For the first 6 months of 2009, motorcycle imports into Canada fell by 14.4% to US$329.7 million.
Yet smaller imported motorcycles including mopeds actually experienced a 38.5% gain from the same period in 2008. Smaller motorcycles are those with an engine cylinder capacity of less than 50 cubic centimeters (cc).
Large imported motorcycles over 800 cc showed the steepest decline, down 48% during January to June 2009. This suggested that higher-end and therefore more expensive motorcycles are less in demand due to the recession.
The list below shows the six-month, year-over-year change in motorcycles imported into Canada from all countries grouped by engine cylinder capacity size.
- Smaller motorcycles (under 50cc) … $14.9 million (up 38.5%)
- Motorcycles (50 to 250 cc) … $28.2 million (down 43.2%)
- Motorcycles (250 to 500 cc) … $12.6 million (down 26.4%)
- Motorcycles (500 to 800 cc) … $62 million (down 11.1%)
- Motorcycles (800 cc and over) … $9.8 million (down 48%).
Top Countries Supplying Motorcycles to Canada in 2009
From January to June 2009, the following countries shipped 98.2% of all motorcycles that Canada imported. The United States and Japan accounted for 74.1% of all motorcycles delivered to Canada over that time period.
- United States … US$126.1 million (38.3% of total imported motorcycles) - down 11.1% from first 6 months in 2008)
- Japan … $216 million (35.8%) - down 15.3%
- China … $17.4 million (5.3%) - up 2.4%
- Italy … $15.3 million (4.6%) - down 15.8%
- Thailand … $13.5 million (4.1%) - down 22.6%
- Germany … $13.4 million (4.1%) - down 45.6%
- Taiwan … $8.9 million (2.7%) - up 59.8%
- Austria … $5 million (1.5%) - down 13.6%
- United Kingdom … $3.2 million (1%) - up 33.7%
- Spain … $2.8 million (0.9%) - down 58%
- Brazil … $1.9 million (0.6%) - down 22.8%.
Countries with Increasing Motorbike Exports to Canada
Taiwan and the United Kingdom finished with the highest percentage increases in motorcycle exports to Canada during the first part of 2009. Taiwan is a leading supplier of smaller motorcycles and mopeds, generating 45.4% of Canadian imports for that category. The United Kingdom finished with a 200% boost in sales to Canada of larger motorcycles from 500 to 800 cc.
China had a modest gain of 2.4% in its motorcycle sales to Canada during the first half of 2009. Imported motorcycles from China to Canada are mostly smaller vehicles under 500 cc.
Countries with Decreasing Motorbike Exports to Canada
While Japan and the U.S. are leading suppliers of motorcycles to Canada overall, both industrial countries experienced double-digit percentage losses in motorcycle shipments to Canada so far in 2008.
Spain and Germany had the steepest declines in motorcycle shipments to Canada, down 58% and 45.6% respectively.
Tariff Duties for Motorcycles Imported into Canada
Motorcycles are shipped duty-free into Canada regardless of their country of origin. The Most Favored Nation tariff, which is the catchall for countries not party to a preferential tariff with Canada, requires no tariff.
Below are the customs tariff codes for motorcycles with different engine cylinder capacity.
- 8711.10.00 … tariff code for motorcycles under 50 cc (duty free)
- 8711.20.00 … tariff code for motorcycles from 50 to 250 cc (duty free)
- 8711.30.00 … tariff code for motorcycles from 250 to 500 cc (duty free)
- 8711.40.00 … tariff code for motorcycles from 500 to 800 cc (duty free)
- 8711.50.00 … tariff code for motorcycles 800 cc and over (duty free).
In contrast, Canada’s Most Favored Nation tariff for bicycles is 13%. The General Preferential Tariff for bikes is 8.5%.
Given that no tariff duty advantages exist for any country supplying imported motorcycles to Canada, the increase in sales for smaller motorcycles from Taiwan and larger motorcycles from the U.K. suggests superior competitive advantages for those nations.
For Taiwan, high-quality motorcycles and innovative features make for a winning formula that captures increased motorcycle sales to Canada – even during a severe recession.
Sources: Industry Canada's Trade Data Online, based on Statistics Canada reports as of August 31, 2009 and Canada Border Services Agency's online customs tariff manual.
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