Melbourne,
Australia - 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 percent 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 percent 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.
