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Who among us can take a look back and ignore the prodigious rise of dirt bike sales due to the pandemic? For many, it is a dream come true; be it empty runnsitrate or trails full of adventure and lovely enjoyable games that one might have played in another world. A nationwide obsession with off-road riding is easily explained. Yet, in 2025, the picture tells a story that is completely different. Off-highway motorcycles, which used to be a segment of one-third of all U.S. motorcycle sales, nowadays are stagnant and, therefore, quickly falling off.
During the second quarter of 2025 off-highway motorcycle sales continued to slide. They were, in fact, down the ramp. After a 17.7% decrease in the first half of 2024, this year has resulted in more double-digit falls. The off-road motorcycle boom that had to with COVID is gone, and the market is now recalibrating.
What Caused the Off-Road Craze to Hit?
The off-road boom of 2020-2021 was penned in by circumstances that were not common: closed gyms, cancelled trips, and to the outside tendency, hurdles. Motorbikes were the quickest escape from being stuck indoors.
However, this increase was not something long-lasting. In the post-COVID time the zeal to purchase bikes turned off. Families having at least one bike were uninterested in purchasing another one, and the majority of newcomers were attracted to street or dual sport versions.
After struggling to maintain good sales, the dealers are now sitting on long stacks of obsolete goods. What are the effects? The synergies, broken belly, and rebound sales were beset by the drug distributors’ across-the-board pun.
KTM: From Deciding to Lead the Off-Enduro to Decrease in Sales
No brand has close to KTM has gone through in this period of time. The successful time period was not of value for KTM as it was for Honda, not even a little bit. The sales for the brand from the Austrian country dropped by approximately 50%. The brand’s core commitment to the dirt and dual-sport bike niches has become a burden to the company during this down-time.
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Since the owners of two-wheelers are no longer interested in off-road riding, KTM suffered a triple blow:
- The demand for off-road riding is inadequate.
- The retailers are stuck with surplus stock due to overproduction in 2021-2022.
- Japanese competition is tougher and way more affordable.
Not even the best in their ranges: 350 EXC-F and 500 XC-W cannot reach sales, as by far, the recreational users settle for cheaper and less maintenance bikes.
Stock-cut/Bike Glut: Scanty Capitals, Buggy Manufacturers
Manufacturers and dealers were doing everything during the pandemic. The production was in high gear; shipping increased; the showroom was emptied out in record time.
As of June 2025, these dealers are still in the middle of an inventory disaster with a significant amount of unsold inventory. Many of them have even gone on to offer aggressive programs like rebates, low-interest loans, and bundle deals with gear and accessories to gain the attention of the consumers.
This pequeño inventario is forcing prices down and manufacturers are feeling the heat. KTM is yet another firm that is closing production lines to firefight the issue.
For example, the inclusion of family trail bikes which, in turn, are the products that have put up a strong resistance to the current market crisis, which gives this segment of the off-road market a bit of a cosmic ray.
The Honda CRF125F, CRF110F, and the Yamaha TT-R introduction models are always bright in the market and are, thus, face the competition by logging customers. Moreover, these are small and basic, easy-to-ride dirt bikes that coruscate the kids and their families towards the added fun of off-roading.
These motorcycles are on the list due to their unchangeable manner of use and low price. They located mainly to provide newcomers or those who opt for family activities together with their children. Overall, their sales have slipped, but they are still not bad as the high-performance enduro bikes.
Electric Off-Road Motor Bikes: Making There Progress but Still Are Apart
The rise of electric dirt bikes in this off-road sector makes for a true wild card however, they are starting to build a client base but are still a niche brand. Some of them are KTM Freeride E-XC, Sur-Ron, and Cake.
These trail bikes are the quietest and the most environmental ones, they are also praplaned to be the ideal choice for local trail systems where there are strict regulations about noise. They can also appeal to both environmentally conscious people and young riders as they will be used to e-mobility products like e-bikes and scooters.
At the same time, the high cost and the limited lifespan of painful gas mowers, are hurdles to mass incorporation. This is a main constraint in the bike-on-ganja market, which is now going through a lull with the gas-powered motorcycles hitting the rocks.
What Does The Future Hold In The Off-Road Industry?
The current drop in sales can be best described as a market adjustment rather than a market crash. The whole industry was too quick to catch up during the pandemic, and that is why it is now reverting to sensible levels.
Here are a couple of potential predictions for the future:
- Straight-Model Reduction: To maintain the market balance producers are expected to cut SKUs and prioritize the popular models that are constantly being sold.
- More Offers: The dealers will go on with discounts and trade-ins to sell the wrong stuff.
- Product Developments: Fuel injection, weight-watching measures, and youth-tailored devices could reawaken the interest.
- Recreational Focus: The affordable and mid-range model targeted at casual riders is the trump card.
The producers will be seen to put more effort in marketing, setting up training programs, and conducting demo events in order to bring the enthusiasts back.
Experience the Cycle of Boom-and-Bust Lessons
The pandemic-inspired off-road innings were obliged to give the industry a variety of takeaways.
- The right path is to avoid a demand spike that is too short to justify long-term production planning.
- Balanced product portfolio is a must; a single product line focus is detrimental.
- Consumer behavior can change with a tenfold speed thanks to outside factors like public health conditions or economic downturns.
- The fast combiners will manage to recover much quicker, the hidden people who adhere to the past may struggle, the fast combiners will manage to recover much quicker,.
Closing Note
The long period of unbridled growth has made the off-road motorcycle market pull the brakes as the second quarter of 2025 is a time of transition. Absolutely, this is not a bad consequence. Stability is coming back to the segment, buyers are more restrained in their purchases and manufacturers are getting sharper in their strategies.
To true dirt bikers, the prevailing scenario might be migratory. The surplus of bikes on the market would mean lower prices and the transition from selling off loads to selling the quality and longevity makes it a true pleasure.
The rollercoaster has gone, the pandemic is officially over and now the track is ahead, far clearer but just as capable of being remarkable.
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