Australia Two-Wheeler Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

Market Overview

The Australia two-wheeler market is stable in road bikes and expanding elsewhere. Road motorcycle volumes are flat, but off-road and youth models are growing quickly, scooters are holding up, and electric products are moving from novelty to regulated mainstream.

Three forces are shaping the market: a surge in off-road and kids' bike demand; fuel-price pressure that makes scooters and small motorcycles attractive for commuting; and compliance rules that tighten the definition of a legal e-bike across the major states.

In January 2026 the Federal Chamber of Automotive Industries reported 92,967 deliveries for 2025, in February 2026 New South Wales began e-bike certification, and in July 2026 first-half sales rose 8.2%.

Key Market Trends and Insights

• Off-road boom: Off-road sales rose 21.6% to 20,417 units in the first half of 2026, with trail bikes up 131% and kids' bikes up 32%.
• Honda leadership: Honda Australia sold 21,901 two-wheel motorcycles in 2025, a 19.6% share, led by the CRF110F at 5,310 units.
• E-bike compliance: From 1 February 2026 New South Wales requires certification of e-bikes, batteries and chargers sold in the state, including sales from other states.
• Queensland crackdown: Queensland's 1 July 2026 rules let police impound non-compliant e-bikes and issue a 621 dollar on-the-spot fine, with a 28 February 2027 labelling deadline.

Australia Two-Wheeler Market Size and Forecast

The market is moving from a road-bike-led base towards a broader mix in which youth and trail models, commuter scooters and certified electric products carry more of the growth. Road motorcycles still lead revenue because their average prices are far higher, while off-road and electric segments advance fastest as new riders enter and fuel costs push commuting choices. New South Wales remains the largest base, and Queensland grows quickest as enforcement and rider demand rise together. Compliance rules, rider-age limits and battery safety standards give the outlook a structural, multi-year character, favouring brands with certified ranges, strong dealer coverage and credible entry-level products.

Key Takeaways: Australia Two-Wheeler Market

Compliance Rules Redraw the Product Range

Revenue is set to rise from AUD 1,400.00 million in 2025 to AUD 2,280.45 million in 2035 at a 5.0% CAGR, as certified electric products replace uncertified imports.

E-Bikes and Electric Models Outgrow Petrol Segments

Road motorcycles remain the largest segment, but e-bikes grow at an estimated 9.2% CAGR and electric motorcycles and scooters at 14.6% through 2035, as compliance and fuel costs favour them.

Queensland and New South Wales Set the Enforcement Pace

New South Wales certification from February 2026 and Queensland penalties from July 2026 give buyers and brands the clearest compliance rules in the country.

• NSW certification of e-bikes, batteries and chargers from 1 February 2026
• Queensland on-the-spot fines of 621 dollars from 1 July 2026
• Federal import rules restored to EN 15194 in January 2026

Australia Two-Wheeler Market Report Summary

Key Insight

Youth and trail demand, commuting pressure from fuel costs and tighter e-bike rules shape growth. Electric and pedal-assist products advance fastest while road motorcycles keep the largest revenue base.

Key Trends in the Australia Two-Wheeler Market

The Australia two-wheeler market is being reshaped by rider-age and licence rules, fuel-price pressure on commuters, state certification regimes and national e-bike import standards.

August 2026 - Queensland Adds Age and Licence Rules for E-Bikes

• From 31 August 2026 Queensland requires e-bike riders to be at least 16 and hold a driver licence, with a learner permit sufficing.
• Parents and guardians become liable for fines when under-16s ride, and exemptions for supervised riders were still being developed.
• The change follows the 1 July 2026 start of impounding powers and 621 dollar on-the-spot fines for illegal devices.

April 2026 - Fuel Crisis Lifts Interest in Commuting on Two Wheels

• FCAI chief executive Tony Weber said in April 2026 that road motorcycles and scooters should gain as an alternative form of urban transport.
• He cautioned that first-quarter figures came from a period too early to reflect the Middle East conflict.
• Scooter deliveries already rose 7.8% to 1,431 units in the first quarter, as FCAI-reported road bike volumes fell 3.2%.

February 2026 - New South Wales Starts E-Bike Certification

• From 1 February 2026 e-bikes, batteries and chargers sold in New South Wales must carry certification, including those sold in from other states.
• The rules also cover scooters and hoverboards, with NSW Fair Trading managing certification directly or through accredited private certifiers.
• Existing bikes are not required to be certified, and secondhand sales are not covered.

January 2026 - Federal Rules Restore EN 15194 for E-Bike Imports

• The Commonwealth amended the Australian Design Rules to restore EN 15194 in the e-bike definition, reported by Bicycle Network on 29 January 2026.
• Legal e-bikes must have 250 watts of continuous power, 25 km/h assisted speed and a 6 km/h throttle-only limit.
• The standard bans codes, controller settings or apps that alter limits, and non-compliant shipments may be rejected.

Key Insight

Rules are moving from guidance to enforceable product standards, while fuel costs and youth participation widen the rider base and favour compliant, entry-level and electric models from established brands.

Recent Market Developments in the Australia Two-Wheeler Market

Recent developments, presented from the most recent, show the Australia two-wheeler market moving from flat road volumes towards stronger off-road demand, compliance enforcement and new product launches.

July 2026 - FCAI Reports Stronger First-Half Sales

• FCAI data released in July 2026 showed 46,023 deliveries for January to June, up 8.2% from 42,549 a year earlier.
• Off-road rose 21.6% to 20,417 units, road bikes slipped 0.5% to 16,170, and scooters fell 2.7% to 2,672.
• Figures exclude non-members such as Royal Enfield, CFMOTO, Kymco and Benelli, so the real market is larger.

April 2026 - Royal Enfield Reports Record Global Sales

• Royal Enfield reported 1,238,659 motorcycles sold in the year to March 2026, up 23% and the highest annual total in its history.
• March 2026 volumes reached 112,334, up 11%, with the Hunter 350, Classic 350 and 650cc twins named in coverage.
• The company said it is expanding in Asia-Pacific, which includes Australia, through new dealerships and models.

January 2026 - Honda Confirmed as Number One Two-Wheel Brand

• FCAI released 2025 data on 8 January 2026, showing 92,967 deliveries, down 1.3%, with road bikes down 3.6% to 33,018.
• Honda Australia sold 21,901 two-wheel motorcycles, up 10%, with a 19.6% share and five models in the top ten.
• Honda said 2026 would bring key model updates, new models and wider e-Clutch availability.

November 2025 - NSW Bans Converted E-Bikes from Trains

• From 1 November 2025 converted e-bikes, being pedal bikes fitted with motor kits, were barred from Sydney Trains, NSW TrainLink and Metro services.
• The ban was introduced because of fire risk from lithium-ion batteries on public transport.
• Victoria separately moved to ban charging, switching on and riding electronic transport devices on public transport.

Key Insight

Recent events show stronger youth and off-road sales, a steady road segment and growing scrutiny of electric products, giving firmer evidence on which segments carry the next growth phase.

Australia Two-Wheeler Industry Segmentation

The Expert Market Research’s report on the Australia Two-Wheeler Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Vehicle Type

• Road Motorcycles
• Off-Road and Trail Motorcycles
• Scooters and Mopeds
• E-Bikes (Pedal-Assist)
• Others

Road Motorcycles lead on value because average prices are far higher than other segments, even though unit sales fell 3.6% to 33,018 in 2025 and 0.5% in the first half of 2026. Off-Road and Trail Motorcycles are the volume leader, with 20,417 units in the first half of 2026 and trail bikes up 131%. Scooters and Mopeds are modest but resilient, with 4,933 units in 2025 and Honda's Navi the top seller. E-Bikes (Pedal-Assist) grow fastest at an estimated 9.2% CAGR, as EN 15194 imports in January 2026 and NSW certification from February 2026 move buyers to compliant models.

Market Breakup by Powertrain

• Petrol up to 250cc
• Petrol 251cc to 650cc
• Petrol above 650cc
• Electric Motorcycles and Scooters
• Others

Petrol up to 250cc leads because it includes kids' bikes, trail models and commuter scooters, such as Honda's CRF110F, which sold 5,310 units in 2025. Petrol 251cc to 650cc covers mid-size road and adventure bikes, and CFMOTO's 450MT was priced at AUD 9,990 ride away in January 2026. Petrol above 650cc stays important to touring and premium buyers, with Gold Coast Harley-Davidson named top dealer in February 2026. Electric Motorcycles and Scooters grow fastest at an estimated 14.6% CAGR from a small base, helped by Zero Australia's February 2025 price cuts of up to AUD 5,000 and new compliant models.

Market Breakup by Application

• Recreational and Sport Riding
• Commuting and Urban Mobility
• Agricultural and Utility Use
• Delivery and Commercial Fleets
• Others

Recreational and Sport Riding leads, supported by junior rider growth, with Honda crediting racing success and kids choosing to ride in January 2026. Commuting and Urban Mobility grows fastest at an estimated 7.4% CAGR, after the FCAI said in April 2026 that fuel costs should favour scooters and road motorcycles. Agricultural and Utility Use is steady, as Honda's XR190CT remained the top agricultural model in 2025. Delivery and Commercial Fleets expand with online retail, though Queensland's 31 August 2026 licence and age rules limit who can ride e-bikes for work.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Others (incl. South Australia, Tasmania, ACT and Northern Territory)

New South Wales dominates, anchored by the largest population and a certification regime that began on 1 February 2026, and grows at an estimated 4.7% CAGR. Queensland is fastest at an estimated 6.1%, helped by e-bike enforcement from July 2026, and by Gold Coast Harley-Davidson's second consecutive top dealer award in February 2026. Victoria grows at 4.6% as it restricts electronic transport devices on public transport, and Western Australia at 5.4% on trail and adventure demand. Others, covering South Australia, Tasmania, the ACT and the Northern Territory, grows at 4.9%.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Two-Wheeler Market

Competition combines Japanese volume leaders, European premium makers, Indian and Chinese value brands and specialist importers. Entry barriers include dealer coverage, mid-size model ranges, parts availability, e-bike certification and the ability to price youth models competitively.

Honda Australia

Honda Australia is the local arm of Honda Motor Co., headquartered in Tokyo, and supplies road, off-road, scooter and agricultural motorcycles through a national dealer network. In January 2026 it was confirmed as the top two-wheel brand for 2025 with 21,901 units and a 19.6% share. The CRF110F was Australia's best-selling motorcycle at 5,310 units, and Honda plans wider e-Clutch availability in 2026.

Yamaha Motor Australia

Yamaha Motor Australia is the local arm of Yamaha Motor Co., headquartered in Iwata, Japan, and sells road, off-road, scooter and marine products. FCAI data released in July 2025 showed Yamaha as the largest-selling motorcycle brand for the first half, ahead of Honda, Kawasaki and KTM. In June 2025 it priced the 2026 YZ450F at AUD 15,749 with an ECU lock function in its Power Tuner app.

Royal Enfield

Royal Enfield is Chennai-based and sold through Urban Moto Imports in Australia, a distributor whose brands are excluded from FCAI member figures. In April 2026 it reported 1,238,659 motorcycles sold in the year to March 2026, up 23%. March 2026 sales reached 112,334. Its Hunter 350, Classic 350 and 650cc twins target mid-size buyers in Australia.

CFMOTO

CFMOTO is headquartered in Hangzhou, China, and is distributed in Australia by Mojo Motorcycles. In February 2025 it launched the 800MT-X adventure bike from AUD 14,990 ride away. In January 2026 it released the MY26 450MT in two new colours at AUD 9,990 ride away, described as a top-selling model for two consecutive years, with a three-year factory warranty.

Other players operating in the Australia two-wheeler market include Kawasaki, Suzuki, Harley-Davidson, KTM, and Triumph, alongside Benelli, Kymco, Ducati, Zero and e-bike importers and retailers serving commuter, recreational and delivery riders across Australia.

Key Insight

Competition turns on dealer reach, youth and mid-size ranges, and compliant electric products rather than price alone, favouring established brands that can supply parts and certified models.