NHK has learned that Japan's antitrust watchdog is investigating the Japanese unit of US motorbike maker Harley-Davidson. Officials suspect the firm imposed excessive sales quotas on dealerships, leveraging its strong bargaining position.

Officials from the Japan Fair Trade Commission searched the office of Harley-Davidson Japan in Tokyo on Tuesday. The company is suspected of violating the antimonopoly law.

Sources familiar with the matter say the Japanese unit allegedly imposed the quotas on dealerships in 2020 and 2021. The sales targets were almost unachievable through normal promotion methods.

The sources say the firm is believed to have hinted to its dealers that it would not renew their licenses if they failed to make the quotas.

The sources add that some of them bought the bikes to fulfill the targets. Several struggling dealers were reportedly forced to shut their businesses.