The Federal Chamber of Automotive Industries (FCAI) has released its motorcycle and off-highway vehicle (OHV) sales data for the first nine months of 2024, providing key insights into the performance of the market compared to the same period in 2023.
From January to September 2024, a total of 65,399 motorcycles and OHVs were sold, marking a 4.9% decrease compared to the same period last year. The market contraction has slowed slightly in the third quarter, with the overall decline narrowing from 5.6% in the mid-year report. This suggests that while the market is still down, the rate of decline has softened somewhat during Q3 2024.
Overview of Segment Sales
The motorcycle and OHV market consists of four main segments: off road motorcycles, road motorcycles, off-highway vehicles (OHVs), and scooters. Each segment showed a varied response to the ongoing economic pressures affecting Australian consumers.
Off Road Motorcycles
Off road motorcycles represented the largest segment, accounting for 40.6% of total sales with 26,521 units sold. The decline in off road motorcycle sales has eased slightly from 3.8% in the mid-year report to 2.5% at the three-quarter mark of the year. Off road motorcycles now also make up a slightly larger share of total sales, up from 38.2% in mid-year, indicating relative resilience in this segment.
Road Motorcycles
Road motorcycles, the second-largest segment, saw sales decrease by 3.2%, with 25,127 units sold compared to 25,952 units during the same period in 2023. However, this is an improvement over the 5% decrease that was seen mid-year. Road bikes made up 38.4% of total motorcycle sales for the year, which is a slight dip from the 39.0% they comprised mid-year.
Off Highway Vehicles (OHVs)
The OHV segment contributed 15.7% of overall sales, with 10,272 units sold year-to-date. OHVs saw a more positive performance in Q3 compared to the steeper 12.2% decline in the mid-year report, with the overall decline reducing to 8.1%. This indicates a modest recovery or stabilisation in this segment during Q3.
Scooters
The most notable shift occurred in the scooter segment, which saw a sharp deterioration in sales performance during Q3. The decline increased from 1.8% at mid-year to a significant 21.2% by the end of September. This suggests that the affordability and utility that initially cushioned scooter sales have now succumbed to broader economic pressures, especially cost-of-living challenges.
Market Considerations and Outlook
The motorcycle industry has faced several challenges throughout 2024, with the decline in sales attributed largely to the cost-of-living pressures being felt across the Australian economy. FCAI Chief Executive Tony Weber noted that these pressures have undoubtedly impacted consumer spending, leading to a dip in sales across all segments.
However, Mr. Weber also expressed optimism, stating, “We remain hopeful that as the economy improves, the motorcycle market will experience a resurgence in demand.”
Yamaha continues to lead the market as the top-selling brand, followed by Honda, Kawasaki, and KTM, all of which remain strong contenders despite the market downturn.
Industry Resilience Amidst Challenges
While the overall decline in sales highlights the difficulties faced by the industry, the relatively modest declines in the off road and road motorcycle segments suggest that consumer interest remains strong, particularly in these two categories. Off-road riding, in particular, continues to attract a large segment of buyers, indicating that it remains a popular pursuit despite the financial challenges that Australian riders are facing.
On the other hand, the sharp decline in scooter sales is reflective of the reduced demand for smaller, more economical commuting options, likely driven by shifts in work-from-home arrangements and rising costs of living.
Looking Ahead
As the industry navigates these challenges, the motorcycle market is expected to remain in flux for the remainder of 2024. The FCAI remains optimistic that an improvement in economic conditions will drive renewed demand across all segments. We will continue to monitor these developments and provide further updates as we move into the final quarter of the year.
In the meantime, be sure to read our other market reports to stay up to date with the latest in the Australian automotive industry, including our Q3 RV Market Brand Consideration Report, Q3 Motorcycle Market Brand Consideration Report, and Q3 TMA Sales Summary.
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.
