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.
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.