Harley-Davidson registers a decline in quarterly net income

Harley-Davidson has posted a marginal decline in its quarterly net income, owing to the drop in sales in its biggest market – the United States of America. The company raked in USD 250.5 million (Rs 1660 crore) as opposed to USD 269.8 million (Rs 1788 crore) it had managed in the corresponding period, last year.

Though Harley-Davidson continues to dominate the US market with over 50 per market share, the plunge in sales has been a cause of concern for the company. However, the US is just an exception as the rest of the global markets reported a jump in sales. Canada reported a 16.3 per cent growth, Asian markets grew by 6.6 per cent while Europe, Middle East and Africa region grew by 8.8 per cent. Looking ahead, the company is projecting exports to reach 82,500 to 87,500 motorcycles in the second quarter, as compared with 85,172 motorcycles in the previous year.

Harley-Davidson’s growth has been spearheaded by the new Street range of motorcycles, followed by the Sportster series. These models have proved to be successful in emerging markets like India, Indonesia, Thailand and Africa, where entry-level and light models find a bigger customer base than heavyweight cruisers. The company recently expanded its Sportster range with the launch of the new 2016 Roadster.