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Harley Davidson vs Indian Motorcycles
In this post, we will cover Harley-Davidson vs. Indian Motorcycles.
Why Is Harley Broke?
Harley-Davidson is in trouble—$117 million loss, collapsing sales, and closed dealerships. What happened to America’s legendary brand, and can they fix it before it’s too late? Stick around to find out.
The story of two iconic American motorcycle brands, Harley-Davidson and Indian Motorcycles, is a long-standing rivalry. Each has a devoted following and represents a slice of American culture and history, capturing the imagination of riders with their powerful bikes. However, their journeys split recently, with Harley-Davidson facing deep financial and cultural issues. At the same time, Indian Motorcycles, owned by Polaris Industries, has steadily increased its market share. This post, Harley-Davidson Issues, explores how India positions itself as a serious competitor and whether Harley can get itself back on the path of success.
Founded in 1903, the moment someone mentions Harley-Davidson, pungent images come to mind of the freedom of America. “Great by itself.” It symbolizes rebellion on the open roadway, taking the journey of self-discovery. Times are harsh for the brand, which has been a symbol of liberation. They face a monetary deficit of 116.9 million dollars. Alongside losing massive sums of grace in debt-burdened America, people aren’t willing to kiss up at the gas pumps to show off a brand you can buy during the summer’s budget flyer. Japan faced the hardest burden; losing shipments and idiotically diminishing profit estimates can severely impact economic growth. To top it off, unfair taxes are set to pour onto Harley-Davidson, resulting in more losses through the barrel of a mad, laughing America. People won’t see their fix for Harley-Davidson in America either, as stores are forced to shut down due to a lack of demand. This further fuels Harley’s insane estimation decline.
LiveWire’s electric motorcycles continue to be a source of frustration for Harley. Despite having high expectations, LiveWire experienced an operating loss of $26.2 million in Q4 2024, resulting in an annual total of $110 million. The amount was an improvement compared to $117 million the previous year. Livewire struggles to gain traction, with only 117 electric motorcycles sold by March 2024. Harley’s decision to halt further platform investments indicates a retreat from the ambitious project. Beyond economics, Harley has stirred controversy with its corporate decisions, especially DEI initiatives. Longtime fans, amplified by @robbystarbuck on X, have accused Harley of “woke” policies, claiming to alienate the core, male, and conservative rider base. Despite debunking the link between these policies and a 40% sales drop, Harley’s president’s backlash and firing exacerbated the perception problem. The low value traded in bikes fuels the growing notion that riders are ditching their Harleys for competitor bikes. The aging customer base further contributes to this issue. Traditional riders are getting older while the company struggles to attract younger buyers. Efforts like the 2021 Pan America adventure bike showed promise but haven’t reversed the broader sales decline.
Conversely, Polaris’s revival of Indian Motorcycles in 2011 positioned it as a formidable contender after entering the market in 1901. As riders gravitate toward India for its modern tech and classic styling, Polaris struggles to recover from a 27% sales drop in 2024. Indian offers the further advantage of competing with Harley’s Softail, Sportster, and Touring models by offering Indian Chiefs, Scouts, and Challengers at lower price points—riders who cherish heritage value India’s PowerPlus engines, ride mode touchscreen displays, and heated grips. India does not choose to utilize the culturally contentious branding favored by Harley, which allows the company to connect with a wider audience, including disillusioned ‘X’ auto-poster switchers. India has earned rider loyalty through community-building initiatives like the Indian Motorcycle Riders Group. Although smaller, it is expanding its dealership network. India is gaining market share in the heavyweight motorcycle sector by avoiding controversies and outpacing its competitors in value, innovation, and brand appeal.
Can Harley-Davidson turn things around? Although recovery is difficult, it is possible to take the right steps. Harley could lobby for exemptions or simplify its global supply chain to counter tariff threats, similar to how it dodged EU tariffs in 2021. Reconnecting with core riders is critical and can be achieved through scaling back controversial initiatives and embracing HOG’s fierce, rebellious history with marketing and events such as Sturgis. More affordable options and further development of the Pan America and Sportster lines are imperative to reel in younger riders. While the future for LiveWire is uncertain, halting investment in inexpensive electric motorcycles could be a way for Harley to reposition themselves for long-term growth. Operational cost reductions have proven beneficial, and share buybacks coupled with leaner business operations equal stronger bottom lines. Balancing these changes alongside investment in new products is crucial to remaining industry leaders.
The brand Indian is also in a good position to continue competing with Harley. Its lower pricing, modern engineering, and Harley-avoiding brand neutrality give it a competitive advantage. Nonetheless, India still feels the crunch of a poor economy. It has to expand its dealerships to keep pace with Harley. The competition between these two American brands is still intense. However, Harley has faced challenges due to financial losses, tariff risks, and cultural missteps, creating opportunities for Indians. To counter these opportunities, Harley must tackle economic hurdles, regain brand loyalty, and shift strategies for the new era of riders. Economically, the outlook seems grim, but until then, Indians seem to be able to dominate and influence the American motorcycle market.
https://youtu.be/0vXFUWukcoc?si=F3zKjzNnJT7wlUfV
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This discussion was modified 4 hours ago by
Gustan Cho.
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Why Is Harley Broke?Harley-Davidson is in trouble—$117 million loss, collapsing sales, and closed dealerships. What happened to America’s legendary brand, an...
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This discussion was modified 4 hours ago by
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1 Reply
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You’d like to know more about Harley-Davidson’s challenges. Given your conversation objectives, I have included the parts that would be most useful.
Industry Issues
- Diminishing Customer Base: Analyze how a company’s demography affects its sales and what can be done to engage older riders.
- Brand Equity: Offer solutions to reset the brand image and appeal suited to a different customer base.
Competition
- Old Competition vs New: Examine how the market is changing with the emergence of new electric motorcycle manufacturers.
Costs and Revenue
- Cost of Production: Focus on Harley’s Remarkable market.
- Competition affects Brand recognition and profit margins.
- Effects of Political Relations: Evaluate how political relations affect business internationally and domestically, specifically sales and marketing.
Price Strategy
- LiveWire: Critically analyze the perception and reception of LiveWire and its potential as an electric motorcycle.
- Looking Globally: Inspect how these organizations succeeded or failed to meet new customers or clients in different regions.
Harvard Trek Team Items
- Operations sustainability: Assess ongoing efficiency initiatives implemented by the two companies and their overall health, guiding a profitable enterprise.
Open Questions for Continued Conversation:
- Which of these challenges might be the most harmful risk to Harley-Davidson?
- What more ideas could the company put in place to help it meet the goals of these challenges?
You don’t need to make any particular preference here!