Motorcycle Dealers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 6,200 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 11 workers, and generates $4-5 million annually.

    • The motorcycle dealer industry consists of about 6,200 companies, employs 70,600 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
                            Source: Vertical IQ and Inforum

                            Coronavirus Update

                            Apr 29, 2022 - Prime Riding Season Nears
                            • With prime motorcycle-riding season fast approaching, Spring is an opportune time in many parts of the US for dealer service departments to reach out to customers with service reminders and advice for preparing bikes to safely return to the road. Basic maintenance for motorcycles that sat idle during the winter months include oil and filter changes, checking tires and tire pressure, inspecting brake linings for wear and tear, and checking lights and signals, among other checks, writes Brian Sexton in Motorcycle & Powersports News. An email blast with a link to motorcycle safety tips and service department deals is a great way to stay in touch with customers.
                            • Harley-Davidson will debut a second, lower-priced electric motorcycle, called LiveWire Del Mar, in the second quarter of 2022 after launching its first, LiveWire, in 2019. The company is spinning off its electric motorcycle operations into a sub-brand, also called LiveWire. Decarbonization and high gas prices are driving Harley-Davidson and other motorcycle manufacturers to create hybrid and fully-electric motorcycles that rely on engines and batteries similar to those found in hybrid cars and trucks.
                            • Leading motorcycle groups met with Department of Transportation Secretary Buttigieg in February 2022 to discuss priorities of the motorcycle industry and riders. The Motorcycle Industry Council (MIC), the American Motorcyclist Association (AMA), and the Motorcycle Safety Foundation (MSF) joined to voice support for investment in education, awareness, highway infrastructure, and reauthorization of the Motorcyclist Advisory Council (MAC) to advise DOT, National Highway Traffic Safety Administration (NHTSA), and the Federal Highway Administration (FHWA) about ways to improve infrastructure to make roads safer for motorcyclists. The group also wanted to ensure that crash avoidance and autonomous vehicle technology is being developed to recognize and react to motorcycles in addition to automobiles.
                            • With the price of gas at a recent high, demand for electric bikes is expected to grow, according to Dealer News. The electric bike industry is forecast to grow 50% to reach almost $70 billion by 2027. Tucker Powersports, a distributor of tens or thousands of products to dealerships has announced a partnership with FUELL, a maker of e-Bikes. Tucker’s 7,000 active dealerships will gain access to the full lineup of FUELL’s electric bikes for sales.
                            • Motorcycle sales, across all categories — scooters, on-highway, dual purpose, and off-highway — increased 21.8% since 2019, according to early 2022 data from the Motorcycle Industry Council Retail Sales Reporting System, which gathers new-motorcycle and scooter retail sales data from the 14 leading manufacturers and distributors in the US.
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