Off-road vehicles such as side-by-sides and ATVs will guide the pack in 2020 as the powersports market continues to grow, according to a research note Wells Fargo Securities provided to Powersports Finance.
Wells Fargo is “cautiously optimistic” for steady powersports market growth in 2020, due to recent retail momentum, clean channel positioning and constructive consumer fundamentals, Timothy Conder, a senior analyst at Wells Fargo Securities, wrote in the report. Across the board, powersports sales are expected to grow in the low-single-digit percentage, led by off-road vehicles.
Breaking down the numbers by segment, January retail sales for ATVs grew in the mid-single-digit percentage year over year. This marks the first time that ATVs have gained market share since 2014.
Side-by-sides were trending upward in the low-single to mid-single-digit range, with positive momentum spurred by OEM product innovation and new sport segment entrants from Honda and Kawasaki.
On-highway motorcycle retail sales were flat YoY while cruiser sales rose in the high-single-digit percentage. Sport bikes climbed in the mid-single-digit percentage while off-road and dirt bikes spiked double-digit growth YoY.
Wells Fargo forecasts that motorcycles sales will drop in the low-single-digit percentage in 2020, due to competition from the Can-Am Ryker and off-road vehicles. ATVs are expected to remain flat YoY while side-by-sides will grow in the low-single-digit percentage, with Polaris holding share at the top, and Can-Am and Honda gaining share.
