Canada Motorcycles Market was hit by US duties policy in 2025, losing 5.7% at 63.382 units. While all top manufacturers have lost steam, Honda managed to keep the leadership, ahead of Yamaha and Kawasaki, with Harley-Davidson was the major loser.
Economic Outlook
Canada enters 2026 on firmer ground than expected, supported by a resilient consumer and an effective tariff rate among the lowest for U.S. trading partners. After a turbulent 2025 marked by tariff shocks and uneven labor dynamics, Canada’s fundamentals are stabilizing. Consumer spending continues to anchor growth, aided by real wage gains and limited job losses. While unemployment rose earlier in 2025 amid weak hiring for new entrants, late-year momentum signaled resilience.
Fiscal policy will provide a modest tailwind this year through infrastructure and sectoral support, while our expectation of a strong U.S. economy offers an external boost. These dynamics suggest real GDP growth of roughly 1.6% in 2026, and we expect unemployment to trend lower as slower population growth supports higher job-finding rates among younger workers.
Motorcycles Industry Trend and Perspectives
Canadian motorcycles industry is relatively small and very stable around the 70K sales per year (motorcycles+scooters). However, all top manufacturers are operating in the country and recently Indian and Chinese producers are considering to establish local operations.
Following years of stability, in 2025 the market was disrupted by the effect of new US economic strategy, which at the end penalized import of 2-wheelers from US to Canada, resulting in a market decline
Total motorcycles sales have been 63.382, down 5.7%.
Sales of electric vehicles are moderately increasing (+19.1%) while remaining absolutely marginal.
Market Leaders and Performance
The market is usually dominated by Honda and Yamaha, which control over 40% of the market.
In 2025 the market leader was Honda although sales declined in double-digit.
In second place Yamaha lost 6.8% giving the third, Kawasaki, the challenge to narrower the gap, losing just 0.5%.
Harley-Davidson in 4th place lost 9.1%, while KTM in 5th 17.0% and Can-Am in 6th 9.2%.