Motorcycle market: The future brings change

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Ironically, former KTM boss Stefan Pierer predicted some years ago that only a handful of brands would survive in the long term in the motorcycle market. He naturally believed that KTM would be among them, but his risky expansion strategy at all costs led to insolvency and takeover by Bajaj. But which brands might remain in the future?

First, a look at the individual markets. In Europe and the USA, motorcycle sales have shrunk steadily over the past decades, whereas they have grown enormously in Asia. While expensive motorcycles with large displacements dominate the Western markets, millions of small motorcycles and scooters are sold in Asian markets, where manufacturers make their money through sheer volume. Electrification is also starting to take hold here.

The future of motorcycles lies in Asia

Whoever is well-positioned in Asia will likely own the future. The Japanese brands understood this a long time ago and have entered into cooperations with local companies in China, India, Thailand, and other Asian countries, or have established their plants there. They build complete bikes in the respective countries or supply the technology. European and American brands have now recognized the advantages and are producing in India, China, or Thailand.

The Latin American market is also becoming increasingly important. It has grown significantly from 3.7 million powered two-wheelers in 2012 to 5.86 million last year. Brazil represented the largest market there with a record of 2.35 million motorcycles in 2025. Mexico (two million motorcycles) is not even included here because it is counted as part of the North American market. With a plus of 20.6 percent, Latin America was the fastest-growing market worldwide last year.

Japanese heavyweights will remain

The Japanese heavyweights of the motorcycle industry, Honda, Yamaha, Suzuki, and Kawasaki, will certainly survive. Above all, the giant Honda, which sold a record of 20.7 million motorized two-wheelers in 2025, a significant portion of which were scooters in Asia. The other three Japanese brands are also “too big to fail” and are in excellent financial shape.

Yamaha, as the global number two, had a turnover of around 13.8 billion euros in 2025 and made a profit of almost 700 million euros. Suzuki sold over 2.1 million motorcycles in 2024, but makes the lion's share of its revenue from cars and also successfully sells outboard motors. Kawasaki reached 478,125 motorcycles in the same year, but behind Kawasaki Heavy Industries is a huge conglomerate active in shipbuilding, civil engineering, and aerospace technology, among other things.

India has bright prospects

The large Indian manufacturers such as Hero, TVS, Bajaj, and Royal Enfield can also look forward to a bright future, as their home country is the world's largest motorcycle market. 20.7 million powered two-wheelers were sold on the subcontinent last year, an increase of 3.5 percent, and experts predict further growth for India. Market leader Hero sold over six million motorcycles worldwide in 2025, 5.7 million of them in India. TVS and Bajaj also produce several million powered two-wheelers. Even the smallest of the four brands mentioned, Royal Enfield, built 1.1 million motorcycles last year, but compared to its domestic competitors, it produces significantly larger displacements and is therefore also successful in Europe.

China is on the verge of breaking through

China, with 12.6 million powered two-wheelers (2025), is the second-largest motorcycle market in the world, and most of the motorcycles sold there are domestically produced. Chinese manufacturers are now on the verge of conquering Western markets. They have the best prerequisites for this: low production costs, well-trained skilled workers, and a rapid learning curve. Chinese brands show a rapid generational change in motorcycles and offer a wide variety of models. They also like to try out new ideas, such as an eight-cylinder boxer engine. The chances of such projects will remain to be seen.

The Chinese no longer need to copy; they develop their own engines in all displacements, often offer extensive equipment, and the quality is now also largely at a high level. Furthermore, they are now pushing into the high-performance classes. It is currently impossible to say which of the many Chinese brands such as CFMoto, Loncin, QJ Motor, Yadea, and Kove will prevail in the long run. Most likely, some Chinese manufacturers will be among those currently trying to gain a foothold in Europe and North America.

Wobbly candidates

There are some wobbly candidates among the European and American brands. KTM wanted too much and was taken over by Bajaj after its insolvency. Even though the new KTM CEO Gottfried Neumeister tries to appear deliberately optimistic, the decision-making power is not in his hands. Job cuts in Mattighofen since 2024 have been severe, and Rajiv Bajaj, Managing Director of Bajaj, has expressed very critical views on the expensive location of Europe in interviews. A relocation of production to India is not out of the question, especially since smaller KTM models have long been manufactured there.

As far as is known, nothing has been decided in this regard yet, but the probability is high that the model range will be streamlined. A concentration on KTM's core competence, off-road (motocross and sport enduro), where the orange brand is still the market leader, would be sensible. Models in the entry-level and mid-range segments are also likely to be profitable. What will happen to the KTM brands Husqvarna and Gasgas in the long term is open. For now, they will continue to be produced in Mattighofen. However, the consulting firm Boston Consulting already recommended reducing the number of platforms during the insolvency. So far, almost identical models are offered under the three labels KTM, Husqvarna, and Gasgas.

BMW remains stable

On the other hand, BMW Motorrad is doing well. The Bavarian premium brand sold 202,563 motorcycles worldwide in 2025, exceeding the 200,000 unit mark for the fourth consecutive time. The market above 500 cm³ displacement is currently considered to be declining, as price pressure, regulatory requirements, and new or uncertain customs regulations exert enormous pressure on manufacturers. The large Boxer Enduro remains the undisputed bestseller. The “R 1300 GS Adventure” sold 33,570 units last year, and the “R 1300 GS” sold 32,555 units.

Together, they account for about one-third of total production. The most important market for BMW remains the affluent European market, with almost 119,000 motorcycles sold. BMW was able to compensate well for the weakening US motorcycle market. BMW hopes for a strong boost from the new small enduro F 450 GS, which is built by partner TVS in India.