Harley-Davidson’s model year 2022 reveal on Wednesday was followed by a research note provided to Powersports Business from BMO Capital Markets analyst Gerrick Johnson.
Johnson’s report follows:
“Harley-Davidson’s (HOG) MY22 new product reveal introduced several new models – Low Rider ST, Road Glide ST, and the Street Glide ST – as well as a refreshed CVO lineup and Low Rider S. A heavy emphasis was placed on performance with the new ST models focused on increased power and better handling characteristics. HOG also teased the ‘next chapter’ for its Sporster lineup, which is coming in the next couple of months.
“The Road Glide ST and Street Glide ST are ‘performance baggers’ based on the highly popular touring bikes, and feature the Milwaukee Eight 117 engine – the first time its been offered outside of a CVO product. The new ST line also features taller rear suspension to add cornering ability and a more aggressive design aesthetic.
“The Low Rider ST is a ‘lightweight performance bagger’, i.e. a combination of performance and touring, also utilizing the Milwaukee Eight 117 engine, saddlebags, and a new front fairing.
“HOG’s MY22 CVO lineup features new paint options, with a focus on injecting more bright colors into the lineup.
“We like the direction HOG is going with its new models and refreshes, as it appears to be striking the right balance between appealing to its core customers while attracting new riders.
“Outside the CVO models and that line’s more vibrant paint schemes, HOG’s overall lineup is trending towards a more muted design aesthetic focusing more on blacks and bronzes, as opposed to flashy chrome. We think this is on-trend and should appeal to younger rider demographics.
“HOG also teased the ‘next chapter’ for its Sporster lineup which is coming in the next couple of months. The Sportster platform and powertrains are outdated and being phased out in Europe. Introducing a hot Sportster lineup, we think, will help significantly in bringing new riders into the brand.
“New MY22 motorcycle prices are up, on average by +2.6%, the highest y/y increase since +3.2% in MY2014. HOG generally also has material & freight surcharges of around $1,200 per bike, which adds +5% to +9% to the cost of a motorcycle.”