PowerSports Business

April 3, 2017

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experienced the largest increase of average sell- ing price, when comparing 2015 to 2016. ACCESSORIES STRONG IN WEST Buyers in the West continue to show that they like accessories. Average accessory sales increased 5 percent in 2016 compared to 2015. Over many different studies and different time periods, California has been found to be lower than all over regions in sales of acces- sories on units. Cruisers are no exception. While improving since 2012, California is still the lowest in cruiser accessory sales per unit per year. California experienced the largest decrease in accessory sales in 2016, decreasing 20 percent from 2015. The South experienced the largest increase in average accessory dollars per new unit sold, increasing 11 percent from 2015 to 2016. The Northwest also experienced an increase in accessories sold in 2016, increasing 8 percent FOCUS PSB V-twin 20 • April 3, 2017 • Powersports Business www.PowersportsBusiness.com but bode well for the next 10 years. And I think that's where we really want to take this year as being kind of a pivot point to really building the next generation of riders and thinking much longer term." As Harley-Davidson begins sharing the 10-year plan with its dealers, it's finding immediate acceptance and adoption. Many dealers have been working with The Motor Company to grow ridership for years. "We certainly see their enthusiasm when it comes to our new strategy around really not just building motorcycles, but really build- ing the next generation of riders and how our dealer network has embraced that, everything from their energy and excitement around our Riding Academy programs and new dealers wanting to adopt those programs and take those on to build more ridership, to the things they're doing on their end in their local markets to just engage their communities," Prakash reported. "From my point of view, the dealer network is focused; they're aligned on the strat- egy. It really does support their business, and that's really what we want to do is not only drive our customer experience, but their profitability and their long-term growth." 2017 RIDING SEASON When talking about 2016, Prakash said, "The nice thing is it's come and gone." Worldwide Harley-Davidson retail sales were down 1.6 percent, as the U.S. dropped 3.9 percent, while international sales were up 2.3 percent. But Harley-Davidson wasn't alone in seeing decreases. In the U.S., on-highway motorcycle sales were down 4.2 percent in 2016, according to the Motorcycle Industry Council. "In the United States, it was really driven largely by the weak oil-dependent regions and how they were performing in terms of sales, and a lot of softness in the used bike market, which really drove up used bikes. The good news is we saw incredible interest in the brand, and overall total Harleys sold was higher than ever before. And it's just the mixed of used and new had changed. And that gives us great confidence coming into the new year," Prakash said. Harley-Davidson also experienced some share gains in 2016, he reported. At Daytona Bike Week, seen as the kickoff to the motor- cycle season, Harley-Davidson reported posi- tive pre-registrations for demo rides and other events. Harley-Davidson has also sparked extra excitement as of late with the release of the 2017 Street Rod and the Road King Special. "I think we're going to continue to see a lot of strength in our touring lineup because of the Milwaukee Eight, because of the Road King Special, and I certainly expect the Street Rod to turn a lot of heads and get a lot more people to consider the Street platform," Prakash said. PSB HARLEY-DAVIDSON CONTINUED FROM PAGE 17 u Coming in PSB in May In the next issue of PSB, we'll take a look into Harley-Davidson's Riding Academy program, with information from dealers, as well as Har- ley-Davidson director of U.S. Marketing and Market Development Anoop Prakash. Bikes like the 2017 Harley-Davidson Street Rod, announced in March, are designed to bring new riders into the sport. CDK CONTINUED FROM PAGE 19 NEW CRUISER UNIT SALES PER DEALER BY REGION Years 2012-16, 700K new units sold from 1,399 dealers See CDK, Page 21 PERCENT OF NEW V. USED CRUISERS SOLD Jan. 1-Dec. 31, 2016 370K Units sold from 1,399 dealers Source: CDK Lightspeed 149 97 64 84 95 126 151 96 67 75 88 159 156 102 66 71 94 176 137 114 83 68 97 191 119 113 86 102 101 163 50 70 90 110 130 150 170 190 210 California Midwest Northeast Northwest South West Year 2016 Year 2015 Year 2014 Year 2013 Year 2012 New 35.88% Used 64.12%

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