A 4-Wheeled ATV is another term for All Terrain Vehicle. It has 4 wheels and is designed to be driven off road. It seats one person, or sometimes two, one in front of the other.

This product information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink , which provides information on engines, and OE Link, a database of equipment manufacturers.

Trends. In 2025, production of ATVs in North America decreased 12%. But production is expected to gain a nominal 1% in 2026. Uncertain economic outlook, rising production costs and the growing popularity of side x side units (utility vehicles) are main reasons for the production decline. 

Manufacturers have discontinued less popular models/variants and are concentrating on bestselling units due to saturation in the market.  ATVs are used in a variety of activities that include recreation, sport and military related needs.

According to investor relations for Yamaha, Polaris Industries and Arctic Cat, consumer discretionary spending is on the rise.  Production is expected to improve as indicated by current economic factors along with the introduction of innovative products and technologies.  Look for an additional increase up to 5-10% by 2035, although gas price increases caused by the war in Iran may affect sales.

No electric/battery powered units were produced until 2026 MY. BRP Mexico has two Outlander electric models it is introducing 2026 MY.    PSR

Carol Turner is Senior Analyst, Global Operations, at Power Systems Research

The IBEX 700 uses a 693 cc two cylinder engine with 67.9 hp. Prices start at R$ 32,990 for the 450 CL-C, R$ 33,990 for the Bobber, R$ 35,990 for the IBEX 450, and R$ 44,990 for the IBEX 700. All models include a three year warranty and fixed price maintenance up to 30,000 km.

Source: Automotive Business.    Read The Article

PSR Analysis. CFMoto’s entry reinforces the expansion of Chinese motorcycle manufacturers in Brazil through local CKD (Completely Knocked Down) assembly, competitive pricing, and a portfolio positioned in mid displacement custom and adventure segments.

The Manaus operation gives the brand industrial and tax structure alignment with the Brazilian two wheel market, while the initial dealer network indicates a controlled market entry. The main challenge will be building brand trust, parts availability, after sales capacity, and residual value perception against established Japanese and European competitors.   PSR

Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research

Simultaneously, KTM’s corporate structure shifted as Stephan Reiff (formerly of BMW Motorrad) officially assumed the role of Chief Commercial Officer on April 1. On the community front, KTM confirmed that the 2026 KTM Europe Adventure Rally in Gubbio, Italy, has reached near-capacity registrations.

These developments signal a move away from the “overproduction” issues of 2025 toward a leaner, premium-focused strategy centered on Austrian-made electric innovation and high-margin “Orange Family” events.

Sources: Bajaj, AutoEvolution, KTM   Read The Article, Read The Article, Read The Article

PSR Analysis.  The stabilization of KTM through Bajaj’s $642.72$ million USD (€550 million) refinancing and the Mattighofen hub expansion is a critical “rescue story” for the European motorcycle industry. By localizing the production of high-performance electric components like the Freeride E’s drivetrain in Austria, KTM is positioning itself to benefit from the EU Industrial Accelerator Act’s “Made in EU” incentives.

For the broader industry, KTM’s aggressive pivot to a “premium-core” strategy—divesting from bicycles and non-core sports cars—highlights a trend of consolidation among European motorcycle manufacturers facing pressure from Asian imports.

The successful registration of the Adventure Rally also underscores the rising importance of “experiential retail”; for players like BMW and Triumph, the message is clear: survival in the 2026 market depends as much on building a gated community of riders as it does on the technical specs of the bikes.

The integration of Indian financial capital with Austrian engineering creates a formidable competitor. KTM now possesses the scale of Bajaj Auto for global sourcing and the high-end R&D capability of Mattighofen for the European premium market. This “hybrid” model allows KTM to weather economic volatility better than it did as a standalone entity in 2024.

As the Freeride E hits dealerships this month, it serves as a laboratory for the next generation of electric street bikes. If KTM can successfully migrate this technology to a “Duke E” or “SMC E” platform by 2027, it will likely dominate the urban European motorcycle segment, particularly as cities tighten noise and emission regulations. For your newsletter, the key takeaway is that KTM has successfully “right-sized” and is now the leading European edge for electric off-road technology.  PSR

Emiliano Marzoli is Manager of European Operations at Power Systems Research

China’s Zhangxue Motorcycles team emerged as a dark horse in the 2026 FIM Super-bike World Championship (WSBK) Portuguese Round last month with its independently developed 820RR-RS race machine clinching back-to-back victories in both World SSP class races, dominating the field by 3.685 seconds.

This triumph marked the first-ever championship title for a Chinese motorcycle brand in this premier competition and also shattered the 29-year monopoly held by European, American, and Japanese manufacturers since the class’s inception in 1997.

Observers noted that this outcome demonstrates the rapid growth and technological breakthroughs of China’s motorcycle industry.

Some industry insiders believe that this breakthrough shattered the long-standing monopoly of European, American, and Japanese brands in this competition, and also signals that China’s motorcycle industry now can compete head-to-head with the world’s premier brands.

Source: CNMO     Read The Article

PSR Analysis. The Zhangxue Motorcycles’ championship victory at the 2026 WSBK Portuguese Round carries a profound impact for China’s motorcycle industry. In the domestic market, this triumph has thoroughly shattered the longstanding “low-end OEM” stereotype, proving the technical credibility of high-end Chinese motorcycles through a commanding 3.685-second victory over century-old marques such as Ducati and Yamaha.

Core technologies reflected in this championship—particularly the independently developed 819cc inline-three engines will drive technical advancement in medium-to-large displacement. Domestic manufacturers now can move from price wars and aim at capturing space in the 300-800cc mid-to-high-end market. Racing success will narrow the technical gap with international brands and attract young talent.

Zhangxue’s victory marks an important inflection point in China’s globalization strategy. The racing achievement provides a key technical endorsement for “Made in China,” significantly lowering barriers in developed markets and enabling Chinese brands to enter high-value markets as “technical competitors” rather than “cost-effective alternatives.”

In Southeast Asia, Latin America, the Middle East and other markets, Chinese manufacturers will be able to establish differentiated advantages through performance credentials, shifting away from low-price strategies. At a deeper level, this signifies global industrial discourse power reconstruction: China is transitioning from “world’s factory” to innovation hub capable of original technology output, resonating with breakthroughs in electric vehicles and humanoid robots to collectively reshape “Made in China’s” global image. China is positioned to become a critical node in global racing-grade supply chains and participate in international standard formulation.

These shifting dynamics may pressure Japanese giants such as Honda and Yamaha, forcing technology transfer or pricing adjustments, while potentially prompting European brands to respond through cooperation or acquisition.

Looking ahead five years, domestic market share for Chinese medium-to-large displacement models is expected to surge from 35% to over 50%, while export structure will shift from predominantly sub-125cc products to having 300-800cc mid-to-high-end products account for over 30%.

Zhangxue’s championship represents a brand victory and signals that “Made in China” has entered a new development stage in global high-end consumer goods markets.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

In 2025, the Vietnamese motorcycle market experienced strong growth, with sales increasing by 14.9% year-on-year to approximately 3.4 million units. This made it the second-largest market in Southeast Asia, after Indonesia. Indonesia maintained its top position as the region’s largest market with 6.55 million units sold, though its growth rate was limited to 0.6%. Meanwhile, the Philippines recorded 2.37 million units (+2.8% year-over-year), Thailand recorded 1.73 million units (+9.8% year-over-year), and Malaysia recorded 613,893 units (+3.5% year-over-year).

In Vietnam, the rapid expansion of electric motorcycles is reshaping the market structure. Alongside domestic companies, Chinese firms are accelerating investment in electric motorcycles, aided by stricter environmental regulations. Hanoi’s plan to restrict internal combustion engine vehicles starting in mid-2026 is further accelerating the shift towards electric vehicles.

Amid intensifying competition, dedicated electric vehicle manufacturers are pressuring established giants. Honda, the previous market leader, experienced a modest 4.6% year-on-year increase in sales volume to 2,245,562 units, maintaining a 66.0% market share.

Meanwhile, VinFast, which is primarily focused on real estate development, experienced explosive growth. Its sales surged fivefold to 406,453 units, capturing a 12% market share and rising to second place. Other electric motorcycle manufacturers also demonstrated strong growth: Taiwan-based Dibao increased sales by 75.0%, China-based Yadea by 61.6%, and local Pega by 60.0%.

Source: VietJo    Read The Article

PSR Analysis: This news suggests that Vietnam’s motorcycle market is transitioning from a phase of mere volume recovery to one of structural transformation. The sales growth of approximately 3.4 million units, which is a 14.9% year-on-year increase, cannot be fully explained by economic recovery factors alone. The expansion of electric motorcycles is likely driving the market upward. In urban areas, overlapping factors such as environmental regulations, fuel prices, and the digital orientation of younger generations are establishing EV models as the new standard.

The entry of Chinese manufacturers intensifies price competition and strengthens their influence over upstream supply chains, such as battery procurement and power electronics. This puts pressure on Japanese and local giants, who have traditionally dominated the gasoline-powered vehicle market. However, Japanese brands still have advantages in sales networks, after-sales service, and brand trust, which limits the potential for rapid short-term shifts in market share.

The focus is shifting from “volume” to “leadership in added value.” As electrification advances, competition will shift from engine performance to battery lifespan, software control, and connectivity. If EVs become mainstream in the Vietnamese market, the country could position itself as a test market for electric motorcycles within the SE Asia. This growth should be viewed less as cyclical recovery and more as an approaching inflection point in the industrial structure. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast, for Power Systems Research

India’s two-wheeler market has re-entered a phase of strong recovery, marking one of the most encouraging periods for the segment in the post-pandemic cycle.

After an extended stretch of muted retail activity—driven by rural income pressure, price inflation, and delayed replacements—the current upswing reflects deeper, broad-based improvements in consumer sentiment. The revival is being powered by a mix of macroeconomic stabilization, rural liquidity improvements, urban premiumization, and targeted OEM strategies.

Source: Times of India    Read The Article

Rural Economy Leads the Revival. The most decisive driver of the two-wheeler rebound is the strengthening of the rural economy. Better crop realizations, improved procurement cycles, and more predictable monsoon patterns across key agricultural regions have supported healthier farm cash flows. Since the 100–125 cc motorcycle segment depends heavily on rural buyers, even moderate improvements in disposable income immediately translate into retail traction.

Local infrastructure spending—roads, irrigation networks, rural housing, and employment-linked programs—has also improved cash availability at the village and small-town level. Two-wheelers typically respond quickly to such income flows due to their affordability and the essential mobility they offer.

In addition, cultural and seasonal triggers—such as the marriage season—have supported demand. Weddings in rural and semi-urban India often involve gifting or upgrading of motorcycles and scooters, adding a layer of volume to an already improving trend.

Urban Markets Add Momentum. Urban markets have reinforced the recovery with their own distinct set of drivers. Premiumization continues to reshape the segment, with strong traction in 150–250 cc motorcycles and feature-rich, connected scooters. Younger customers are increasingly upgrading from basic commuters, supported by a wider range of aspirational models and improved financing options.

Normalization of office commute patterns has further lifted scooter demand in metros and tier-1 cities. With work routines stabilizing and petrol prices staying relatively predictable, scooters have regained relevance as the most efficient short-distance mobility solution. Additionally, the replacement cycle—extended during 2021 to 2023 due to economic uncertainties—is now correcting, adding another layer of organic demand.

OEM Strategy Strengthens Market Response. OEMs have played a significant role in converting positive sentiment into actual sales. After several rounds of steep price hikes in the BS6 transition phase, manufacturers have shifted to more calibrated pricing, which has helped restore affordability. A steady stream of refreshed models—with LED lighting, connectivity features, improved ergonomics, and new colors—has maintained retail excitement without imposing large cost increases.

There is also growing interest in alternative-fuel two-wheelers, particularly CNG variants, and higher-mileage models. Even though adoption is still at an early stage, the narrative around lower running cost options is positively influencing consumer sentiment.

Is the Surge Sustainable? The momentum appears relatively sustainable due to structural improvements in rural liquidity, a large pool of delayed replacement demand, and stable urban commute behavior. OEMs also have a strong product pipeline, which should maintain interest levels through the year.

However, sustainability will depend on key variables: fuel price stability, farm output in the next crop cycle, rainfall patterns, and competitive intensity from the electric scooter segment. Any sharp volatility in these areas could moderate demand.

Conclusion. The recent rebound in India’s two-wheeler market is more than a seasonal spike—it reflects meaningful recovery in both rural and urban consumption drivers. With improving income flows, premiumization gaining ground, and supportive financing conditions, the segment appears well-positioned for a more stable, multi-quarter growth phase.  PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

The program’s key points include:

• A national initiative aiming to popularize 20,000 electric motorcycles in 2025

• The national subsidy is US$ 10.86 million  (16 billion won), which significantly reduces the purchase price when combined with local government subsidies

• Particularly favors battery swap systems (BSS), subsidizing up to 70% of the vehicle price (previously 60%)

• Plans to establish 500 new battery swap stations to develop swap infrastructure

• A separate US$ 3.4 million (5 billion won) will be invested in swap station development

• Subsidies are limited to batteries and stations that comply with national standards (KS specifications)

• A policy mechanism will promote standardization to prevent fragmented specifications among manufacturers

• Additional subsidies will be provided for high-performance models with fast-charging capability (3 kW or higher) and battery condition monitoring

The primary target for adoption is commercial two-wheelers for delivery riders to solve charging wait times through the swap system

The objectives are to reduce noise and exhaust emissions, improve the urban environment, and accelerate the integration of electric motorcycle (EV) infrastructure

Battery-swap electric motorcycles: 1,654 units in 2023, doubling to 3,429 units in 2024. As of 2024, there are 1,872 swap stations nationwide. The plan is to add another 500 stations.

Source: Seoul Shinmum

PSR Analysis: This initiative is more than just a policy to distribute 20,000 electric motorcycles. Rather, it is a comprehensive package that encompasses infrastructure, standards, and demand creation.

The goal is to rapidly establish a “battery-swap EV motorcycle + standardized battery-swap station network” across South Korea. This system aims to advance the electrification of delivery bikes, eliminate charging wait times, standardize fragmented specifications through national regulation, and promote high-performance electric motorcycles. The strategy seeks to drive low-quality, low-cost vehicles out of the market. If sustained, the system will likely create a structure in which those controlling the battery pack, swap station, and subscription model will profit more than manufacturers selling vehicles alone.   PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Meanwhile, the electric motorcycle market is experiencing rapid growth. VinFast dominates the market, with sales surging 354% YOY due to the release of new models, such as dual-battery vehicles. EV motorcycles are gaining traction, primarily in urban areas, and are steadily expanding their market share.

Source: VietBiz

PSR Analysis: This development is supported by Hanoi City’s policy to ban gasoline motorcycles in its central area starting in 2026. Additionally, hundreds of thousands of delivery riders have expressed strong interest in swap-ready electric motorcycles to reduce fuel costs and eliminate charging waiting time.

VinFast’s strength lies in its dual-battery system, which balances range with instant swapping, as well as its ecosystem strategy of providing vehicles, batteries, and swap stations as an integrated package. VinFast is already building a swap network of around 1,000 locations, significantly outpacing competitors. Vietnam is the most EV-penetrated motorcycle market in ASEAN. The model established here is likely to spread to large motorcycle markets, such as Indonesia and the Philippines, in the future. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

60,100 units is the estimate by Power Systems Research of the number of Golf Cars expected to be produced in North America during 2025.

Golf Cars are small, motorized vehicles that transport golfers and their equipment around a golf course. They may also be used as a Neighborhood Electric Vehicle (NEV) to transport people within golfing communities or similar neighborhoods.

This product information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink , which provides information on engines, and OE Link, a database of equipment manufacturers. PSR

For details, download the complete report above.

Carol Turner is Senior Analyst, Global Operations, for Power Systems Research

India’s auto sector delivered a resilient performance in the first half of FY26 (April–September 2025), supported by healthy two-wheeler volumes, steady passenger-vehicle demand, and a modest recovery in commercial vehicles — even as the industry navigated EV market churn and shifting policy tailwinds.

Two-wheelers continued to underpin volume growth: production and domestic sales surged, with about 10,200,000 (1.02 crore) two-wheelers produced/sold in 1H FY26. This strength was driven by durable rural demand, improved affordability, and strong scooter and motorcycle cycles during the pre-festive and monsoon seasons.

Passenger vehicles showed robustness across the board, with roughly 2.05 million units recorded in the six-month period (Apr–Jun ~1.01m; Jul–Sep ~1.04m). OEMs benefited from a combination of steady urban demand, renewed festive spending and a partial easing of supply constraints. Strong export momentum — India recorded a record H1 export tally — also helped OEM plant utilizations.

Three-wheelers and commercial vehicles painted a mixed picture. Three-wheeler volumes recovered to near-pre slowdown levels with an H1 total close to 394,00 (3.94 lakh) units, supporting last-mile mobility and small-goods logistics. Commercial vehicles returned to modest growth — H1 wholesale CVs were roughly 463,000 (4.63 lakh) units — led by light- and medium-commercial segments, while heavy-truck demand remained sensitive to freight rates and fleet replacement cycles. Industry analysts flagged just a low-single digit YoY rise in CVs for H1.

Government-side trends. Government policy moves were a pronounced near-term demand stimulant. The GST rate rationalization (GST 2.0) and select duty adjustments boosted consumer sentiment and helped compress the purchase calculus for several passenger-vehicle segments during the festive window. Simultaneously, continued public capex on roads and logistics corridors lifted LCV/MCV freight activity — supporting CV demand recovery.

OEM-side trends. Manufacturers faced a two-track environment. Legacy incumbents posted healthy volumes and margin recovery aided by exports, while newer EV-first players confronted churn — notable revenue and volume downgrades at some e-two-wheeler startups highlighted the consolidation underway in electrified mobility. Capital discipline, localization of battery supply chains, and model rationalization were recurring OEM responses.

Demand-side analysis. Urban replacement and festival buying propelled personal vehicles (PVs), rural resilience — aided by crop prices and informal credit — kept two-wheelers buoyant, and freight-led restocking lifted LCVs. Inflation normalization and lower financing costs remained important enablers, though affordability pressures persist for entry segments.

Overall assessment. H1 FY26 reflects a mature, segmented recovery — broad volume strength in two-wheelers and passenger cars, selective recovery in CVs, and a realignment in the EV space. The near-term outlook hinges on festive momentum sustaining into Q3, continued export demand, and how quickly OEMs can stabilize EV unit economics while leveraging government incentives and capex-driven freight growth.   PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research