And, Dorothy You’re Not in Kansas Anymore
In the last fifty years there has been a profound shift in motorcycle sales and motorcycle technologies. None more-so than those manufacturing motorcycle products worldwide. Where throughout the previous forty years, dominance in the industry was principally owned by Japanese, European and American manufacturers, like Honda, BMW, Triumph, Ducati and Harley-Davidson, in the last ten years there has been a rapid growth in both Chinese and Indian motorcycle companies. To the point where some manufacturers are fighting to remain relevant in the marketplace. While sales positions 1, 3 and 7 are still held by Japanese manufacturers, the remaining top ten manufacturers are all now either from China or from India.
What this signals for the future is that with new lower cost motorcycles entering the North American market where labour costs are substantively lower, these manufacturers will likely see significant sales among younger riders who eschew spending large dollars that they can ill afford.
This coming year will see four of these manufacturers from China and India begin dealerships and sales across North America. Considering that every Japanese and European manufacturer, (except Ducati) are now in joint ventures with either Chinese or Indian manufacturers already in 2024, and it’s only a matter of time before we see large number of these machines on our roads.
Most of us are not surprised by the #1 seller of motorcycles, since we have all watched, or in my case, owned at least a couple of their products. But, if you had been told when you were buying your first motorcycle, like I, in 1973, that the following companies and sales figures would be fact in 2023, you would have no doubt been surprised.
#1 Is still Honda, which is amazing. Its dominance is so complete within the motorcycle industry that it accounts for about 30% of all motorcycles sold on this planet in over 92 countries where 2-wheel registrations are required. Last year Honda sold 18.4 million motorcycles, up 4.3% or 700,000 more motorcycles than the year before.
#2 is Hero Motors. While not a household name in North America, that is likely to change in the coming years. Last year Hero Motor sold 5.6 million motorcycles, up 5.4% from 2022. Hero Motors is from India, and is quickly making inroads into the international market. As the largest manufacturer of motorcycles in India, with its massive population and growing concerns about air pollution and greenhouse gases, Hero, whose sales fell the year before, regained its position as the second largest manufacturer in 2023.
#3 is Yamaha of Japan. Like Honda, Yamaha’s success is no surprise as the company has been producing motorcycles since 1955. However in the global market, Yamaha’s share has shrunk since 2022 to 7.5% of the global market having lost 5% of its global share since 2022 to its competitors. With sales of 4.6 million vehicles and an increase of .9% over the previous year, as stated, new manufacturers in the global market are making inroads into historical markets long held by companies like Yamaha.
#4 is another Indian motorcycle manufacturer. Bajaj Auto sold 3.6 million motorcycles in 2023, up 8.7% over 2022, thanks to domestic sales in India. The company started in 1945, but in recent years its motorcycles, all under 200cc, have found huge popularity in Asia and the Indian sub-continent. Known originally for making Rickshaws and 3-wheel vehicles, Bajaj is expanding its international sales with a plan to make larger motorcycles in the future.
#5 is TVS Motor, a company that is making motorcycles that are rapidly gaining international attention. Last year TVS Motor sold 3.4 million motorcycles, with growth of 19.8% over 2022. Now being sold in Europe, and planned for entry into the North American market in 2025, TVS wants to be known for delivering high-quality at reasonable prices. Having recently purchased Norton Motorcycles of England, it has created a new 100 million pound factory in England with plans to have a complete line of Norton and TVS motorcycles for sale when it enters into North America writ large, projected for 2025. Norton’s Commando 961 motorcycles are quickly gaining notoriety and a reputation for exclusivity.
#6 is Yadea. An EV’s specialist company is, like Harley-Davidson, encountering deep problems. In 2023 Yadea’s sales decreased by 49.7% from 2022, an astronomical fall. Yadea, a newer motorcycle company, was started in 2001 in China, where most of its sales still occur. While marketed in 92 countries, Yadea has not seen success (except in scooters) outside of China to any great degree, however the company has an agreement with Porsche on a joint venture to produce new larger electric motorcycles, chiefly for the export market.
#7 is Suzuki, with sales of 1.9 million motorcycles, a rise of 7.1% from 2022. Its latest products have seen wide appeal, particularly in the GSX line of street and sports-touring motorcycles, with the GSX 1000GT and its smaller GSX-8R voted motorcycles of the year respectively in 2023 and 2024. Suzuki has hit a sweet spot in the market with a large number of younger riders and older sport bike riders finding Suzuki is exactly what they want. Suzuki offers a great motorcycle at a reasonable price that is well-built and has longevity.
#8 Haojue, #9 Loncin and #10 Zhongshen, are all Chinese motorcycles not as yet selling in the North American market.
#8 Haojue is making sub 300cc motorcycles, primarily for the domestic Chinese market.
#9 Loncin is making a line of both sport and naked bikes that have had seen great success in China and in Asia, and are looking to expand into Europe and North America.
#10 Zhongshen is a maker of more than a million motorcycles, and now has a 20 year agreement with Norton Motorcycles. To date Zhongshen has focused exclusively on motorcycles less than 250cc, mostly for the domestic Chinese market. It has agreements to manufacture for Harley Davidson and Piaggio in the future, which is interesting considering Harley-Davidson’s woes in relation to producing electrical motorcycles.
Niu and Italika are manufacturers that have designs on increased international sales, which are worth keeping an eye on.
While the motorcycle market will continue to evolve, it’s obvious that some manufacturers will have a hard time surviving the immense challenges posed by changes to the purchasing demographic and in relation to what is now popular in North America in particular. Large, heavy, expensive, slow and archetypal brands are anathema to young, upwardly mobile motorcycle buyers. Increasingly, this group is interested in buying fast, efficient, cost-effective motorcycles for both commuting and touring.
Ciao…
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