Market reports

Australian Motorcycle and OHV Market in 2023: Insights from FCAI’s Latest Report

The Federal Chamber of Automotive Industries (FCAI), Australia’s premier body for the automotive industry, has recently unveiled the sales figures for motorcycles and off-highway vehicles (OHVs) for the year 2023. This report sheds light on the prevailing trends and consumer behaviors in the sector. Here’s an in-depth analysis of the key findings and what they signify for the future of the market.

Overall Market Trend: A Downward Shift

The year 2023 marked a slight downturn in the motorcycle and OHV market in Australia, with total sales reaching 95,980 units, a 3.1% decrease from the previous year. This dip in sales is indicative of broader economic challenges impacting consumer spending, particularly in recreational sectors.

Breaking Down the Segments

  • Off-Road Motorcycles: With sales totalling 40,138 units, this segment experienced a 3.7% decline compared to 2022. The decrease reflects a cautious approach by consumers in spending on recreational activities.

  • Road Motorcycles: This category also witnessed a downturn, with sales amounting to 35,122 units, marking a 3% drop from the previous year. The reduction points to similar economic pressures, such as rising interest rates and decreased borrowing power, which are affecting consumer choices.

  • Scooters on the Rise: Bucking the overall trend, scooter sales surged by 15.4%, totalling 6,135 units. This increase signals a shift in consumer preferences, possibly due to the practical benefits of scooters in urban settings, such as ease of parking, faster commute times and lower operating costs.

  • OHVs: The OHV segment sold 14,585 units, experiencing a 7.8% decrease from 2022. The more significant drop in this category could be attributed to its positioning as a more luxury or discretionary spend.

Economic Influences and Consumer Behaviour

Tony Weber, the Chief Executive of the FCAI, attributed the overall decline in sales to rising interest rates and increased cost of living pressures in Australia. These economic factors have led to tightened finances, with recreational products like motorcycles feeling the most significant impact. The shift towards scooters suggests a practical adaptation by consumers to economic and urban challenges.

Looking Ahead to 2024

The future of the Australian motorcycle and OHV market looks promising with several advancements on the horizon. In 2024, consumers can expect to see developments in technology, enhanced connectivity, and improved safety features. Additionally, the rise of battery electric power points to a greener, more sustainable future. The market is also poised to offer a more diverse range of product choices, catering to varying consumer needs and preferences.

Final Thoughts

The FCAI’s report for 2023 provides a comprehensive overview of the current state of the motorcycle and OHV market in Australia. While the overall decrease in sales highlights the impact of economic pressures, the surge in scooter sales indicates an adaptive shift in consumer preferences. With technological advancements and a focus on sustainability, the market is set to evolve, offering new opportunities and choices to Australian consumers.

Market reports

TIC T-Mark Market Summary 2023: Q4 & Full Year

The latest T-Mark report from the Truck Industry Council (TIC) brings exciting news for the Australian heavy vehicle industry, as 2023 marked a year of remarkable achievements and significant shifts in market dynamics. Here’s an in-depth look at the key findings and trends as outlined in the TIC’s report.

Unprecedented Sales Growth

The Australian truck and heavy van market achieved an all-time high in 2023, with sales totalling 47,757 units. This figure represents an impressive 7.6% increase (3,378 units) over the previous year, surpassing the 2022 benchmark which had already set a high standard for the industry.

Quarterly Highlights: A Consistent Uptrend

The strength of the market was consistent throughout 2023, with the first, second, and fourth quarters each setting new sales records, with sales of 12,305 vehicles in Q4 2023. December 2023 sales were also just one shy of the all-time December sales record of 4,112 that was set in 2022. This sustained growth throughout the year is indicative of the robustness and resilience of the Australian heavy vehicle sector.

Segment-Wise Performance

  • Heavy Duty Trucks Lead the Way: Dominating the market, the Heavy Duty Truck segment saw a substantial 17.4% increase in sales, reaching 17,569 units in 2023. This segment now makes up the largest portion of the market, accounting for 36.8% of total sales, up from 34.8% in the previous year, reflecting a growing preference for larger, more capable vehicles in the industry.

  • Modest Growth in Medium Duty Trucks: The Medium Duty Truck segment experienced modest growth, with a 7.3% increase in sales, totalling 8,004 units. However, this is still significantly lower than its peak in 2007, highlighting a trend away from Medium Duty trucks.

  • Light Duty Trucks Near Record Sales: The Light Duty Truck segment narrowly missed setting a new sales record, with 16,166 units sold, just 1.6% short of the 2022 record. These trucks accounted for 33.6% of total sales, a slight decline from 35.2% in the previous year.

  • Recovery in Light Duty Vans: This segment experienced a rebound, with 6,018 vans sold in 2023, marking a 9.0% increase over the previous year. Despite this growth, the segment’s share of the total market has dipped to 12.6%, down from a peak of 18.1% at the end of 2020.

Market Trends and Future Outlook

The report reveals a clear preference shift from Medium Duty to either Light or Heavy Duty trucks. Despite the record-breaking sales, a major concern highlighted in the report is the ageing Australian truck fleet, which lags behind its counterparts in Europe and North America in terms of modernisation.

Industry Perspectives

Tony McMullan, CEO of TIC, expressed satisfaction with the strong sales performance in 2023, especially given the COVID-19 pandemic’s impact on supply chains. However, he emphasised the need for concerted efforts by the industry and government to address the ageing fleet issue, as this is crucial for enhancing safety, public health, and environmental outcomes.

Final Thoughts

The 2023 T-Mark report underscores a year of robust growth for the Australian heavy vehicle market, setting new records and indicating a shift in market preferences. However, the challenge of an ageing fleet looms large, calling for strategic initiatives to rejuvenate the nation’s trucking infrastructure.