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
Dec 12, 2024 - Motorcycles Potential Target for Retaliatory Tariffs by UK
- Motorcycles are on a list of American products that the UK may target for retaliatory tariffs if US president-elect Donald Trump moves forward with trade taxes on UK goods, according to Politico. According to the report, UK officials are looking at how to repurpose former European Union measures against the US for immediate deployment in the case of a trade war. American products on the list for retaliatory tariffs used in previous trade wars include Harley Davidson motorcycles, Levi’s jeans, and Jack Daniel’s bourbon. Trump has said he would impose a 10-20% tariff on all foreign imports with a tariff up to 60% on Chinese imports.
- California regulators announced in December 2024 that they would not move forward with a proposed rule that would have mandated that at least 10% of new motorcycles sold by 2028 and 50% by 2035 be electric, according to Politico Pro. The California Air Resources Board announced in December 2024 that it would not proceed with a hearing to consider changes to the state’s motorcycle emission regulations and sales-percentage requirements. According to the board’s statement, “The proposed amendments to on-road motorcycles (ONMC) emission standards and test procedures and adoption of new provisions relating to ONMCs have been withdrawn.” Trade association The Motorcycle Industry Council (MIC) said the sales requirement would have been impossible for most manufacturers to meet based on current sales trends. The Motorcycle Riders Foundation (MRF) said the group was pleased with the board’s decision not to move forward with the plan. According to MRF president Kirk Willard, “It’s nice to see policymakers admit a mistake and withdraw a plan that was flawed from the outset.”
- A new report from the Motorcycle Industry Council (MIC) found a sales decrease of 6.2% for motorcycles and scooters through Q3 of 2024, compared with the same period a year ago, according to PowerSports Business. While all general categories were down year to date, there were certain segments showing improvement. For example, sportbike sales spiked through Q3 and are at their highest levels since 2009 while touring bikes showed a small increase. According to MIC’s Buckner Nesheim, “The motorcycle market has evolved since the pandemic, and we are seeing dynamic shifts across the segments.” Even with the overall sales decline year to date for motorcycles and scooters, sales are still ahead of where the industry was before the pandemic, per the report.
- 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.
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