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Another trip around the sun, another year full of challenges for the motorcycle industry. It seems that even though public concern over COVID-19 is changing, the road ahead for the motorcycle industry is still facing a lot of uncertainty this year. There are some big questions to face this season, such as:
Kawasaki’s hybrid motorcycle prototype unveiled at EICMA showed a potential path forward for moto-travelers in a world of EV mandates. But, don’t expect an ADV bike version anytime soon. Photo: Kawasaki
How to deal with environmental mandates?
Whether or not motorcyclists want to switch to battery bikes, our leaders are legislating internal combustion out of existence. In the bike-mad UK, sales of new gasoline-powered motorcycles will be banned by 2035. In the EU, we see a similar move.
Here in North America, a lot of petrolheads say the government will take their gasoline from their cold, dead fingers, but they’re not seeing the whole picture. Our leaders don’t need to seize their machines; they just need to drive up the price of gasoline via tax and regulations, and outlaw the sale of new internal combustion engines. This economic pressure means it makes less and less sense for manufacturers to develop expensive new gasoline-powered motorcycles, and when they do, there will often be some sort of emissions-reducing edge. For instance, in coming years, Honda plans to build a larger number of flex fuel bikes that can burn ethanol instead of gasoline, for its customers who can’t or won’t buy an EV due to suitability or affordability.
It’s not just Honda. Yamaha, Kawasaki, Suzuki, BMW, KTM, Ducati, Piaggio Group, Royal Enfield—everyone is trying to figure out how to deal with the upcoming crunch, and the companies that are successful will be the ones who are making the right moves right now. Expect to see a lot of plays in this space in 2023, because 2035 is barely a decade away, and the manufacturers need to figure things out long before then.
The OEMs now have to contend with rising interest rates, higher taxes and inflation for an ever-shrinking pot of customer dollars. How will this play out, particularly at the dealer level? Expect all levels of the industry to battle this issue throughout 2023, as the economy continues to struggle thanks to pandemic, war and stock market woes. Photo: Honda
How to deal with the ongoing global financial implosion?
Motorcycles cost money, and most riders have less cash to go around than they did before 2020. This is true across Europe and North America, as inflation and rising taxes and interest rates chip away at disposable income. So how will the manufacturers keep up sales, when there’s less money to go around?
Suzuki, Honda and KTM are all expanding their parallel twin offerings, which allows them to save some money on middleweight-displacement bikes, preserving some profit margin while still keeping motorcycles at affordable levels for consumers. Honda also brought the Navi mini-moto into North America last year, and in general seems quite interested in developing this line of machines. Even Ducati is acknowledging the problem. In a press release celebrating the company’s record sales numbers in 2022, their VP of global sales said “Although the economic scenario in recent months has certainly worsened, we remain confident about the future thanks to the strength of an expanding sales network and a positive order portfolio, reflecting enthusiasts’ appreciation of the renewed product range.” Will new dealerships and new bikes be enough to bring in much-needed cash? Stay tuned.
The 2023 CFMoto produced KTM 790 Adventure. Photo: KTM
How will customers react to Chinese powersports products?
Last July, we told you “there’s a very good chance your next bike, or the bike after that, will be made in China.” See the whole write-up here.
In the months since, nothing’s really changed our mind. CFMoto, in particular, is looking ready to make a very aggressive play for North American sales, and it’s really strengthened its ties to KTM. In 2023, we will see CFMoto-produced bikes bearing the KTM badge in North America.
However, it’s not our predictions that matter here, it’s you, the public, and your buying power. Will US and Canadian buyers take to Chinese motorcycles and quads the way their Euro and Australian counterparts have? It will be interesting to watch over the course of 2023, and we already see more well-established Japanese/Euro dealers starting to carry Chinese machines these days. At the rate things are going, some consumers may soon have no choice but to buy a Chinese bike, as other options become more expensive or are unavailable due to supply chain issues.
The post Questions For The Moto Industry To Figure Out In 2023 appeared first on Adventure Rider.
