In this podcast episode we discuss several topics. Indian Motorcycle sales were down for the forth quarter of 2024, Harley-Davidson dealing with tariffs, and motorcycle jump starters.
Indian Motorcycles, founded in 1901, is one of America’s oldest and most iconic motorcycle brands. After dominating the market in the early 20th century with models like the Scout and Chief, the company struggled and ultimately ceased operations in 1953. Over the next five decades, several revival attempts failed until Polaris Industries acquired the brand in 2011. Polaris successfully relaunched Indian, preserving its heritage while expanding with modern designs and a broad lineup of seven motorcycle families. The introduction of the FTR1200 in 2019 marked its only major innovation in recent years. The brand reestablished itself as a serious rival to Harley-Davidson, especially in the North American market, where it achieved record sales of 43,219 units in 2022.
However, Indian's resurgence has hit a plateau. Sales have declined since 2022, with global registrations dropping to around 37,000 units annually. In 2024, the downturn steepened, with an overall decline of 12.4% through August, including a 15% dip in the U.S. and 9.9% in Europe. The brand’s heavy reliance on the maturing U.S. market, which accounts for 64% of its business, and a lack of consistent product innovation, are seen as key factors in its recent struggles. Despite its rich legacy and strong branding, Indian faces challenges in sustaining momentum without broader international expansion and a more aggressive approach to new model development.
With President-elect Donald Trump suggesting a 25% tariff on goods from countries like Mexico, Canada, and China, concerns are rising about how such measures might impact American companies—Harley-Davidson being a prime example. During Trump's first term, Harley was caught in a trade war between the U.S. and the EU, leading to potential tariffs as high as 56%, which the company estimated would cost over $200 million annually. Though it initially avoided these tariffs by exporting from its Thailand plant, recent EU rulings have closed that loophole. With Harley-Davidson’s international operations accounting for nearly 40% of its motorcycle sales—particularly in Europe and Asia—new tariffs or retaliation from other countries could severely affect its bottom line.
Beyond international trade tensions, there’s now speculation about the U.S. imposing tariffs on Harley’s own Thai-built bikes being sold domestically for the first time—an unprecedented move that could reignite past threats. While some voices continue to dramatize Harley’s situation, citing minor downturns as existential threats, the company remains profitable, recently reporting a $119 million quarterly profit. Still, its visibility as an iconic American brand makes it a convenient target in trade disputes. As global politics shift, Harley-Davidson must navigate both economic realities and its symbolic status, balancing manufacturing strategies and diplomatic crossfire.
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