Powersports 2024 Year End Market Insights
POWERSPORTS MARKET INDUSTRY OVERVIEW
The Sportbike segment remains the standout in the Powersports marketplace, with values in the current period comparable to 2022 and not showing seasonal downward movement. Other segments reflect the realities of higher inventories and reduced customer demand.
Looking at motorcycles, values for the most recent 10 model years of cruisers averaged 3.5% lower in the September-October period compared to July-August and 6.1% lower year-over-year. Sportbikes averaged 0.5% higher in September-October compared to July-August, and 5.4% higher year-over-year. In the side-by-side segment, the utility segment averaged 3.6% lower in September-October compared to July-August, and 4.9% lower year-over-year. The sport segment averaged 3.3% lower in September-October compared to July-August, and 4.7% lower year-over-year.
Dealer feedback is not overly positive as the industry continues to contend with sluggish demand and increased inventories. We do not forecast notably changed conditions through the winter months. Finishing the year strong, values in the Sportbike segment for November-December 2024 are still slightly above those for the same period in 2022. Within the other segments of Powersports, however, dealers have reported needing to lure potential buyers with significant rebates and discounts due to elevated new and used inventory.
In terms of percentage change in motorcycles, values for the most recent 10 model years of the Sportbike segment averaged 0.9% lower in the November-December period compared to September-October (edition-over-edition), and 8.7% higher year-over-year. The Cruiser segment followed a more typical depreciation trajectory, were values averaged 3.2% lower edition-over-edition, and 5.6% lower year-over-year.
For the Utility segment of side-by-sides, average values were 2.5% lower edition-over-edition, and 3.1% lower year-over-year. In the Sport segment, edition-over-edition values decreased to a slightly greater extent at 3.2%, while the year-over-year decrease was the same at 3.1%.
Based on feedback we received from dealers and our observation of the market, we anticipate a need for local market pricing adjustments and potential factory rebates. Market conditions are likely to improve as the buying season approaches within the next couple of months.
