The "New Normal"
The "New Normal"
Small displacement, big sales?
The U.S. motorcycle market peaked in 2005-6, when high home values and easy credit conspired to help drive sales of 1.1 million new bikes. But following the banking crisis and economic meltdown of 2008, that number has fallen precipitously, to 450,000 total sales in 2011—a drop of nearly 60 percent.
It hurts, but there’s light on the horizon. One good sign: The median age of motorcycle owners has started coming down. In 2008, it peaked at 43. A year later, it was 40. And although final figures are not yet available, the Motorcycle Industry Council says it will likely drop again for 2012. “Generation Y, those folks 33 and younger, are coming into their buying years,” explains Tim Buche, MIC president, who adds that Gen Y will likely surpass Baby Boomers in number this year. That’s significant, because the MIC says more than one of every three motorcycle owners in the U.S. is a Boomer, a person born between 1946 and 1964.
This has led to what Buche calls a “market reassessment,” which finds manufacturers building new small-displacement bikes for first-time buyers who have been spurred by today’s reduced insurance costs, readily available financing and relatively expensive gasoline.
Look at the six motorcycles in this issue’s comparison tests to see examples of such bikes. Moreover, it’s no surprise to learn that the best-selling Honda for 2012 was the CBR250R, while the top Kawasaki was the Ninja 250R.
Buche says that, following the 2008 financial debacle, many first-time buyers turned to the used-bike market, which hurt OEMs but actually benefitted aftermarket sellers and service shops. Now, though, as these buyers begin seeking newer, better and more dependable bikes, ones suitable for long-distance trips, Buche says the manufacturers are well prepared with a slew of new bikes at price points that many can afford, which is part of a dedicated effort to increase the overall pool of motorcyclists.
Ten years ago, the entry point for a rider was typically a 600cc sportbike that was outrageously expensive to insure. Now, given lower insurance premiums and pricey fuel, motorcycles have become an even more viable transportation alternative. And the new small-displacement machines are not slugs; they keep up with traffic just fine while providing the fun and recreation we all crave. Although it can be argued that small dual-sport bikes of 10 years ago were pretty basic machines, today’s versions, at 20 paces, look just like what Ryan Dungey and Chad Reed are racing on the track. More importantly, with their fuel injection, improved suspension
and low prices, they’re attracting not just first-time Gen Y members but also a fair share of experienced riders who might simply be looking for some easy, highmpg maneuverability around town.
“The 250s of today offer everything you’d want,” sums up Buche, who describes today’s market as a “new normal” period in which manufacturers have responded to the market by building a variety of bikes, large and small, for riders of all types and incomes.
Andrew Bornhop
