How Harley-Davidson is riding out of tumultuous terrain of bike sales
Harley-Davidson has announced its second-quarter results for the calendar year 2021. The legendary bikemaker from America has achieved a turnaround in its April to June 2021 sales, reversing its dwindling sales performance in the last few years.
The bike maker announced that it has managed to clock a 24% increase in sales in the second quarter of 2021 when compared to the corresponding period last year. Also, in the first half of 2021, the sales have been upped by 18%, the company added.
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The company has been battling continuously tumbling sales and revenue for the last few years, as a result, H-D announced a management overhaul in 2020, making Jochen Zeitz the Chief Executive Officer of the American bike company. "I'm pleased with the pace of improvements and with the strong quarter that we have delivered," said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson.
Zeitz reversed several crucial strategic decisions made by the previous authority. As per the new strategy, the company is focusing more on its core brands that make H-D a distinctive name in the motorcycle world. The company also pulled the plugs on the Street 750 range which, albeit, were the highest selling models in India and several other markets.
"We are starting to see the initial proof points as we execute our Hardwire Strategy, as demonstrated by the positive financial results today. We are encouraged by the signs of consumer positivity in the market; however, we remain mindful of the significant supply chain challenges that we expect to continue to impact the sector," added Zeitz.
The company said that the bounce back in sales has been mostly driven by Harley-Davidson's local market which saw a sales boost of 43% in Q2 and 38% for the first six months. On the other hand, sales were still in red in other parts - Europe, Middle East and Africa, Asia-Pacific, Latin America and EMEA.
However, the company informed that other markets were unable to pick up due to the discontinuation of Street and Sportster models as they didn't meet the current global emission norms.