MarketLine Blog

Global motorcycle manufacturing declined in 2012 but not in India

Persisting economic difficulties have had an impact on motorcycle manufacturers globally, particularly in Western Europe. An exception to this has been India, where motorcycle manufacturing has continued to grow rapidly despite difficult global economic conditions.

The global motorcycle manufacturing industry declined by 5.8% in 2012, to reach a value of $62.1bn representing a compound annual rate of change of -0.1% for the period spanning 2008-2012.

Europe, Asia-Pacific, North America and North America all experienced a decline in industry value in 2012, with on-going financial difficulties affecting global manufacture. India’s continued dynamic economic development has led to strong growth in demand and has seen strong growth in production volumes, with the country becoming increasingly motorized. Around 13% of motorcycles manufactured in India are exported, with the overwhelming majority accounting for domestic demand.

Indonesia serves as a brilliant example of how much of an impact government policy can have on this industry. The mandatory 25% down payment that consumers have to pay in order to buy a motorcycle on credit, which came into effect midway through 2012, hit motorcycle sales dramatically, in turn negatively impacting production in the country.

Meanwhile, manufacturers facing pressures in Western industries continue to look towards the burgeoning Asia-Pacific region in an attempt to diversify operations. In fact, Harley Davidson, which has experienced pressure in its domestic US market, is looking to expand production in India, in order to take advantage of the dramatic surge in motorcycle sales within the country.

Find this interesting? For more, read our ‘Industry Analysis Reports on Motorcycle Manufacturing’.

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