Retrocycles: How Indian Throttles Harley

The New York Times: Harley-Davidson “now faces perhaps its most trying challenge in decades. Polaris, an established American company with manufacturing know-how and a revered motorcycle brand in Indian, is quickly making big strides … Indian’s sales grew 17 percent in the second quarter of this year, while Harley’s sales shrank nearly 7 percent. Overall sales for large-displacement bikes, the kind that Harley specializes in, shrank 9 percent in the second quarter of this year.”

“The rebirth started well, with attractive bikes earning positive reviews from enthusiast publications … All Indian motorcycles are built in Spirit Lake, Iowa. While its bikes like the Scout and the just-released Scout Bobber are aimed at younger buyers, most models revel in heritage, with styling and names that hark back to the company’s prewar glory days. They represent, as Karl Brauer of Kelley Blue Book, an auto research firm, put it, ‘a cool theme married to a modern chassis’ and particularly appeal to buyers with a ‘what have you done for me lately’ outlook on brand loyalty.”

“Inevitably, Indian’s retro approach makes the brand a head-to-head competitor for Harley-Davidson, offering bikes in the touring, cruiser and midsize classes as well as the popular bagger category, or bikes carrying saddlebags but not the full windscreen and gear of a long-distance touring machine … To be sure, there is little chance that Indian will run Harley-Davidson out of business anytime soon. Harley’s sales last year, some 260,000 motorcycles worldwide, generated revenue of $6 billion.”

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