Motorcycle Fuel Economy Should Spike Sales

According to the Motorcycle Industry Council, 2004 was the twelfth year in a row for sales growth. My guess is that 2005 will be the thirteenth. Its worth noting that dirt bikes are included in the total sales.

I say that with only logic and anecdotal data, but I think it to be true…

Logic – This is a direct result of higher fuel prices. Large SUV sales have taken a dive, and car-companies can’t make enough hybrids to meet demand. With motorcycles being in the 40mpg range, it only makes sens that more people would either role out their ‘toys’ to commute or look at a motorcycle as alternative transportation. Locally, gas is $2.80 per gallen and getting that extra 10-20mpg adds up some cash fast!

Anecdotal – Of the couple motorcycle bulleting boards that I belong, they are all buzzing with “I started commuting finally”. I am part of this crowd as I recently wrote here. There are also a lot of “New here, just bought a bike for the commute”. In addition, our Proving Ground has had to expand its motorcycle parking to meet the (new) parking requirements. I know a couple of guys that I work with alone that bought a motorcycle simply for the commute.

Heh – even though my Master’s degree has an emphasis in marketing, you don’t have to be a genious to realize that the motorcycle companies are missing a golden opportunity with regard to their fuel economy. I have yet to see a V or print ad bragging about 40+ mpg. If you factor in that all of the southern states from the east coast to west can agruably ride year round, its a legitimate sales angle that should be exploited.

This graph found in the Honda Environment Annual Report 2004 pictured to the right shows their fuel economy targets by year. Its unclear whether the goals were set in 1995 or 1999, but they seem to be ahead.

The 2005 motorcycle sales should be out sometime in late January ‘06. I’m very curious to see the numbers and to see if they are able to estimate the purpose for the growth. I have got to believe that fuel prices will be a major contributor. Either that, or I have to quit being such a tight-wad…