World Motorcycles Market

• Publication date: February 2013
• Report size: 429 pages

Global demand to rise 7.2% annually through 2016 The worldwide market for motorcycles, including electrically-powered twowheelers, is forecast to grow 7.2 percent annually to 134.5 million units in 2016, and industry revenues are expected to rise 8.7 percent per year to $90.1 billion. The Asia/Pacific region will continue to dominate worldwide demand, representing 84 percent of all units sold in 2016. The region, which is home to t...

Global demand to rise 7.2% annually through 2016

The worldwide market for motorcycles, including electrically-powered twowheelers, is forecast to grow 7.2 percent annually to 134.5 million units in 2016, and industry revenues are expected to rise 8.7 percent per year to $90.1 billion. The Asia/Pacific region will continue to dominate worldwide demand, representing 84 percent of all units sold in 2016. The region, which is home to the six largest national motorcycle markets, will account for more than four-fifths of all new unit sales between 2011 and 2016. However, it will only be the fourth fastest growing region in percentage terms behind North America, the Africa/Mideast region, and Eastern Europe, much smaller markets that together account for less than onetenth of global demand. China will remain by far the largest national market.

Standards of living in developing nations to fuel demand

World sales of motorcycles will be fueled by rising standards of living in developing nations. There is a strong correlation between average income levels and motorcycle demand up to a certain point. In emerging economies where motorcycles are an attractive alternative to walking, riding a bicycle, or utilizing mass transit, strong growth in motorcycle sales are triggered once certain per capita income thresholds are reached. However, as average incomes increase further and light vehicles become more affordable, markets start to make the transition from motorcycle to automobile dominance.

Demand gains for motorcycles will also be supported by higher petroleum costs due to the superior fuel efficiency these machines provide compared to light vehicles. Furthermore, a rebound from the 2007-2009 recession in developed countries like the US will lead to higher product sales, particularly of medium and heavy motorcycles, as economic conditions become more favorable and consumers begin to purchase these expensive, recreational items again.

ICE motorcycles to remain dominant world market

Internal combustion engine (ICE) motorcycles will continue to dominate the global market. Product sales are projected to rise at a 7.9 percent annual rate through 2016, when they will account for 71 percent of total demand. Light motorcycles will post the greatest growth and remain the single largest ICE product segment in unit terms because they offer a mix of the best attributes of smaller (lower cost) and larger displacement models (more power). ICE motorbikes, scooters, and mopeds will be the second largest and second fastest growing ICE product segment, totalling approximately one-third of all product sales in 2016.

Market gains will be fueled by these products’ low cost and easy maneuverability in congested urban areas. Medium and heavy motorcycles will increase the slowest of all major product types and account for only three percent of 2016 unit sales (although they are much more significant in value terms).

E-bikes, e-cycles to pace gains in Asia/Pacific region

Sales of electric bicycles (e-bikes) and electric motorcycles (e-cycles) are forecast to grow roughly in line with the motorcycle demand as a whole. These products are most popular in the Asia/ Pacific region, and China in particular, which will account for nearly nine-tenths of the 2016 world e-bike and e-cycle sales total. In most other parts of the world, they will remain niche products that make up a relatively small share of motorcycle demand.

Study coverage

This upcoming Freedonia industry study, World Motorcycles, is priced at $6300.
It presents historical demand data (2001, 2006, 2011) plus forecasts for 2016 and 2021 by product, world region and for 23 countries. The study also considers key market environment factors, evaluates company market share, and profiles 34 global competitors.

Global Motorcycle Industry

TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
World Economic Overview 5
Recent Historical Trends 5
World Economic Outlook 7
World Demographic Overview 11
Population 11
Urban Population 14
Households 15
World Personal Income Trends 17
World Bicycle Market Trends 19
World Light Vehicle Overview 21
Production 22
Demand 24
Legal & Regulatory Issues 26
Restrictions on Motorcycle Use 27
Rider Safety 28
Exhaust Emissions 30
Pricing Patterns 32
Technological Trends 34
Internal Combustion Engine Motorcycles 35
Electric Motorcycles 36

III. OVERVIEW 38

General 38
Two Market Models: Developed Versus Emerging 39
Historical Context: Japan in the 1950s 40
Forecast Model Inputs 43
Income Distribution 43
Age & Demographics 45
Climate 46
Safety 47
Other Factors 48
Model Fit & Implementation 49
Regional Overview 52
Demand by Unit 53
Demand by Value 55
Motorcycles in Use 60
Production 62
International Trade 65
Demand by Type 67
Internal Combustion Engine Motorcycles 71
Scooters, Mopeds, & Motorbikes 74
Light Motorcycles 75
Medium/Heavy Motorcycles 76
Electric Motorcycles 77
Bicycles & Mopeds 80
Scooters & Other 81

IV. NORTH AMERICA 83

General 83
Motorcycle Supply & Demand 84
Motorcycle Outlook & Suppliers 87
United States 90
Canada 98
Mexico 104

V. WESTERN EUROPE 110

General 110
Motorcycle Supply & Demand 112
Motorcycle Outlook & Suppliers 114
Germany 117
Italy 123
France 129
Spain 135
United Kingdom 141
Other Western Europe 147

VI. ASIA/PACIFIC 154

General 154
Motorcycle Supply & Demand 156
Motorcycle Outlook & Suppliers 158
China 161
India 169
Indonesia 175
Vietnam 181
Thailand 188
Pakistan 194
Philippines 199
Burma 205
Japan 211
Taiwan 217
Malaysia 224
South Korea 231
Other Asia/Pacific 237

VII. OTHER REGIONS 244

Central & South America 244
General 244
Motorcycle Supply & Demand 245
Motorcycle Outlook & Suppliers 248
Brazil 250
Argentina 256
Other Central & South America 262
Eastern Europe 268
General 268
Motorcycle Supply & Demand 270
Motorcycle Outlook & Suppliers 272
Africa/Mideast 274
General 274
Motorcycle Supply & Demand 276
Motorcycle Outlook & Suppliers 279
Nigeria 281
Other Africa/Mideast 287

VIII. INDUSTRY STRUCTURE 294

General 294
Industry Composition 295
Market Share 297
Competitive Strategies 300
Industry Globalization Trends 302
Research & New Product Development 303
Manufacturing 306
Marketing & Distribution 308
Cooperative Agreements 310
Mergers & Acquisitions 317
Company Profiles 319
Bajaj Auto Limited 320
Bayerische Motoren Werke AG 323
Benelli QJ, see Zhejiang Qianjiang Motorcycle
China Jialing Industrial Company Limited 325
Chongqing Jianshe Motorcycle Company Limited 327
Chongqing Lifan Industry Group Company Limited 329
Chongqing Loncin Industry Group Company Limited 330
Dachangjiang Group Company Limited 331
Daelim Industrial Company Limited 333
Dafra da Amazonia Industria e Comercio de Motocicletas
Limitada 334
Dayun Group Company Limited 335
Ducati Motor Holding SpA 337
Eicher Motors Limited 338
Giant Manufacturing Company Limited 340
Grand River Group, see Dachangjiang Group
Guangzhou Dayang Motorcycle, see Dayun Group
Haojue Suzuki Motorcycle Changzhou, see Dachangjiang
Group and Suzuki Motor
Harley-Davidson Incorporated 342
Hero MotoCorp Limited 345
HICOM-Yamaha Manufacturing Malaysia Sdn Bhd, see
Hong Leong Industries Berhad and Yamaha Motor
Honda Motor Company Limited 346
Hong Leong Industries Berhad 353
Hong Leong Yamaha Motor Sdn Bhd, see Hong Leong
Industries Berhad and Yamaha Motor
Indian Motorcycle, see Polaris Industries
Kawai Motor Industry Guangzhou, see Luoyang Northern
Enterprises Group
Kawasaki Heavy Industries Limited 355
KTM AG 359
Kwang Yang Motor Company Limited 361
Luoyang Northern Enterprises Group Company Limited 363
MV Agusta Motor SpA 365
Peugeot SA 366
Piaggio & Company SpA 368
Polaris Industries Incorporated 372
S&T Motors Company Limited 374
Sanyang Industry Company Limited 375
Shandong Bidewen Power Technology Company Limited 377
Shandong Wuzheng Group Company Limited 378
SMILE FC System, see Suzuki Motor
Suzuki Motor Corporation 379
Suzuki Motorcycle R&D, see Dachangjiang Group and
Suzuki Motor
Triumph Motorcycles Limited 384
TVS Motor Company Limited 385
Wuzheng Electric Vehicle, see Shandong Wuzheng Group
Yamaha Motor Company Limited 387
Yamaha Motor Vietnam, see Hong Leong Industries
Berhad and Yamaha Motor
Zhejiang Qianjiang Motorcycle Company Limited 395
Zongshen Industrial Group Company Limited 397
Other Companies Mentioned in Study 400



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 World Gross Domestic Product by Region 11
2 World Population by Region 13
3 World Urban Population by Region 15
4 World Household by Region 17
5 World Per Capita GDP by Region 19
6 World Bicycle Demand by Region 21
7 World Light Vehicle Production by Region 24
8 World Light Vehicle Demand by Region 26
9 Sales-Weighted Motorcycle Manufacturer Pricing by Region 34

SECTION III -- OVERVIEW

1 World Motorcycle Unit Demand by Region 55
2 Motorcycle Value Demand by Region 57
3 World Motorcycles in Use by Engine Type & Region 61
4 World Motorcycle Production by Region 64
5 World Motorcycle Net Exports by Region 67
6 World Motorcycle Demand by Engine Type 70
7 World Internal Combustion Engine Motorcycle Demand by Type & Region 73
8 World Electric Motorcycle Demand by Type & Region 79

SECTION IV -- NORTH AMERICA

1 North America: Motorcycle Supply & Demand 86
2 North America: Motorcycle Demand by Type 90
3 United States: Motorcycle Supply & Demand 94
4 United States: Motorcycle Demand by Type 97
5 Canada: Motorcycle Supply & Demand 101
6 Canada: Motorcycle Demand by Type 104
7 Mexico: Motorcycle Supply & Demand 107
8 Mexico: Motorcycle Demand by Type 109

SECTION V -- WESTERN EUROPE

1 Western Europe: Motorcycle Supply & Demand 113
2 Western Europe: Motorcycle Demand by Type 117
3 Germany: Motorcycle Supply & Demand 120
4 Germany: Motorcycle Demand by Type 122
5 Italy: Motorcycle Supply & Demand 126
6 Italy: Motorcycle Demand by Type 129
7 France: Motorcycle Supply & Demand 132
8 France: Motorcycle Demand by Type 135
9 Spain: Motorcycle Supply & Demand 138
10 Spain: Motorcycle Demand by Type 141
11 United Kingdom: Motorcycle Supply & Demand 144
12 United Kingdom: Motorcycle Demand by Type 147
13 Other Western Europe: Motorcycle Supply & Demand 150
14 Other Western Europe: Motorcycle Demand by Type 153

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Motorcycle Supply & Demand 157
2 Asia/Pacific: Motorcycle Demand by Type 161
3 China: Motorcycle Supply & Demand 165
4 China: Motorcycle Demand by Type 169
5 India: Motorcycle Supply & Demand 172
6 India: Motorcycle Demand by Type 175
7 Indonesia: Motorcycle Supply & Demand 178
8 Indonesia: Motorcycle Demand by Type 181
9 Vietnam: Motorcycle Supply & Demand 185
10 Vietnam: Motorcycle Demand by Type 188
11 Thailand: Motorcycle Supply & Demand 191
12 Thailand: Motorcycle Demand by Type 194
13 Pakistan: Motorcycle Supply & Demand 197
14 Pakistan: Motorcycle Demand by Type 199
15 Philippines: Motorcycle Supply & Demand 202
16 Philippines: Motorcycle Demand by Type 205
17 Burma: Motorcycle Supply & Demand 208
18 Burma: Motorcycle Demand by Type 210
19 Japan: Motorcycle Supply & Demand 214
20 Japan: Motorcycle Demand by Type 217
21 Taiwan: Motorcycle Supply & Demand 221
22 Taiwan: Motorcycle Demand by Type 224
23 Malaysia: Motorcycle Supply & Demand 227
24 Malaysia: Motorcycle Demand by Type 230
25 South Korea: Motorcycle Supply & Demand 234
26 South Korea: Motorcycle Demand by Type 237
27 Other Asia/Pacific: Motorcycle Supply & Demand 240
28 Other Asia/Pacific: Motorcycle Demand by Type 243

SECTION VII -- OTHER REGIONS

1 Central & South America: Motorcycle Supply & Demand 247
2 Central & South America: Motorcycle Demand by Type 250
3 Brazil: Motorcycle Supply & Demand 253
4 Brazil: Motorcycle Demand by Type 256
5 Argentina: Motorcycle Supply & Demand 259
6 Argentina: Motorcycle Demand by Type 262
7 Other Central & South America: Motorcycle Supply & Demand 265
8 Other Central & South America: Motorcycle Demand by Type 268
9 Eastern Europe: Motorcycle Supply & Demand 271
10 Eastern Europe: Motorcycle Demand by Type 274
11 Africa/Mideast: Motorcycle Supply & Demand 278
12 Africa/Mideast: Motorcycle Demand by Type 281
13 Nigeria: Motorcycle Supply & Demand 284
14 Nigeria: Motorcycle Demand by Type 287
15 Other Africa/Mideast: Motorcycle Supply & Demand 290
16 Other Africa/Mideast: Motorcycle Demand by Type 293

SECTION VIII -- INDUSTRY STRUCTURE

1 Motorcycle Sales by Company, 2011 296
2 Selected Cooperative Agreements 312
3 Selected Acquisitions & Divestitures 318



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Median Age of Population by Region, 2001-2021 13

SECTION III -- OVERVIEW

1 Motorcycle Versus Passenger Car Sales Trends in Japan, 1950-2011 41
2 Ratio of Motorcycle to Passenger Car Sales in Japan, 1950-2011 42
3 Relationship of Per Capita GDP to Relative Motorcycle Sales Dominance in Japan, 1950-1970 43
4 Relationship of Income Distribution to Per Capita GDP, 2011 45
5 Median Age of Populations in Selected Countries, 2011 46
6 US Motorcyclist Traffic Fatalities by Age Group, 2001 & 2010 48
7 Comparison of Per Capita GDP & Motorcycle Sales Dominance 50
8 Typical Motorcycle Market Transition Points for Selected Countries, 2011 51
9 World Motorcycle Demand by Country, 2011 58
10 Change in Motorcycle Demand by Region, 2011-2016 58
11 World Motorcycle Demand: Projected 2011-2016 Annual Rate of Growth 59
12 World Motorcycles in Use by Region, 2011 62
13 World Motorcycle Production by Region, 2011 65
14 World Motorcycle Demand by Engine Type, 2001-2021 70
15 World Internal Combustion Engine Motorcycle Demand by Type, 2001-2021 74
16 World Electric Motorcycle Demand by Type 80

SECTION IV -- NORTH AMERICA

1 North America: Motorcycle Demand by Country, 2011 87

SECTION V -- WESTERN EUROPE

1 Western Europe: Motorcycle Demand by Country, 2011 114

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Motorcycle Demand by Country, 2011 158

SECTION VIII -- INDUSTRY STRUCTURE

1 World Motorcycle Market Share, 2011 298
2 World Motorcycle Industry Breakdown by Units, Revenues, & Profits, 2011 303
3 World Motorcycle Industry Minimum Efficient Scales Analysis, 2011 308