MarketLine Blog

Motorcycle manufacturing shifting to low-cost production areas

Recent economic difficulties have had an impact on motorcycle manufacturers in some parts of the world, particularly Western Europe and some countries in Asia. However, other areas such as the US and India are an exception to this. India in particular is seeing huge growth in motorcycle manufacturing, perhaps indicative of the inclination of companies to locate their manufacturing facilities in low-cost production areas.

The global motorcycle manufacturing industry grew by 3.3% in 2013, to reach a value of $61.5bn representing a compound annual growth rate of 5.8% for the period spanning 2009-2013.

Europe and North America experienced an overall decline in industry value in 2013. The decline in North America was driven by the Mexican industry, which saw a decline in production volume of over 20% in 2013. 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.

Manufacturers facing pressures in Western industries are continuing 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.

For a more detailed look at the motorcycle manufacturing industry, take a look at the industry profiles available here:

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