Australia 2021. New Rules are Killing Quad Market While 2Ws Are Up 8%

Photo by Baptiste DAVID on Unsplash

Australian Motorcycles market shocked by the new rules on Quad introduced this year, with Honda decision to quite the segment and sales dropped 75%. The two-wheeler segment keeps growing and sales Year to Date September surged 8%.

New Regulations Changing the Quad Market

In 2018, the Australian Competition and Consumer Commission (ACCC) recommended tougher regulations around quad bikes, including a star safety rating system, following hundreds of deaths across Australia — particularly on farms.

Then in 2019, the federal government moved to introduce the new safety regulations, with the first stage coming into effect in October 2020 and the second in October 2021.

It is now illegal to sell a new or second-hand quad bike unless a rollover protection device is fitted. New quad bikes need to meet new stability guidelines and have rollover protection at the point of sale. They also need warning stickers about the degree of slope at which they overturn.

Honda, the market leader until this new regulation, decided to stop the ATV distribution in the country, while others, like Yamaha, Suzuki and Polaris, after having initially announced to step sales, have then decided to go ahead, but with a limited limited line-up.

The industry boomed last year during the first ten months and then dropped down. In the 2021 the registered quad sold in Australia will report a very significant fall – down 74% vs the 2020 -.

Australian Motorcycles Market Trend 2021

As far as data, we must say that we have to collect registrations figures from many different source, as the local association of distributor do not release data for not associated. So we source the single State and then aggregate figures at national level. Not registered vehicles sales are not available and in case of Australia the quota of these “not registered” is relevant including ATV (many for agricultural use) and off-road.

Said this, the 2020 represented a cornerstone in the local motorcycles industry. Although the covid19 spread and economic effect on the country have been marginal, the research for more secure and individual mobility combined with an enhanced environmental respect focus, increased the demand for two wheelers (even electric for the very first time) with surprisingly year end figures.

Indeed in the 2020 new motorcycles, scooter, ATV sales in Australia surged at 116.569 units, the best out of last 8 years, up 22.2% from the previous year and in the 2021 the market kept growing with Year to Date September sales up 8%.

Honda is still market leader with sales up 43%, followed by Yamaha (+3.4%), Kawasaki (+3.4%), KTM (-12.3%), Suzuki (+55%).