Sales are expected to rev up over the next five years, backed by higher disposable incomes and fuel prices
Melbourne, Australia (PRWEB) July 04, 2012
The Motorcycle Dealing industry was cruising until the global financial crisis halted revenue growth. Demand for motorcycles suffered as households became pessimistic about the future and stopped spending money on unessential items. Initially, demand for scooters also dropped due to a fall in petrol prices, which hindered the commuter market and affected the shift from cars to cheaper modes of transportation. However, this trend has since reversed. All-terrain vehicles (ATVs) have been resilient as farmers' incomes have risen due to easing drought conditions. Demand for farm equipment (including ATVs) has also been supported by a business tax break from the government. Sales of on-road and off-road bikes have been dismal. According to IBISWorld industry analyst Aries Nuguid, “Industry revenue is estimated to decline by an annualised 1.9% over the five years through 2011-12 to reach $3.57 billion”. However, the industry is expected to make a pronounced revenue recovery of 2.2% in 2011-12.
Sales are expected to rev up over the next five years, backed by higher disposable incomes and fuel prices. Motorists will shift to more fuel-efficient commuting options such as motorcycles due to high fuel prices. “However, motorcycle dealers will face tougher competition from the Car Retailing industry, as it will also provide fuel-efficient and environmentally friendly vehicles to address high fuel prices”, Nuguid adds. Industry revenue is forecast to rise over the next five years through 2016-17.
The Motorcycle Dealing industry is characterised by a low level of market share concentration. There are a large number of small dealerships in the industry, and these small dealerships make up a high proportion of industry revenue. The industry is highly fragmented, with most dealers only having one establishment. IBISWorld does not expect concentration to change significantly over the next five years, as industry revenue is expected to grow over the period, keeping the entry and exit of working proprietors and smaller franchise dealers relatively constant.
For more information, visit IBISWorld’s Motorcycle Dealing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry retail and service motorcycles as well as parts and accessories for motorcycles. Dealers also assemble imported motorcycle kits. Products sold include road bikes, off-road bikes, all-terrain vehicles (ATVs) and scooters. Both new and used motorcycles are sold within the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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