Bike Sales Are Up, But Demand is Down

As the economy starts to recover, bike sales are expected to rebound. However, in the short term, the demand will outstrip the supply, which will hamper sales. The industry is likely to struggle for the next year and a half. Once the demand slows down, bike sales will pick up. A recent study by Bicycle Association found that volume bike sales are down 25% compared to pre-pandemic levels. Meanwhile, pedal assisted cycles and services are down 20%.

While bike sales were down last month, sales of scooters are up. The best-selling scooters are the Honda PCX125 and the Yamaha NMAX 125. In addition, adventure bikes are doing well. The BMW R1250GS and Triumph Tiger Sport 660 are the best-selling adventure bikes. The Yamaha MT-07 is another top seller.

The Europeans are expected to buy 10 million bikes a year in 2020, up by 47 percent. This represents four times the EU’s annual production of bikes. Major bike manufacturers have also reported revenue increases. Moreover, the market for e-bikes is growing rapidly. The sales of electric bikes are expected to double over the next year.

A shortage of available bikes in the $5,000 to $15,000 price range is a challenge. The limited supply could lead to cycling enthusiasts switching to powersports or golf. However, the hottest bike category right now is the $4,500 to $6,500 range. Despite the supply issues, triathlon bike sales are on the rise.

While bicycle sales are increasing, retailers are still cautioning consumers about the economy and new product launches. The latest figures from the industry suggest that sales of new bikes in the UK are still far behind the pace of the year before the Covid-19 crisis struck, announcing that many dealers would close their doors. However, May sales were up significantly on the previous month.

In the US, about twenty million bikes are sold annually. Approximately a quarter of these are electric bikes. Despite the limited market share, electric bikes are gaining popularity as commuter vehicles. Electric bikes account for 5% of the global bike market. Most popular in the 1-4kW power range, these bikes are gaining ground on tourers.

While a few retailers reported a drop in sales for November, a similar percentage saw a slight decline in motorcycle sales. Motorcycle dealers and click and collect services were also hit by the drop. Despite the overall drop in sales, there is still a strong demand for new bikes. The demand is resulting in record-high sales in bicycle shops.

While electric-assist bicycles and folding bikes are growing in popularity, the market for traditional bikes is still dominated by imported bicycles. The biggest manufacturers include Dorel, Dynacraft, and Royce Union. There are also mass merchant channels such as Rand and Kent, and the latter import nearly all their bicycles from China.

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