First Quarter Trends and Key Projections in US Powersports Segment
By Darren McCarthy, Senior Vice President – Business Development
The first quarter of 2026 revealed important insights into the U.S. powersports market, based on combined performance reports published by Powersports Business, Motorcycle & Powersports News, Dealer News, publicly traded OEM financial disclosures and Northpoint’s proprietary dealer and industry partner data.
While the 2026 global powersports market represents $43B, the combined North American market share is 46%, representing the dominant market worldwide. The top segment within the market includes UTVs and side-by-sides.
Some Key Industry Trends
• The fastest growing powertrain segment is the Electric Hybrid market, up 13.3%. While EV’s represent less than 2% of the U.S. volume, an upward growth trajectory is anticipated.
• Another interesting finding is the increase in powersport product rentals with growth at 11.98%, reflecting a consumer shift toward more flexible access vs. ownership.
• In 2025, the U.S. motorcycle market was down for the second year by 5.3%, with 407,311 units sold.
• Tariffs no doubt factored into the overall sales decline, with 25% levied on imported motorcycles; 50% on steel/aluminum; with some metals triggering 200% in increased rates. A few OEMS such as Kawasaki and Harley Davidson added surcharges to their pricing to compensate for additional costs.
• On the retail front, 44% of dealers reported excess inventory and profit margin loss on aged inventory units. In response to inventory challenges, OEMs including BRP, Polaris and Harley reduced manufacturing production and shipments.
• North American OEMs are in various modes of operation, with some struggling, others restructuring or in reset gear. There are a few bright spots, with Honda remaining strong and in the driver’s seat; Kawasaki reporting U.S. sales up 12.7% and Indian motorcycle sales up 4.9%.
• Dealer consolidation continues, with multi-store groups absorbing struggling independents.
• With feds holding higher rates for longer periods, consumer financing has declined.
• There is notable increase in Chinese OEM activity including the likes of CFMoto, Kove, Voge, all positioned at significantly lower price points when compared to rival mid-tier brands.
Key Takeaways
• First, we continue to promote and encourage inventory reduction measures as dealers with aged inventory face compounding losses.
• Based on used inventory marketability and pre-owned demand, we believe used unit floorplan programs can help move the needle.
• As the EV market segment continues to evolve, dealers should invest in training and education to capture this important growth market. Demo units should be considered to create consumer buzz and sales interest.
Another factor in the overall powersports conversation: Northpoint continues to expand its market share in the rapidly expanding electric golf cart market which represents great opportunities ahead. However, we are doing our due diligence and keeping a close eye on current investigations and legal measures being implemented by the U.S. Customs and Border Protection agency to combat anti-dumping claims.
In closing, while it’s certainly been a challenging market and economy for those engaged in the powersports segment, your team at Northpoint is here to support our valued partners as we work together and throttle forward ahead!
