Harley's LiveWire Will Boost the E-Motorcycle Market but Is Not Expected to Be a Game Changer

Outside of Asia Pacific markets, electric motorcycles (e-motorcycles) have struggled to achieve significant sales volumes. The motorcycle market in North America is built on the concept of the open road and long-distance driving, making electrification a difficult proposition considering range, charging speed, and infrastructure needs. As a result, companies like Alta Motors have focused their e-motorcycle products on off-road and recreational markets, where they do not have to compete in a range battle with internal combustion engine (ICE) models. However, the range of street-legal e-motorcycles is also improving—Zero Motorcycles’ 2017 model lineup featured the world’s first production e-motorcycle to exceed 200 miles of range on a single charge. This range achievement for an e-motorcycle is significant as it moves the industry much closer toward the requirements of consumers and the range capabilities of ICE motorcycles. 

While most e-motorcycle purchase prices are still higher than comparable ICE models, the price difference when considering the total cost of ownership is less pronounced due to declining battery costs and electricity being a cheaper energy source than gasoline. 

E-Motorcycle and ICE Motorcycle Total Cost of Ownership Comparison

Assumptions: Driving 15,000 miles/year, electricity costs are $0.11/kWh, gas costs are $2.90/gallon, 6-year ownership.

 (Source: Guidehouse Insights)

Harley Enters the Market

As part of Harley-Davidson’s effort to revitalize its declining ICE motorcycle sales, the company is entering the electric market and spending nearly $1 billion to develop a range of e-motorcycles. The introduction of Harley’s LiveWire (coming August 2019) was long expected to be crucial in spurring e-motorcycle sales in the large North American motorcycle market, given the company's strong brand and distribution network. While the LiveWire is fast (0 to 60 mph in 3 seconds, top speed of 110 mph) and uses advanced connectivity technology, with a price tag of roughly $30,000 and an unexceptional 140-mile range, the e-motorcycle is far more expensive than similar high performance models from competitors. For example, the SR/F model from Zero Motorcycles has a higher top speed of 124 mph, a longer 200-mile range (with an optional power tank, 161-mile range standard), and retails for a significantly lower price ($18,995). 

LiveWire Will Increase Interest in E-Motorcycles

While Harley’s LiveWire is a luxury e-motorcycle that is unlikely to achieve large sales figures, it will help the company in other ways and have tertiary benefits for the industry at large. The brand recognition of Harley will help raise the overall profile of the e-motorcycle industry and likely help continue the transformation around the culture and attitudes of traditional motorcycle riders toward electrics. Harley also plans to eventually rollout numerous other electric two-wheelers, including more lightweight and urban options that will presumably be lower in cost and more realistic vehicles for the new target markets. The high quality of the LiveWire will help cement the company’s position as a trusted brand with high performance products before more mainstream electric two-wheeled vehicles are released.