Harley-Davidson hasn’t been doing too well the past few years. According to recent financial reports (Fool, CNBC, Forbes), their once great stronghold on the US market, looks to be diminishing. In fact they have officially lowered their guidance from 269,000-274,000 motorcycles in 2016 to 264,000-269,000.
So what exactly is causing the decline in Harley Sales and market share? Well there’s a few reasons.
1.) Victory and Indian are stealing market share with newer updated models, at a much lower price point.
2.) Harley is still demanding premium prices for their bikes.
3.) Worst of all, Harley’s shipped reports are often “exaggerated”. They’re reporting on bikes shipped to the dealers, not bikes sold. So basically their dealers are getting filled to the brim with excess inventory that’s not moving without serious incentives and discounts.
Will Harley be able to turn things around? It’s not looking great unless they start doing some serious innovation and restructuring of their market strategy, as well as some more cost effective models. Where do you guys see Harley in the next 10 years?