rise of Mexico’s motorcycle market helped North America reach an all-time sales record in 2024. The US and Canada contributed steady sales in 2024. The top motorcycle brands globally in 2024 were Honda (32% market share), Hero Motor, Yamaha, Yadea, and TVS Motor.
• 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, according to a report by Top Speed.