Harley-Davidson Has a New Royal Pain to Worry About
It's bad enough Harley-Davidson (NYSE: HOG) is in the midst of a two-year slide in U.S. motorcycle sales, but it may have a new headache to contend with. India-based motorcycle maker Royal Enfield is introducing a new big motorcycle to the Indian market, a move that could lead to Harley-Davidson losing its dominance overseas. It could also create headaches here at home.
It's possible you've never heard of Royal Enfield, or only associated it with the famed rifle of the British army, but it is today the world's largest motorcycle manufacturer located in the world's biggest motorcycle market. It has a largely negligible presence in the U.S., and its bikes typically have small engines compared to the big bore bikes Harley produces, but it was founded in 1901, giving it a lineage older than Harley-Davidson (and as old as Indian Motorcycle), and now it looks like it wants to take on Harley-Davidson wherever it does business.
Image source: Royal Enfield.
Source: Fool.com