Powersports Equipment Manufacturers NAICS 336999

Jun 27, 2025 - Sales Dip in Q1

• The Q1 2025 report from the Motorcycle Industry Council (MIC) 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 Bill Savino, MIC board member and director of Powersports National Sales at American Honda Motor Co., said he felt the industry is still healthy despite the dip in sales, noting, "While Honda has seen a small dip in two-wheel sales, especially among smaller bikes, our 50th Anniversary Gold Wing and other larger-displacement models are doing quite well, as are our four-wheel powersports models." Major manufacturer Yamaha reported its motorcycle sales were on pace with its forecast in the first quarter, while sales of competition and off-road bike sales remain higher than pre-COVID.
• According to a report in CFO Dive, consumer sentiment, an indicator of discretionary spending, rose in June in large part due to a lull in the tariff war. The final index of consumer sentiment from the University of Michigan grew 15.9% in June 2025 from the previous month, as the Trump administration put some tariffs on hold against major US trade partners. Year over year, the index of consumer sentiment was down 11.3%. An index measuring consumers’ expectations for the future was up 21.9% from the previous month, but was down 16.1% year over year. According to survey director Joanne Hsu, “Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed.” Hsu noted that consumers’ views of business conditions, personal finances, buying conditions for big ticket items, labor markets and stock markets all remain below six months ago.

• Newly imposed tariffs by the Trump administration are expected to bring significant challenges to powersports equipment manufacturers, according to an analysis in PowerSports Business. The US government has imposed a 25% tariff on imported automobiles, which includes motorcycles, off-road vehicles, and components, beginning in April. “Manufacturers relying on global supply chains will face higher production expenses, which are likely to be passed down to dealers and, ultimately, consumers. This escalation in prices could result in decreased sales volumes as consumers reassess their purchasing decisions in light of higher costs,” according to the report.
• The US powersports equipment manufacturers industry is projected to grow at a CAGR of 2.21% between 2025 and 2029, slower than the overall economy's anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The forecast noted that a tighter immigration policy could limit the expansion of the labor supply and job growth for durable goods manufacturing industries. A factor that may limit consumer spending is higher tariffs on consumer goods. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. However, real income could suffer to an extent if average prices rise due to tariff implementation.