Harley-Davidson (HD), the American motorcycle manufacturer which bought over the iconic Italian sportsbike company MV Agusta last year is upping its ante in India. It plans a major scale up of its operations in the world's second largest two-wheeler market.
It is believed that Matt Levatich, president and chief operating officer of the company will be arriving in the country next week to speak at a SIAM conference and is likely to also evaluate the possibility of launching its products in India.Rumours are doing the rounds that Levatich may hold exploratory talks with the Indian government to set up a manufacturing base in the country.
It is widely speculated that the that the Milwaukee-based motorcycle manufacturer is gearing up to launch an array of its models in India by 2010-11, beginning with Fatboy, which would be imported as a Completely Built Unit (CBU), and is estimated to sport a price tag of over Rs. 20 lakh. At a later point of time, it may consider assembling its low-end Sportster 883 at its proposed greenfield assembly facility (in a CKD form), although the location has not yet been finalised.
It was also reported nearly six months back by ‘Live Mint’ that HD was in talks with the Foreign Investment Promotion Board (FIPB) in India, with regard to securing permission for setting up its retail outlets in the country. Subsequently, Harley may even set up an assembly unit here – its third overseas facility after Singapore and Thailand. At the moment, it is scouting for an office in Gurgaon, as indicated by The Hindustan times earlier. It is widely believed that Harley's CBU imports are expected to come to India by end-2010, while the company may only start assembly of its bikes here by 2010-11.
According to auto analysts, Harley-Davidson bikes imported to India as CBUs will cost in the rage of Rs. 6-20 lakh because of the heavy import duties levied on imported bikes, though prices will come down significantly if the company set up an assembly unit in the country.
It may be recalled that Harley-Davidson's efforts to sell heavyweight motorcycles in India was earlier hindered by stringent emission requirements and high tariffs and taxes. However, it got a fillip when DGFT has allowed their import into India provided; they have been homologated by any certified agency from the European Union. Earlier, the policy stated that the bikes needed to be homologated only in their country of origin as this meant that all 800cc plus bikes needed to be tested and then approved in the country they were manufactured in, to be treated roadworthy in India.
Tanmay Posted on 8/26/2009 4:20:11 AM
I have read that harley is going to be launched on 27th Aug, is it true? well i got some more info on to this here: http://www.bikebhp.com/harley-davidson-motorcycles-are-coming-india/
Anindya Posted on 8/25/2009 10:42:59 AM
Harley-Davidson might see India as a key market, but duties imposed on CBUs are a big obstacle. They push prices to more than twice of what they are in the country of origin. Setting up an assembly unit for its bikes in India is, however, not a likely possibility, given that the market in India for big, expensive motorcycles is not very large at present. Also, Indian consumers seem to have a marked preference for Japanese sportsbikes and superbikes rather than cruisers and touring bikes, which Harley-Davidson makes.
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