Australia’s motorcycle and off-highway vehicle market closed 2025 with 92,967 units sold, down just 1.3% from 2024’s result. The modest decline reflects broader pressure on discretionary spending while demonstrating market resilience across several key segments.
Off-road motorcycle sales remained essentially flat at 41,190 units, just 12 units above the previous year. Scooter sales increased 3.8% to 4,933 units, while road motorcycle sales declined 3.6% to 33,018 units. The off-highway vehicle segment recorded 13,826 units, down 1.4% compared with 2024.
This report is based on official data released by the Federal Chamber of Automotive Industries (FCAI) covering the full 2025 calendar year across all motorcycle and off-highway vehicle categories.
Segment Overview
Scooters Defy the Downturn
Scooters were the only segment to post positive growth in 2025, reflecting their appeal as practical and affordable urban transport. The 3.8% increase to 4,933 units suggests urban commuters are discovering scooters as cost-effective alternatives to cars, particularly in high-density metropolitan areas where parking, fuel costs, and traffic congestion favour smaller, more manoeuvrable vehicles.
FCAI chief executive Tony Weber emphasised the practical benefits of scooters for urban transportation:
“Road motorcycles and scooters are an efficient and cost-effective means of transportation, especially in high-density metropolitan areas.”
This uptick in scooter sales comes despite broader softening across the rest of the market and reinforces their growing relevance as fuel-efficient, space-saving alternatives in congested cities. The segment’s growth demonstrates that when economic pressures mount, consumers often shift toward more practical, economical transport options rather than abandoning powered two-wheelers entirely.
Off-Highway Vehicles Face Cautious Buyers
The OHV segment, often used in agricultural and land management applications, declined by 1.4% year-on-year to 13,826 units. OHVs made up 14.9% of total motorcycle and powersports sales, a continued indication of market caution around larger capital purchases in the face of tightened household and business budgets.
The segment’s performance reflects mixed demand drivers. Agricultural and property management applications provide baseline demand that remains relatively stable regardless of economic conditions, as farmers and landowners require utility vehicles for ongoing operations. Recreational use, however, faces the same discretionary spending pressures affecting other lifestyle purchases.
Off-Road Motorcycles Hold the Line
Still the largest segment by volume, off-road motorcycles saw a negligible increase of 12 units to 41,190, accounting for 44.3% of overall sales. This essentially flat result suggests the segment has held up well in 2025, maintaining strong consumer interest following several strong years of performance.
The segment’s resilience suggests recreational off-road riding maintained its appeal throughout the year. Whether for weekend trail riding, motocross competition, or agricultural applications, off-road motorcycles proved largely immune to the spending pressures that affected road bikes and off-highway vehicles.
Road Motorcycles Feel the Freeze
Road bikes saw the steepest fall among the major segments, down 3.6% year-on-year to 33,018 units. Representing 35.5% of the total market, the road category has continued to soften as buyers become more selective under ongoing cost-of-living pressures.
The decline likely reflects deferred purchases of premium motorcycles while more affordable commuter options maintained steadier demand. Road motorcycles typically represent significant purchases, with premium models costing as much as new cars. The segment most affected by the decline was likely these higher-priced categories, as buyers delayed non-essential purchases or opted for more affordable alternatives.
Brand Leadership
Yamaha claimed the top-selling brand position for 2025, followed by Honda and Kawasaki. These three Japanese manufacturers have dominated the Australian motorcycle market for decades, offering comprehensive model ranges across all categories from entry-level commuters to premium touring and sports bikes.
The brand ranking reflects each manufacturer’s strength across multiple segments. Yamaha’s diverse lineup spans road bikes, off-road models, scooters, and off-highway vehicles. Honda similarly competes across all categories, while Kawasaki focuses primarily on road and off-road motorcycles.
Market Context and Opportunities
Weber attributed the overall result to continued pressure on discretionary spending affecting Australian households through 2025.
“While total volumes softened slightly, it is encouraging to see resilience in parts of the market, particularly off-road motorcycles and scooters,” Weber said.
The 1.3% overall decline represents relatively minor weakness given the economic environment. Motorcycles compete with numerous other discretionary purchases, from overseas holidays to home renovations, meaning even modest sales declines during economic uncertainty demonstrate underlying market strength.
Weber highlighted the growth potential represented by Australia’s existing licence holders:
“With around 10 per cent of Australians holding a motorcycle licence, there are opportunities to see an increase in motorcycle sales for on and off-road riding.”
Around 10% of Australians hold motorcycle licences, representing a substantial potential market for both new and returning riders. Many licence holders don’t currently own motorcycles, suggesting opportunities for market growth if manufacturers can effectively target this audience with appropriate products and messaging.
Alternative Power and Fuel Trends
For the first time, FCAI released comprehensive data on alternative fuel motorcycles as part of the 2025 reporting. Electric motorcycles and scooters remain a small but growing portion of the Australian market, with urban-focused electric scooters showing the strongest uptake given their suitability for short-range city commuting.
Traditional internal combustion engines continue to dominate across all segments, though manufacturers are increasingly introducing electric options, particularly in the scooter and light motorcycle categories where range limitations matter less. The infrastructure for electric motorcycle charging remains less developed than for electric cars, presenting a barrier to wider adoption.
Looking Ahead to 2026
Weber expressed optimism about new model arrivals and continued manufacturer investment in the Australian market.
“Looking ahead, riders can expect to see a steady flow of new and updated models arriving in showrooms, with manufacturers continuing to invest in innovation, safety and performance to meet the needs of Australian riders,” Weber said.
Several factors could support improved 2026 performance. Economic conditions may stabilise, reducing pressure on discretionary spending. Deferred purchases from 2025 could create pent-up demand. Growing interest in motorcycles and scooters as cost-effective urban transport may drive new buyers into the market.
However, motorcycles remain discretionary purchases for most buyers, making the segment vulnerable to ongoing economic uncertainty. Competition from other leisure spending and continued cost of living pressures could continue affecting sales. Success in 2026 will depend partly on manufacturers offering compelling new models at price points that appeal to budget-conscious buyers.
The relatively modest 1.3% decline in 2025 despite economic headwinds suggests the Australian motorcycle market has maintained its fundamental strength. Off-road motorcycles holding steady, scooters growing, and road bikes declining only modestly all point to a market that weathered 2025’s challenges reasonably well. That resilience, combined with new model arrivals and potential economic improvement, positions the industry for potential recovery in 2026.
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The motorcycle market’s 2025 performance reveals which segments weather economic pressure and which don’t. As manufacturers introduce new models and technology evolves, we’ll continue analysing how riders respond. In the meantime, check out our other market reports to see how spending patterns are shifting across Australia’s recreational and commercial vehicle sectors at the start of a new year.
Retain Media provides this data “as is” for informational purposes only and accepts no liability for decisions made based on this reporting. Users are encouraged to use this data as one of multiple data points in their market analysis.
