Thinking of Buying a Motorbike Business in Australia? Here Are 3 Vital Questions to Ask

The Australian automotive industry, which includes motorcycles and related retailing, is valued at $183.4 billion in 2025, employing over 319,000 people across 92,800 establishments.

Industry profit margins average 3.9%, generating approximately $7.1 billion in annual profit, and revenue is forecast to grow by 1.5% annually through 2030, reaching $198 billion.

Growth in the motorcycle segment is being driven by a mix of sustainability trends, urban congestion, and rising electric vehicle (EV) uptake. Motorbike sales have benefitted from changing consumer preferences for affordable, fuel-efficient transport and the boom in electric two-wheelers. However, competition remains high due to imports and fluctuating discretionary spending.

1. Is the Business Financially Sustainable and Profitable?

Why It Matters:

Motorbike retailers and service businesses operate in a highly competitive environment, often with modest margins affected by currency movements, import costs, and changes in consumer sentiment.

Sustainability relies on managing stock turnover, after-sales service income, and diversification through accessories or electric models.

What to Check:

• Revenue and margins – Benchmark the business against the 3.9% industry average, noting that dealerships tied to major brands (e.g. Yamaha, Honda, KTM) often achieve higher returns through financing and service programs.

• Cost structure – Purchases represent the largest share of revenue, while wages account for $19.6 billion industrywide (10.7%), reflecting moderate labour costs.

• Supply reliability – The global shortage of semiconductors and shipping delays has affected imports, influencing motorbike availability and pricing.

• Product mix – Evaluate whether the business stocks commuter, touring, or electric models to appeal to evolving buyer segments.

2. How Competitive Is the Business’s Market Position?

Why It Matters:

Australia’s motorcycle retail sector is highly fragmented, with strong import competition and price sensitivity among consumers. Businesses must differentiate through service quality, brand partnerships, and digital presence.

What to Check:

• Market share and location – Over 75% of automotive-related establishments operate in NSW, Victoria, and Queensland, close to major urban riding populations.

• Supplier partnerships – Exclusive distribution agreements with global brands provide stability but may also limit pricing flexibility.

• Aftermarket strength – Accessories, customisation, and servicing provide repeat income that buffers against new bike sales volatility.

• Digital integration – Online listings, virtual showrooms, and parts e-commerce now play a central role in customer acquisition.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters:

Australia’s motorbike market is being reshaped by environmental policies, technology adoption, and evolving transport preferences.

Long-term growth depends on adapting to electric mobility and the shift toward sustainable transport.

What to Check:

• Electric vehicle readiness – EV motorbike sales are rising rapidly, supported by national incentives and the New Vehicle Efficiency Standard introduced in 2025.

• Technological innovation – Features like regenerative braking, GPS connectivity, and digital dashboards are now common selling points.

• Consumer demographics – Younger urban riders and commuters are driving demand for compact, affordable models, while lifestyle segments favour premium and touring bikes.

• Environmental compliance – Ensure suppliers and models comply with Australian Design Rules (ADR) and upcoming emissions requirements.

Ready to Invest in a Thriving Motorbike Business?

With increasing demand for fuel-efficient and electric two-wheelers, Australia’s motorcycle sector offers appealing prospects for buyers.

Businesses that align with sustainability trends, maintain strong supplier relationships, and integrate online and after-sales strategies are best placed for long-term success.

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