American riders have always taken motorcycle as powerful companion and source of strength. They never considered it a commuter or transportation tool. Heavy-bikes with aggressive looks and hi-tech features enchanted American bike lovers. They never think of using bike for anything other than style and power. They take it as status symbol and source of pride.

American motorcycle industry is at the brink of a new trend. Immense increase in cost of transportation and rising oil prices has created anther niche in the market which was never there. It’s a new wave of economical and utility bike expectancy. It is foreseen that within next few years, American too will have to consider scooter and motorcycles as mode of transport, unlike their historical consideration for bikes.

Manufacturers, sellers and all other people who are directly or indirectly associated with motorcycle industry of America are expecting a shift of motorcycling trends in the country. They are of the view that, soon, American bikers will be switching to scoters or commuter category of bikes and there will be a new niche in automobile industry which never existed before. ASIA has emerged as biggest motorcycle industry of the world and all Asian countries are manufacturing utility and fuel efficient motorcycles. Chinese have captured biggest market share in Asian region by producing reliable yet very cost effective motorcycles. They have not only fulfilled their needs by manufacturing low cost bikes, instead they have shown immense potential in exporting their technologies to other developing countries here motorcycle industry has room for a low cost player in motorcycle production. Chinese are not producing very high-tech bikes in terms of technology and soundness but they are serving low income group by offering them a two wheeler that can fulfill their transport needs. The real challenge which Chinese are facing across the borders in other countries in terms of their motorcycle technology is the service and spare parts network. This one factor takes them on the back-foot and   the old and local player takes mileage.

Cost of production has increased all over the world and high prices have done real damage to motorcycle industry in America. A common citizen of America cannot afford a luxury to buy an expensive two-wheeler for fun and just for him; he has to find-out some way to carry his family along. This is really an alarming scenario for heavy-bike manufacturers all over the world, especially in America, as buyer’s ability and sensibility is reshaping and we are going to deal with more matured buyer of motorcycles, who want real value for money. Getting high price luxury for fun will be no more a choice of everyone. American motorcycle industry should be aware and ready to cater the needs of an emerging niche of utility oriented customers who would consider motorcycle to be more of a transportation mean instead of a luxury item. I can be an opportunity for small scale investors to tap the potential target market by offering something inline with their needs.