Meanwhile, US market analyst Gerrick L. Johnson of BMO Capital Markets says Indian may be winning sales from Trump-supporting Harley-Davidson owners.
He says some HOGs may have supported President Trump’s call for a Harley boycott after the company announced plans to produce more bikes overseas. The move was in reaction to high tariffs from Trump’s trade wars.
Gerrick claims Indian Motorcycle dealers have reported a recent increase in Harley trade-ins.
“The overlap between Donald Trump supporters and Harley riders is significant. Thus, it’s disconcerting to have the President call on these consumers to boycott the brand,” he wrote to clients.
“In response to new European tariffs on American motorcycles, HOG may have had the right financial intentions but the way it communicated its strategy was a public relations debacle.”
Harley still has 48% of the US heavyweight motorcycle market (above 900cc), while Indian Motorcycle has about 7%, which is slightly up on the same time last year.
In the 2018 third quarter, Indian Motorcycle sales increased “low-single digits” while the domestic 900cc and above motorcycle sales were down “low-teens percent”.