Powersports 2023 Year End Market Insights
POWERSPORTS MARKET INDUSTRY OVERVIEW
All segments of the powersports market depreciated noticeably in the second half of 2023, reflecting a more difficult trade environment, tougher finance conditions, and higher supply.
In the motorcycle segment, values for the most recent 10 model years of cruisers averaged 3.6% lower in the November-December period compared to September- October, and 7.9% lower in calendar-year 2023 compared to 2022. Sportbikes averaged 3.6% lower in November- December compared to September-October, and 3.6% lower in full-year 2023 compared to 2022. In the side-by-side segment, the utility segment averaged 4.4% lower in November-December compared to September-October, and 9.6% lower in 2023 compared to 2022. The sport segment averaged 4.7% lower in November-December compared to September-October, and 7.8% lower in 2023 compared to 2022.
The market correction has impacted cruisers and utility side-by-sides more than sportbikes and sport side-by- sides, with the first two segments now bringing less money than anytime in the last three years. Depreciation has clearly set in for sportbikes and sport side-by-sides as well, with sportbikes seeing accelerated depreciation in the second half of 2023, and sport SxS steadily losing value since the spring. Sales activity in early spring 2024 will provide some guidance as to how the year will unfold, and at this time we are forecasting continued depreciation given the increasing headwinds affecting our industry.