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Global Motorcycle Sales In Free Fall Due To COVID-19

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by Dustin Wheelen from https://www.rideapart.com Even before the World Health Organization declared COVID-19 a pandemic on March 11, 2020, many financial experts were speculating on the impact of the global crisis. Once motorcycle manufacturers and dealerships closed their doors to observe social distancing orders and promote public safety, we knew that the market could undergo a massive reduction in productivity and sales. Now that economic reports for the month of March are available, we’re able to assess the impact on the industry—and it isn’t good. We all knew that global motorcycle sales stumbled in 2019, but with the advent of the novel coronavirus, we could see a further decline for markets like India and a contraction of previously growing sectors in Europe. In India, the world’s largest motorcycle market, domestic manufacturers saw steep downturns in March. Year-over-year sales figures declined for Hero MotoCorp (-43 percent), Royal Enfield (-44 percent), Bajaj (-55 percent), and TVS Motor Company (-62 percent) during the third month of 2020. Foreign makes weren’t immune to the economic slowdown with Suzuki India selling 42% less units during the period as well. Not all the news was bad though, as Honda Motorcycle & Scooter India managed to increase sales by 10 percent. Despite the bleak numbers, Suzuki India Managing Director Koichiro Hirao emphasized the company’s responsibilities during the global pandemic. “At present, our first and foremost priority is to ensure the health and safety of the employees and all stakeholders,” said Hirao. “As the industry fights the COVID-19 pandemic by implementing shutdowns and taking precautionary measures, we believe that industry will overcome this difficult time and bounce back with positive growth in the coming months.” Though Suzuki India is enduring its own woes during this time, the company still reported a 5.7-percent increase in sales during the 2019-2020 […]

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Harley struggles to fire up new generation of riders with electric bike debut

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by Rajesh Kumar Singh from https://www.reuters.com/ CHICAGO (Reuters) – Harley-Davidson Inc (HOG.N) is betting on electric motorcycles to attract the next generation of younger and more environmentally conscious riders to reverse declining U.S. sales. But as Harley ships its first “LiveWire” bikes – priced at $29,799 – to dealers, there is little evidence the 116-year-old brand is catching on with new young customers. The problem lies mostly with this “super-premium” product’s price. The bike costs nearly as much as a Tesla Model 3, and aims for a market that does not really exist: young, “green” and affluent first-time motorcyclists. The sleek sport bike has been available for preorder in the United States since January. However, the bulk of the orders are coming in from existing and old riders, according to interviews with 40 of the 150 dealerships nationwide that are carrying the bike this year. The dealers Reuters spoke with account for little over a quarter of LiveWire dealerships and are spread across Wisconsin, Illinois, Indiana, Ohio, Michigan, California, Nevada, New Jersey and New York. Harley has for years failed to increase sales in the United States, its top market accounting for more than half of its motorcycles sold. As its tattooed, baby-boomer base ages, the Milwaukee-based company is finding it challenging to woo new customers. In 2018, Harley posted the steepest sales decline in four years in the United States. U.S. sales are tipped to fall again this year. Harley Davidson’s U.S. Retail Sales Grappling with an ageing customer base and the waning charm for its big bikes, Harley has failed to post sales growth in the United States – its biggest market – in the past four years. The heavyweight motorcycle maker’s stock price has declined by 42% in the past five years. By comparison, the S&P 500

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Maturing US Market Coupled With Global Auto Slowdown Affecting Harley-Davidson’s Top Line

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by Trefis Team https://www.trefis.com Harley-Davidson (NYSE: HOG), whose stock currently trades at around $35, generates its revenue primarily from its Motorcycle segment, which is projected to account for 86% of total revenues in 2019, while the Financial Services are expected to contribute 14% to the top line. In this note we discuss the revenue segments of Harley-Davidson, their historical performance, and expected Total Revenue for 2019. You can look at our interactive dashboard analysis ~ Harley-Davidson’s Revenue: How does HOG make money? ~ for more details. In addition, here is more Consumer Discretionary data. What Does HOG offer? Harley-Davidson Motor Company was founded in 1903. In 1986, Harley-Davidson, Inc. became publicly held and currently is the parent company for the groups of companies doing business as Harley-Davidson Motor Company (HDMC) and Harley-Davidson Financial Services (HDFS). The company specializes in heavyweight (601cc+) cruiser and touring motorcycles. The Company’s long-term strategy, announced in 2017, is to build the next generation of Harley-Davidson riders globally and includes the following 2027 objectives: Build two million new Harley-Davidson riders in the U.S. Grow the Harley-Davidson international business to 50 percent of its total annual volume. Launch 100 new, high-impact Harley-Davidson motorcycles. Deliver superior return on invested capital for HDMC that falls within the top quartile of the S&P 500. Grow the business without growing its environmental impact. Operating Segments: Motorcycles and Related Products Segment: The Motorcycles segment consists of HDMC, which designs, manufactures, and sells at wholesale, on-road Harley-Davidson motorcycles as well as motorcycle parts, accessories, general merchandise, and related services. The Company conducts business on a global basis, with sales in the United States, Canada, Latin America, Europe/Middle East/Africa (EMEA), and Asia Pacific. Financial Services Segment: The Financial Services segment consists of HDFS which is engaged in the business of financing and servicing wholesale

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The Battery Wars of the near future

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U.S. legislation aims to thwart China’s electric vehicle dominance WASHINGTON: A U.S. senator plans to introduce legislation on Thursday to streamline regulation and permitting requirements for the development of mines for lithium, graphite and other electric-vehicle supply chain minerals, part of a plan to offset China’s dominance in the space. U.S. Senator Lisa Murkowski, the Republican chair of the Senate’s Energy and Natural Resources Committee, will introduce the Minerals Security Act alongside Senator Joe Manchin. “Our challenge is still a failure to understand the vulnerability we are in as a nation when it comes to reliance on others for our minerals,” Murkowski told Reuters. France, Germany agree on first battery cell consortium France and Germany have earmarked 1.7 billion euros ($1.90 billion) to support several company alliances looking to produce electric car battery cells, a step aimed at reducing the dependence of European carmakers on Asian suppliers. BERLIN: France and Germany have asked the European Commission to green-light state subsidies for a cross-border battery cell consortium involving carmaker PSA with its German subsidiary Opel and Total’s Saft, FAZ newspaper reported on Monday. The economy ministries of both countries sent a letter of intent to the European Union’s executive body asking Brussels to quickly give its go-ahead, the newspaper said, adding that the sum of the planned support was not mentioned.

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Harley-Davidson Acquires Company That Makes Electric Bikes for Kids

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Harley-Davidson is trying to attract a new generation of riders at a very young age. The iconic motorcycle company announced Tuesday that it was buying StaCyc, which makes two-wheel electric bikes for kids. StaCyc has two models — the 12eDrive and 16eDrive — that the company describes as “the perfect choice for little rippers” between the ages of 3 and 7. The bikes have a top speed of about 10 miles per hour and sell for a range of $649 to $699. Harley-Davidson said in a statement that Harley-Davidson branded versions of StaCyc’s two models will be available at select Harley-Davidson dealers in the United States in the third quarter of 2019. “The StaCyc team shares the same vision we have for building the next generation of riders globally and we believe that together, we will have a significant impact in bringing the fun and enjoyment of riding to kids everywhere,” said Heather Malenshek, Harley-Davidson senior vice president of marketing and brand, in the statement. Harley-Davidson is increasing its bets on electric vehicles as sales of traditional bikes slow. The company has already announced plans to launch the LiveWire premium electric motorcycle this fall. It is also developing other electric bikes that it plans to start selling in 2021. Harley-Davidson needs new growth opportunities as the company struggles to deal with tariffs from the Trump administration that have hurt earnings. Sales and profits are expected to fall this year and revenue is only expected to rebound slightly in 2020. Shares of Harley-Davidson have rallied this year with the rest of the market, rising 10% so far in 2019. But the stock is trading nearly 20% below its 52-week high.

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