Harely Davidson India to try local assembly to bring down costs

Even as American heavyweight bikemaker, Harley Davidson, is on course to burn its rubber on Indian roads, it is at the same time looking at ways to bring down its costs simply because imported bikes attract 60 per cent import duty and with 30 per cent local taxes additionally makes the MRP of the product prohibitively expensive.

In its bid to find a solution, the American bike major is weighing options to assemble its bikes in India, as reported by Live Mint exclusively. However, the business daily claims that the proposal is still under consideration and it is hard to say what decision the firm will take, citing some unconfirmed sources. The first batch of motorcycles would however be brought in from its parent company’s plant and dispatched at its various dealers in the country to dealers starting April, would be imported as completely built up (CBU).

“With the present duty structure, more companies would look at assembling their cars and motorcycles in India. For Harley-Davidson this would achieve a twin objective. They’d be able to keep their US plants active and reduce prices for Indian consumers,” said Dilip Chenoy, director general of the Society of Indian Automobile Manufacturers.
It is widely believed that Harley would be looking to enhance its foothold in emerging markets like India, after witnessing a massive drop in its volumes in developed markets like Europe, US, etc.

Recently at the Auto Expo, Harley-Davidson India announced it will bring 12 motorcycles from its 2010 model portfolio to India. The broad selection, with bikes from each of its five model families, will give riders in India maximum choice and opportunity to join millions of Harley-Davidson owners worldwide in pursuit of adventure, freedom and self-expression. The 12 models Harley-Davidson launched for the Indian market earlier this month would retail for Rs. 6,95,000-34,95,000 as the firm would have to pay around 80% in import duties and other levies. “For over a century, Harley-Davidson has inspired motorcyclists across the world to celebrate their passion for riding. Our experience in leading the leisure motorcycle market worldwide makes us naturally suited to help lead and define leisure riding in India. We entered India with a promise to bring riders the pure Harley-Davidson experience with bikes from every family. Over the past year we have listened to riders across India at our many events, and we have produced a line-up to stir their soul,” said Anoop Prakash, managing director, Harley-Davidson India.