Australian motorcycle market experienced weak consumer demand over the last two years

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Honda CB125R
Honda CB125R

Australian motorcycle market is resilient in 2026. The beginning of the year has shown modest improvement. Despite sharply rising fuel prices, registrations increased 2.8% in the first four months of the year, reaching 25,699 units.

 

Australia Motorcycles Industry Trend and Perspectives

The Australian two-wheeler market remains relatively small and mature, with annual sales historically stable below the 100,000-unit threshold and characterized by limited year-to-year volatility.

Consumer demand weakened over the past two years, leading to consecutive market declines in both 2024 and 2025. Last year, total sales fell 6.1% to 83,861 units, although emerging brands such as CFMOTO and Royal Enfield continued to gain market share. Most segments contracted, with scooters representing the only area of growth—albeit from a very limited base.

The beginning of 2026 has shown modest improvement. Despite sharply rising fuel prices, registrations increased 2.8% in the first four months of the year, reaching 25,699 units.

Higher fuel costs appear to be encouraging a partial shift from cars to motorcycles. However, the electric two-wheeler segment remains marginal, reflecting both the limited popularity of scooters in Australia and the market’s preference for medium- and high-displacement motorcycles, where current EV offerings still lack competitiveness in range, performance, and practicality.

Market Leaders and Performance

Despite the arrival of aggressive Chinese and Indian competitors, the Australian market continues to be dominated by Japanese manufacturers.

Year-to-date 2026:

  • Honda remains market leader, with sales up 3.6%
  • Yamaha follows in second place, gaining 4.2%
  • Kawasaki ranks third but declined 6.5%
  • KTM holds fourth place, up 2.5%
  • Harley-Davidson follows with a solid 8.5% increase