Eddieb
14th July 2004, 16:29
Copied from xtra.co.nz 14/7/04
As the Easy Rider generation rediscovers its love of the open road, motorcycle makers are revving up to challenge Harley-Davidson's domination of the growing -- and lucrative -- US cruiser market.
Cruisers, typically bigger machines with wide handlebars that drivers ride upright rather than hunched over the fuel tank, represent nearly 60 percent of an estimated $6 billion in annual U.S. new motorcycle sales, industry executives and experts say.
Harley-Davidson Inc. rules the U.S. cruiser market with 51 percent of total sales, followed by Honda Motor Co. <7267.T> at 22 percent and Yamaha Corp. <7951.T> at 11 percent, according to data compiled by Suzuki, which itself has an 8 percent share.
In the early 1990s, Japanese motorcycle makers like Honda quickly tapped into the growing demand for cruisers with their own models aimed at challenging Harley-Davidson, according to industry expert Don Brown.
But others like Suzuki are now looking to make a more serious run with a new line of cruisers even as some caution that taking on Harley and its legendary brand is a tough task.
"They realized the cruiser was here to stay, said Brown, president of DJB Associates, which publishes the monthly U.S. motorcycle market index.
American Suzuki Motorcycle Corp. plans to have its new Boulevard models in dealer showrooms in August as the U.S. arm of Suzuki Motor Corp. <7269.T> seeks to extend its success with sports bikes to the cruiser market.
Suzuki decided to launch the Boulevard brand to target those aging riders who are ready to get off a sport bike but still want features like fuel-injection technology, said a company executive.
"We feel there is not a bike like that on the market right now," said Mel Harris, vice president of American Suzuki's motorcycle/marine operations. "This is not your grandfather's cruiser that goes putt, putt."
He acknowledged that knocking Harley off the road would be difficult and said Suzuki would mainly look to take business away from its Japanese rivals in a market where sales have increased every year for the past five years, according to data from the Motorcycle Industry Council.
At the same time, Harris credited Milwaukee-based Harley with carving out demand for cruisers and turning its motorcycles into American icons.
Industry expert Brown said cruisers have become popular with an older generation, including baby boomers with the disposable income and desire to buy into a motorcycle lifestyle romanticized in the 1969 film "Easy Rider."
Yet he said Japanese manufacturers at first ceded classic cruisers to Harley because of steep tariffs the United States imposed on big bikes in the early 1980s. Instead companies like Suzuki focused on smaller sports motorcycles.
"The latest effort on the part of Suzuki is not hitting Harley head-on, but creating their own definition of the cruiser," he said. "They need to do something to get a bigger slice of the market."
Suzuki's new lines, which include traditional choppers with pullback handlebars as well as a more drag-type style, aim to appeal to a wide range of enthusiasts, the company said.
They are also priced similar to models from other Japanese motorcycle makers at about $6,500 to $10,000, compared with high-end Harley-Davidson cruisers that typically range from $15,000 to $25,000.
Yet analyst Carole Buyers of RBC Capital Markets said a lower price may not do much to affect Harley-Davidson, which only lost market share in the 1990s because it could not keep up with soaring demand.
"Harley is synonymous with cruisers," Buyers said. "Just as hard as it is for Harley to break out of the cruiser and touring category, it is just as hard for others to break in."
As the Easy Rider generation rediscovers its love of the open road, motorcycle makers are revving up to challenge Harley-Davidson's domination of the growing -- and lucrative -- US cruiser market.
Cruisers, typically bigger machines with wide handlebars that drivers ride upright rather than hunched over the fuel tank, represent nearly 60 percent of an estimated $6 billion in annual U.S. new motorcycle sales, industry executives and experts say.
Harley-Davidson Inc. rules the U.S. cruiser market with 51 percent of total sales, followed by Honda Motor Co. <7267.T> at 22 percent and Yamaha Corp. <7951.T> at 11 percent, according to data compiled by Suzuki, which itself has an 8 percent share.
In the early 1990s, Japanese motorcycle makers like Honda quickly tapped into the growing demand for cruisers with their own models aimed at challenging Harley-Davidson, according to industry expert Don Brown.
But others like Suzuki are now looking to make a more serious run with a new line of cruisers even as some caution that taking on Harley and its legendary brand is a tough task.
"They realized the cruiser was here to stay, said Brown, president of DJB Associates, which publishes the monthly U.S. motorcycle market index.
American Suzuki Motorcycle Corp. plans to have its new Boulevard models in dealer showrooms in August as the U.S. arm of Suzuki Motor Corp. <7269.T> seeks to extend its success with sports bikes to the cruiser market.
Suzuki decided to launch the Boulevard brand to target those aging riders who are ready to get off a sport bike but still want features like fuel-injection technology, said a company executive.
"We feel there is not a bike like that on the market right now," said Mel Harris, vice president of American Suzuki's motorcycle/marine operations. "This is not your grandfather's cruiser that goes putt, putt."
He acknowledged that knocking Harley off the road would be difficult and said Suzuki would mainly look to take business away from its Japanese rivals in a market where sales have increased every year for the past five years, according to data from the Motorcycle Industry Council.
At the same time, Harris credited Milwaukee-based Harley with carving out demand for cruisers and turning its motorcycles into American icons.
Industry expert Brown said cruisers have become popular with an older generation, including baby boomers with the disposable income and desire to buy into a motorcycle lifestyle romanticized in the 1969 film "Easy Rider."
Yet he said Japanese manufacturers at first ceded classic cruisers to Harley because of steep tariffs the United States imposed on big bikes in the early 1980s. Instead companies like Suzuki focused on smaller sports motorcycles.
"The latest effort on the part of Suzuki is not hitting Harley head-on, but creating their own definition of the cruiser," he said. "They need to do something to get a bigger slice of the market."
Suzuki's new lines, which include traditional choppers with pullback handlebars as well as a more drag-type style, aim to appeal to a wide range of enthusiasts, the company said.
They are also priced similar to models from other Japanese motorcycle makers at about $6,500 to $10,000, compared with high-end Harley-Davidson cruisers that typically range from $15,000 to $25,000.
Yet analyst Carole Buyers of RBC Capital Markets said a lower price may not do much to affect Harley-Davidson, which only lost market share in the 1990s because it could not keep up with soaring demand.
"Harley is synonymous with cruisers," Buyers said. "Just as hard as it is for Harley to break out of the cruiser and touring category, it is just as hard for others to break in."