The Bumpy Ride Continues Following a decrease of 2.7% for 2016 US new motorcycle sales, or 487,100 units, the industry performed even worse during 2017, with a 3.6% decrease to 469,700 units. An aging population and significantly less interest in motorcycles among young adults continue to be the trends having a negative impact on the industry. In addition, young adults have a different view of personal transportation, preferring Uber, etc. According to NADA Guides Powersports Market Insights, during the first 3 quarters of 2018, utility side-by-sides were the leading category of powersports vehicles, with sportbikes displaying some sales strength, but cruisers’ sales generally flat.

The Motorcycle Household 2018 survey data from The Media Audit for three markets in different parts of the US revealed 11.1% of households own a motorcycle among adults 18+ in Denver, which is considerably more than Pittsburgh at 8.4% and Orlando at 7.7%. Not surprisingly, the largest age group in Denver in a household that owns a motorcycle was 25–34, at 22.9%; however, in Pittsburgh and Orlando, the largest age group was 55–64, at 22.2% and 19.2%, respectively. In all three markets, the largest percentage of households that owned a motorcycle had an annual income of $50K–$75K: Denver, 23.4%; Pittsburgh, 21.0%; and Orlando, 21.4%.

Manufacturers and Brands Struggle to Find Another Gear As the world’s largest manufacturer of heavyweight motorcycles, Harley-Davidson’s performance is indicative of the general motorcycle industry. Its total revenues increased 15%, to $1.32 billion, for the quarter ending September 30,2018. Harley had to rely, however, on its international sales for its gains. although worldwide motorcycle sales declined 7.8% during the quarter. US retail sales at the dealer level declined by double-digits during October-November, as well as year-to-date. Polaris’ Q3 2018 results were “good,” with its recreational off-road vehicles providing a significant boost and an 18% increase in international motorcycle sales; however, US sales of Indian motorcycles 900cc and larger declined by more than 10%.

Finding Favor with Female Riders The Motorcycle Industry Council’s 2018 Motorcycle/ATV Owner Survey found 19% of women are now motorcycle owners, compared to 10% during 2009, and female ownership could increase to a 25% share within a few years. According to the survey, female motorcycle owners spend more than men annually for tires, routine repairs, maintenance, replacement parts and accessories and to modify equipment, or $574 and $497, respectively. Utilizing data from The Media Audit for the same three markets as on page 1 of the Profiler, the largest percentage of women in an Orlando household that owned a motorcycle were 35–64, at 51.9%, while women 50+ was the largest in Pittsburgh, at 48.0%.

New Products for New Markets According to an industry analyst, e-motorcycles could increase their share of the motorcycle market from a current 1% to 3 to 5%, as the technology is more likely to appeal to younger adults, since e-motos require less maintenance. Among old-line manufacturers, Harley-Davidson is expected to introduce an e-moto model during 2019, while new manufacturers, such as Zero, Energica and Tarform, are focused on the e-moto market almost exclusively. Harley-Davidson has also embraced the rental market through its strategic alliance with EagleRider, the world’s largest motorcycle and rental company, now available at more than 120 Harley-Davidson dealerships.

Advertising Strategies If you’re not a rental dealer in the Harley- Davidson/EagleRider system, then join and promote this service to create more interest in motorcycling; or determine what’s involved in starting your own rental service.   After researching the local market, determine if there is market share available in the UTV, or side-by-side category, as diversification may be necessary to boost revenues in motorcycles’ shrinking market. To appeal to the increasing number of female riders, especially young women, launch the “Experience More of Life” promotion, offering free rides in conjunction with a local club, especially if there is a women’s club, feature ride apparel in your advertising, etc.

New Media Strategies To counter young adults and women’s concern that motorcycles are difficult and time-consuming to maintain, create a series of shorts videos with sales associates featuring specific models that don’t require as much maintenance. Ask for a few loyal customers (and reward them for their efforts) to create a yearlong video journal of their biking travels/adventures throughout the year, posting short videos of their fun and the destinations they visit and how they kept safe on the road. As the e-moto market continues to grow, create short explainer videos of the newest products in this sub- category and post on social media. Conduct a poll among non-motorcyclists about their potential interest in a e-moto.