Harley-Davidson Acquires Kid-Focused Electric Bike OEM

Harley-Davidson Inc. has acquired StaCyc Inc., a manufacturer of electric-powered two-wheelers specifically designed for kids, which could help to inspire future Harley riders at an earlier age, BMO Capital Markets analyst Gerrick Johnson told Powersports Finance.

As a part of its More Roads to Harley-Davidson accelerated growth plan, the OEM plans to expand the demographic of Harley riders. While 20 to 30 years olds are a frequent demographic target in the industry, StaCyc bikes could ingrain the Harley ethos onto kids, Johnson said.

“A little known fact is that most people who ride motorcycles [as an adult] make the decision when they are between the ages of nine and 13 years old,” Johnson explained. “From that standpoint, getting something that’s geared towards an obviously younger market — getting the Harley brand and the idea of riding a self-propelled two-wheeled vehicle at a younger age — makes sense.”

The Temecula, Calif.-based StaCyc entered the market in 2016 and designs 12-inch and 16-inch eDRIVE models for kids, which range from $649 to $699.

For More: Harley-Davidson U.S. Retail Sales Fall 10% in 4Q18

The company was acquired by Harley-Davidson for an undisclosed sum. As a subsidiary of Harley, StaCyc’s models will be Harley-Davidson branded and sold through select Harley-Davidson dealers. 

However, some dealers may not want to devote floor space to vehicles that won’t produce as much profit as some of Harley’s other models.

“Granted the footprint of a StaCyc isn’t as big as, say, an Electra Glide Ultra Classic,” Johnson said. “Maybe two or three of [StaCyc’s] bikes fit in the footprint of an Ultra Classic, but a dealer is going to want to sell an Ultra Classic because it’s a $25,000 bike, and you’re going to get a lifetime customer of parts, accessories, and servicing. Whereas with [StaCyc], they only cost [about $650] and the lifetime value of that customer is very nebulous.”

The branded electric products will be available in the U.S. in the third quarter of 2019. Harley-Davidson Financial Services declined a request to comment on whether StaCyc bikes will be financed by the captive.

Matthew Wood

Matt Wood is the Associate Editor of PowerSports Finance, where he is responsible for covering all the latest news, trends, and innovations with powersports lenders and dealerships. Previously, Matt was a writer for Auto Finance News before switching full-time to PowerSports Finance. He is also an experienced entertainment news writer covering pop culture, movies, and TV shows. Matt received his Bachelor’s degree in Communication from Rowan University in New Jersey.

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