Australia’s motorcycle and off-highway vehicle market opened 2026 with solid growth, according to the Federal Chamber of Automotive Industries (FCAI). Total sales reached 20,624 units for the first quarter, up 7.4% from Q1 2025’s 19,206 units, driven by exceptional performance in the off-road motorcycle segment.
The off-road segment led the charge with remarkable growth, rising 26.7% year-on-year to 8,737 units. Scooters also posted gains, increasing 7.8% to 1,431 units. However, road motorcycles declined 3.2% while off-highway vehicles fell 9.2% compared to the same period in 2025.
This report is based on official quarterly data released by FCAI covering the first quarter of 2026 across all motorcycle and off-highway vehicle categories.
Segment Overview
Off-Road Motorcycles Drive Market Growth
Off-road motorcycles delivered exceptional performance in Q1 2026, recording 8,737 sales, up 26.7% from Q1 2025’s 6,897 units. This represents the highest growth of any segment and accounted for 42.4% of total quarterly sales.
FCAI chief executive Tony Weber attributed the surge to recreational demand, stating ‘The first quarter results show solid growth, primarily due to strong performance in the off-road segment, driven by recreational demand.’
The off-road segment’s strength suggests Australian riders maintained enthusiasm for trail riding, motocross, and recreational off-road activities through the opening months of 2026. Strong summer conditions and sustained interest in outdoor recreation likely contributed to the segment’s exceptional performance.
Scooter Post Modest Growth
Scooters continued their positive trajectory from 2025, posting Q1 sales of 1,431 units, up 7.8% from Q1 2025’s 1,327 units. While modest compared to off-road’s surge, the growth demonstrates sustained urban demand for practical, fuel-efficient transport.
The scooter segment represented 6.9% of total Q1 sales, maintaining its position as the smallest but consistently growing category in the market.
Weber suggested scooter growth may accelerate as geopolitical factors influence transport choices, indicating, ‘These figures are for a period too early to see any impact from conflict in the Middle East and global fuel uncertainty, but an increase in interest in road motorcycles and scooters as an alternative form of urban transport can be expected.’
Road Motorcycles Decline Slightly
Road motorcycles posted Q1 sales of 7,815 units, down 3.2% from Q1 2025’s 8,073 units. The segment represented 37.9% of total quarterly sales, making it the second-largest category behind off-road motorcycles.
The decline continues a pattern observed through much of 2025, where road motorcycle sales faced pressure from discretionary spending constraints. Buyers appear to be deferring purchases of larger, more expensive road bikes while recreational off-road demand remains robust.
The 3.2% decline represents relatively modest weakness given economic headwinds affecting other discretionary purchases, suggesting underlying demand for road motorcycles remains reasonably solid despite the downturn.
Off-Highway Vehicles Show Weakness
In Q1, off-highway vehicles recorded sales of 2,641 units, down 9.2% from Q1 2025′s 2,909 units. This segment, which includes ATVs and side-by-sides used for agricultural, recreational, and utility applications, represented 12.8% of total quarterly sales.
The decline mirrors patterns seen in other utility vehicle markets, where buyers appear cautious about capital expenditures. Agricultural operations facing commodity price pressures and recreational buyers dealing with economic uncertainty likely contributed to the segment’s weakness.
The 9.2% decline places off-highway vehicles as the poorest-performing segment in Q1 2026, though the weakness remains moderate compared to declines seen in other vehicle categories such as trucks.
Market Context and Forward Outlook
Total motorcycle and off-highway vehicle sales of 20,624 units for Q1 2026 represents healthy growth of 7.4% compared to Q1 2025. The result demonstrates market resilience and suggests the sector entered 2026 on solid footing.
However, Weber noted the Q1 figures don’t yet reflect recent global developments, ‘These figures are for a period too early to see any impact from conflict in the Middle East and global fuel uncertainty, but an increase in interest in road motorcycles and scooters as an alternative form of urban transport can be expected.’
The CEO’s comments suggest Q2 2026 may reveal changing demand patterns as rising fuel prices influence transport choices. Road motorcycles and scooters offer significantly better fuel economy than cars, potentially making them more attractive as petrol and diesel prices rise due to Middle East tensions.
If fuel costs remain elevated through 2026, the urban mobility advantages of motorcycles and scooters could drive increased demand, particularly in metropolitan areas where traffic congestion and parking challenges already favour smaller vehicles.
Segment Performance Summary
Motorcycle Q1 Sales 2025-26 Comparison
The first quarter of 2026 delivered encouraging results for the Australian motorcycle and off-highway vehicle market. The off-road segment’s 26.7% surge demonstrates strong recreational demand, while scooter growth indicates sustained urban interest in efficient, practical transport.
Road motorcycle weakness and off-highway vehicle declines prevent the result from being universally positive, but the overall 7.4% market growth represents a solid start to the year. Whether this momentum continues through Q2 will partly depend on how rising fuel costs influence buyer behaviour and whether economic conditions stabilise or deteriorate as the year progresses.
Trust Retain Media for Industry-Leading Insights
We will continue monitoring Australia’s motorcycle and off-highway vehicle market throughout 2026, tracking how geopolitical developments and fuel prices influence buyer preferences and market dynamics. For broader insights into Australia’s automotive landscape, explore our complete range of market analysis and industry reports.
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.
