EFG says motorcycle makers are trying to attract millennials to their bike, but many have price tags on their products that the generation doesn’t find attractive, Glenice Wilder, vice president of powersports at EFG Companies, told Powersports Finance.
EFG, which offers insurance and warranty products, says it data-gathering efforts have found 22- to 37-year-olds are looking for motorcycles in the $13,000 to $15,000 range.
Harley-Davidson Inc.’s 2018 models vary in price. Its Street and Sportster models fall within the millennial price range. However, its Softail, Touring, Trike, and CVO models exceed $15,000, with the CVO Road Glide priced as high as $41,000.
Student debt, said Wilder, is one of the factors crimping millennial spending. On average, millennials have about $3,500 debt per person versus $2,000 per Gen Xer, according to a report from Bernstein. Additionally, millennials tend to prefer group outings that are less expensive and have turned to the off-road segment, which “definitely nurtures that type of environment,” Wilder said.
OEMs need to pay attention to shift patterns. While Baby Boomers are willing to spend $23,000 to $25,000 on a motorcycle, they’re aging out of the market, Wilder said. And the riding population is shrinking. EFG said there were more than 1 million registered motorcycles in 2006. That number has steadily declined to 465,000 registered bikes in 2018.
In 2019, Harley will be moving forward with its initiative to attract more riders with a specific marketing push and the launch of new vehicles geared toward millennials, such as the electric Livewire. No price for these vehicles has been released yet.