How motorcycles are transforming shopping and the mobility industry in South Africa

The South African motorcycle industry has been a victim of relentless progress in automation and productivity gains in vehicle manufacturing. The essence of automation and technological innovation has enabled the production of higher volumes of the same items in shorter timeframes. This means that small production facilities can no longer compete on a least-cost basis with large plants. As pointed out in South Africa, the local market is too small and fragmented to support local motorcycle assembly, and this is unlikely to change significantly in the near future, though there are some green shoots driven by the adoption of electric motorcycles in the country.

Growth of the delivery economy and motorcycle demand

The adoption of electric motorcycles has also led to some early market entrants manufacturing and assembling three-wheeler vehicles (tuk-tuks) locally, marking a small but significant shift towards domestic production in the light-mobility segment. The rapid growth of e-commerce has increased demand for delivery services, with companies such as Checkers’ Sixty Six, Takealot, and UberEATS driving demand for affordable motorcycle fleets, particularly for short-distance deliveries.

Motorcycle trends and market dynamics

Motorcycle import values and volumes in South Africa have generally moved in tandem, but between 2023 and 2025 the patterns diverged: while total value rose by 13.5%, unit imports surged by 86.1%, with the average cost per bike falling to R15,263 in 2025 from R21,332 in 2016. This, of course, has to do with the sharp rise in cheap motorbikes for delivery purposes, as compared with expensive luxury high end motorbikes.

The increased uncertainty surrounding existing international supply lines has not significantly affected the motorcycle market, as it does not fall into the category of strategic materials and is unlikely to face sudden restrictions. In fact, the motorcycle market has grown over the last decade to 2025, with sales increasing by 14.5% to over 43,000 units.

The recent sustained increase was largely due to a strong revival of the low cylindrical capacity motorcycles on South African roads, with the luxury, high-capacity, high-profit-margin motorcycles remaining a stable but not fast-growing niche market share among wealthy buyers.

Electric motorcycles are emerging as a new growth area

Electric motorcycles remain a small segment but are growing rapidly. Sales increased by approximately 40% in 2025. South Africa is following trends seen in other African markets, such as Kenya, where electric motorcycles are gaining market share due to lower operating costs. A slow but visible expansion of middle-class recreational motorcycling among black professionals and urban households is also emerging in South Africa, especially in Gauteng and other metro areas, which might help grow that niche market.

Local innovation and entrepreneurship in the sector

Other local innovators, such as Fezile Dlamini, founder of Green Scooters, went on a tirade this week, alleging that the IDC rejected him. He has spent R9.5 million from his own pocket over the past eight years to build Green Scooters, which has deployed 70 electric vehicles to blue-chip companies and local SMMEs and has exported to the United Arab Emirates. This demonstrates the talent and potential for small business development in the South African motorcycle industry.

The Who Owns Whom report has an insightful illustration of the current motorcycle business in South Africa, shown here. The more economically sensible low unit value has gained a lot of traction in the overall revenue generated by the motorcycle business.

Downstream economic activity in the motorcycle industry

As with the wider motor vehicle industry, the motorcycle business supports downstream economic activity in servicing, maintenance and repair, as well as insurance and financial services, and generates licence income for government. It also offers cost-effective alternatives to traditional retail logistics, particularly for groceries, food delivery, and small parcels. This shopping evolution is here to stay, given the momentous value big companies are prepared to pay for delivery services. A recent sale by Prosus of its stake in Delivery Hero, a mainly European delivery service, placed a value of €6.7bn or ≈ R315bn. While the European market is much bigger, it does offer some perspective on the business value of this economic activity.

The South African motorcycle industry is shifting from manufacturing constraints towards services, imports, and delivery-driven demand. The growth in e-commerce, electric mobility, and the gig economy is reshaping this industry and generating broader economic value that requires supportive, innovation-friendly policy to sustain momentum.