Top trends in 2022
1. The Superbike is Dead, The Light EV Moto is Here.
Tastes change constantly, but 2022 can be seen as the year that finally killed off one classic motorcycle genre, while signalling the birth of a new sales giant.
Two months ago, Suzuki announced that production of the seminal GSX-R 1000 had stopped after 37 years of continuous production of the world's original modern superbike concept.
As a category, the supersport motorcycle has been in steep decline for almost a decade, kept afloat by thanks to small volumes of high profile models from Japanese and European boutique brands. Two months ago, Suzuki announced that production of the seminal GSX-R 1000 had stopped after 37 years of continuous production of the world's original modern superbike concept.
This, together with the death of the former market leading Honda CBR600 and Yamaha R6 a couple of years earlier, mark the final end of the superbike as a meaningful motorcycle market.
Meanwhile, despite many years of false dawns and resistance from establishment players, Asia and Europe bought low to medium power electric commuter motorcycles (not ebikes) in volumes exceeding 10 million units in 2022 to become 17% of total new sales worldwide. Led by the simple promise of low cost of operation, ease of use and incentives, products from Yadea dominate the five largest motorcycle markets in the world, while Vmoto brand SOCO has succeeded in breaking through in Europe.
There are many opinions and nearly as many so-called market projections on the internet, but verified sales data from manufacturers, government and industry reporting agencies paint a clear picture. World markets in both rich and developing nations overwhelmingly want affordable, easy to use motorcycles without combustion engines.
Supersport motorcycles will never go away, but the era when they represented a significant portion of profits and influence on global motorcycle branding and design is over. Like the foot-forward American cruiser, the superbike is returning to a niche product for a dedicated few.
“Within a changing mobility environment, it is a confirmation that citizens continue to positively value two or three-wheeled vehicles, for their convenience in daily personal mobility and small logistics…”
— Manuel Ordonez de Barraicua,
ACEM Communications Manager
2. China Down, Europe Up.
The China motorcycle market loses more than 9%, the biggest fall in 20 years. meanwhile, Europe soars 12% to a 15 year sales record.
2022 was a politically and economically turbulent year, whose effects left there mark on the global motorcycle industry. China, the world's largest powered two wheel market for most of the past two decades saw sales collapse as a consequence of lockdowns and other domestically limiting factors. A growing western antipathy towards "made-in-China" content played a contributing role.
The dramatic growth in Europe, by contrast, was unexpected. Despite higher interest rates and a large-scale armed conflict on the continent, motorcycle sales ballooned to levels not seen since before the 2008 Financial Crisis.
Boutique brands, re-sellers and large OEMs all swelled sales numbers. Mid-capacity adventure bikes and commuter class naked models lead the charge. Electric motorcycles and moped sales hit 160,000 units, representing just over 10% of total new powered two wheelers. Nationally, Italy returned to it's traditional place as the largest powered two-wheel market on the continent.
Chinese markets should rebound if domestic and regional stability returns in 2023. But the key takeaway is that Europe is now the most important luxury motorcycle market in the world, surpassing the United States not only in volume but profitability.
All of which augers a good year ahead on two wheels.
Harley loses ground in a booming luxury motorcycle market
3. Royal Enfield is the New Harley-Davidson.
Harley-Davidson Livewire & Rewire Fail
Seven years, two CEOs and two turnaround plans later, HD cannot arrest the sales slide. Harley has attempted to innovate out of it’s demographic straight jacket, but has struggled to find new markets.
An spinoff of the LIvewire all electric unit launched with a thud, its IPO earning 30% less than projected, and the stock has lost 40% of it’s value since. Livewire motorcycle sales in 2022 barely broke 500 units, with worldwide inventories of unsold 2020 and 2021 units almost doubling that figure.
A Structural Problem
New Harley models such as the Pan America adventure tourer and new Sportser based on an all-new liquid-cooled motor have similarly failed to gain significant market traction after being criticized by brand faithful as “inauthentic”, and by mainstream motorcycle market goers as uncompetitive versus offerings from BMW, Triumph and Ducati.
Harley lost it’s dominant marketshare in the United States in 2022, for the first time in decades. The company needs to decide soon if it intends to compete directly where the majority of consumers are, or scale massively down into a boutique brand like some of its European rivals.
Meteoric Rise, Worldwide
Less than fifteen years ago India’s Royal Enfield was a small regional brand operated as a side gig by a large agricultural conglomerate. Today, RE is one of the fastest growing motorcycle brands in the world, selling over 800,000 premium small motorcycles a year.
Luxury, Style and Affordability
The secret to RE’s success is simple. Leveraging classic brand values and style, the motorcycles are modern, decently equipped and priced well within reach of middle class owners in Western and Indian markets.
The Meteor 350, launched in 2021, arrived like it’s namesake and sold out in some markets. It prompted Honda to create a compact, the first of many. Unlike western heritage styled motorcycle brands such as Harley-Davidson and Triumph, RE understood that a key to mass appeal was to design motorcycles that embody the cool retro vibe while eschewing snobbishness and pretence.
Royal Enfield is now the dominant heritage motorcycle brand worldwide, with their products winning sales from urban hipsters and rural workers alike. Like iconoclasts Vespa or the Honda CB450, these machines are democratizing middle class motorcycling, with Royal Enfield reaping the rewards.
