Motorcycle Manufacturing

First Research, Inc.
October 13, 2014
10 Pages - SKU: FRRS5351831
Countries covered: United States

Motorcycle Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture motorcycles, mopeds, and motor scooters. Major companies include Harley-Davidson and Polaris (both based in the US); BMW (Germany); and Honda, Kawasaki, Suzuki, and Yamaha (all based in Japan).

Revenue for the global motorcycle manufacturing industry is expected to grow more than 7 percent per year, reaching $90 billion by 2016, according to The Freedonia Group. Leading countries for motorcycle manufacturing include China, India, Japan, and the US.

The US motorcycle manufacturing industry includes about 70 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.

COMPETITIVE LANDSCAPE

Personal income and interest rates drive demand. The profitability of individual companies depends on volume and sales of high-margin accessories and add-ons. Large companies enjoy economies of scale in purchasing and in maintaining dealer networks. Small manufacturers compete by offering highly customized products. The US industry is highly concentrated.

Imports account for about two-thirds of the US market. China and Japan are major import sources. About 40 percent of US production is exported. Sales to Belgium, Canada, and Japan represent nearly half of US motorcycle exports.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include street bikes, such as cruisers, sport bikes, standards, and touring motorcycles; off-road cycles designed for dirt and mountain terrain; scooters; and dual sport bikes designed for both road and off-road usage.

Motorcycles are typically produced on assembly lines, similar to how the auto industry makes cars. Parts are received from outside sources...



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