Exploring the Motorcycle Industry Today with the Latest Data｜Explaining the Latest Trends from Electrification to Used Cars

Introduction: Overview of the Motorcycle Market

Definition and types of motorcycles

There are two main classification methods for motorcycles, according to the Road Trucking Vehicle Law and the Road Traffic Law.

Under the Road Trucking Vehicle Law, motorcycles over 125 cc are included in the category of motor vehicles, while under the Road Traffic Law, motorcycles over 50 cc are treated as “motor vehicles. In addition, the types of driver’s licenses are set according to the categories under the Road Traffic Law.

Classification of motorcycles

Definition and types of electric bikes

The recent trend toward electrification in the automotive industry as a whole has attracted increasing attention.

An electric motorcycle is a motorcycle that runs on electric power to power its motor. Unlike conventional gasoline-powered motorcycles, they do not have engines; instead, they are powered by electricity from a recharged battery.

Electric motorcycles are classified in the same way as gasoline motorcycles and require a license to operate. While gasoline bikes are classified by displacement, electric bikes are classified by output power, specifically by the amount of power they can continue to output in a stable manner, called “rated power.

Classification of Motorcycles and Electric Motorcycles Compared by License

Legal Amendment for Electric Kickboards
Previously, electric kickboards were treated in the same way as motorized bikes and automobiles, and required a license to operate. However, as of July 1, 2023, an amendment to the Road Traffic Law regarding electric kickboards came into effect, defining electric kickboards that meet certain criteria as “specified small motorized bicycles.

This amendment to the law allows anyone 16 years of age or older to operate an electric kickboard that meets the criteria without a license, making the use of electric kickboards more accessible.
When driving, be sure to check the traffic rules and drive safely.

Maximum speed: The vehicle shall not be able to accelerate beyond 20 km/h.
– Speed setting: The maximum speed setting shall not be changeable while the vehicle is moving.
– Transmission: The vehicle shall have an automatic transmission (AT).
– Indicator lights: A maximum speed indicator light (a green light that illuminates or blinks) shall be provided. Indicator lights: The vehicle must be equipped with a maximum speed indicator light (a green light that illuminates or flashes).

Global Motorcycle Market Size

The global motorcycle market has experienced steady growth in recent years, with the market estimated to be worth US$114.36 billion in 2023 and projected to reach US$120.36 billion by 2024. It is further projected to grow to US$201.42 billion by 2032, nearly doubling from current levels. The compound annual growth rate (CAGR) during the forecast period is 6.6%.

Global motorcycle sales in the first half of 2024 totaled 32.7 million units, a significant increase of 5.1 %増となりました。この成長は主にインドが牽引しており、同国の上半期販売は21.5%over the same period last year. Markets in Europe, Latin America, North America, and the Pacific are also expanding, while the Chinese market is shrinking and six of the eight countries in the ASEAN region are experiencing negative growth.

One notable trend is that of the electric motorcycle segment. Initially expected to drive overall industry growth, global sales declined 0.8% in the first half of 2024.

Thus, while the global motorcycle market as a whole continues to grow, there are some trends that vary by region and vehicle type.

Latest Motorcycle Market Trends

The Rise of Electric Motorcycles

Electric Motorcycle Market Status

The electric motorcycle market has experienced significant volatility in recent years. Globally*, sales peaked at 8.92 million units in 2021, followed by consecutive declines in 2022 and 2023. The main reason for this downward trend is the decline in demand in China, the world’s largest market for electric motorcycles.

Market trends vary widely by region. In India, the government’s policy to promote electric vehicles, soaring gasoline prices, and the introduction of new products have provided a tailwind, leading to a 230,000-unit year-on-year increase in sales to 860,000 units in 2023. In other Asian countries such as Thailand and Indonesia, demand for electric motorcycles is also steadily growing, albeit on a smaller scale.

In the European market, various measures have been introduced to promote the spread of electric motorcycles as part of environmental policies. Examples include purchase subsidy programs and tax incentives. In France, Germany, Spain, and other countries, the percentage of electrically powered vehicles was on the rise, but temporarily declined by 2023. However, demand for electric motorcycles may grow in the future due to stricter exhaust gas regulations and tighter restrictions on driving internal combustion engine vehicles in urban areas.

*Based on data from 29 countries.

Advantages and Current Issues of Electric Bikes

While electric bikes are an environmentally friendly mode of transportation, their technology is still in its infancy and has both advantages and disadvantages. Let’s take a closer look at the main features of electric bikes below.

Japanese Motorcycle Market Analysis

Total motorcycle market

Motorcycle sales in 2023 totaled 405,000 units, virtually unchanged from last year. Sales were relatively stable compared to 2022, which showed a decline of about 3% from the previous year.

Among these, the decline in sales of mopeds (vehicles under 50 cc) is particularly noticeable, which is a true reflection of the changes in the Japanese motorcycle market. The number of mopeds shipped in 2023 will be about 90,000, only 3% of the peak.

Amid this trend of declining demand, Honda and Suzuki are considering ending domestic production of mopeds, partly due to stricter exhaust gas regulations after November 2025. This is an unavoidable trend, as it is difficult to develop technologies to comply with the regulations in the midst of a steadily declining trend.

Manufacturers will continue to develop products so that electric motorcycles can meet the future demand for mopeds.

Japan domestic motorcycle sales volume (2021-23)

Importer Manufacturer Share of Motorcycle Market

In fiscal year 2023 (April 2023-March 2024), the Japanese domestic market for imported small motorcycles increased by 2.2% over the previous year to 26,887 newly registered units.

Harley-Davidson continues to dominate the Japanese market for imported small motorcycles, maintaining its market leadership position with 9,979 new registrations in FY2023, up slightly from 9,749 the previous year. BMW followed with 5,742 new registrations, up from 5,510 the previous year, and second only to Harley-Davidson in market share. Triumph, in third place in terms of market share, registered 4,161 new registrations, up significantly from 3,454 the previous year, representing a growth rate of 120.5%.

Maker’s share of new registrations (FY2023)

Used Car Market Trends

In 2023, sales of used light motorcycles totaled 121,026 units, down 3.2% from the previous year, showing a contraction of the market, unlike the new vehicle market, which remained virtually unchanged. Sales of used small motorcycles were also down 5.6% from the previous year at 78,777 units.

During the Corona disaster, the price of used motorcycles soared significantly for a time, affected by delays in the production and delivery of new motorcycles due to difficulties in obtaining semiconductors and disruptions in logistics. Prices have recently shown a gradual slowdown, but it seems necessary to dispel the impression among users that used motorcycles are expensive.

Used Motorcycle Market Trends and Comparison with New Vehicle Market (2021-23)

Changing Consumer Behavior in Japan: The Motorcycle Lifestyle
Motorcycle culture is undergoing a new turning point, with the “home time” focus of the post-2020 Corona disaster, and the popularity of motorcycles as a means of transportation that can maintain social distance in 2021 soaring. Particularly in the used motorcycle market, prices soared, coupled with a shortage of new vehicle supply. This trend will continue until 2023, forming the first upward trend since 2001.

Noteworthy is the emergence of a new lifestyle called “biking,” with an increase in the number of women and young riders who enjoy touring with small groups and sharing photos. Furthermore, the depreciation of the yen has increased demand from overseas buyers, and the motorcycle market is entering an era of diversification and revitalization.

Finally.

We have looked at recent developments in the motorcycle market based on figures. While there have been no significant changes in sales volume, we have seen that the industry as a whole is undergoing a wave of change. A variety of factors are having a dynamic impact on the motorcycle market, ranging from trends in the overall automotive industry to legal changes and changes in consumer lifestyles.

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Turnpoint Consulting can introduce you to such companies. Turnpoint Consulting can introduce you to such companies, so please feel free to contact us if you have any questions about changing jobs in the automotive industry, from market information exchange to selection support.