Harley Considering Assembly Plant In India

Harley-Davidson is considering building a plant like the York facility in India to reduce import tariffs

The Journal Sentential is reporting that Harley-Davidson has given serious thought to building a manufacturing plant or rather a motorcycle assembly plant somewhere in India for the purpose of lowering the almost 100% tariff on imported heavyweight motorcycles.  Currently the HOG has 3 dealerships in India with plans to open 2 more in the fall.

The high import tariff prices Harley-Davidson's out of reach of most of the market in India.  A Sportster, the lowest priced HD in the states is currently $!4,000 in India, double that of a similar model in the USA.

Harley-Davidson has said that with shrinking domestic sales, it must look overseas to markets like China and India for growth, which rank number 1 and number 2 respectively in the two wheel consumer market.

Heavyweight bikes, however, make up less than 1% of two wheel sales in those developing markets.

Harley-Davidson expects that assembling the bikes in India would result in lower tariff's on the brand but could not say by how much.  Rod Copes, Harley-Davidson's senior vice president of international sales, marketing and business development was quoted in the story as saying,  "There isn't a generic rule on this.   The Indian government would decide how much the tariff would be reduced if Harleys were assembled using local labor."

Web Staff

One Comment

  1. I believe Harley-Davidson should enter foreign markets. HD should push sales throughout the world. The heavy weight bike is fantastic and I would not want to purchase another brand of motorcycle for touring the country or cruising around town. With better market diversification, HD can stabilize its financials and perhaps open up more jobs in the United States.

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