Harley Davidson, the world famous motorcycle manufacturer, knows the potential of growth in India. Last fiscal, they sold 716 motorcycles in the country. This fiscal Harley Davidson India aims to sell about 2,000 motorcycles and by the 2015/16 fiscal, they aim to register sales of 10,000 motorcycles. Harley expects India to become their second largest consumer in Asia.
But with the launch of new superbikes from Honda, Kawasaki, and Hyosung, in the range of Rs 3 lakhs, they Harley India knows it won’t be easy to climb up the stairs. They will need to manufacture a made for India motorcycle in the same range in order to grow. Currently, in India, Harley Davidson sell motorcycles in the range from Rs 5.60 lakhs ($9,799) to all the way up to Rs 35 lakhs ($61,245).
Harley Davidson executives are already in talks with Indian vendors and dealers as they go about plans to bring in a new ‘made for India’ motorcycle that will debut at the 2014 Delhi Auto Expo. This new Harley motorcycle model will be fitted with a 400 to 500cc V twin ending with a selling price of approximately $6,300 (Rs.3.5 lakhs). This entry level motorcycle will slot below the 883cc Sportster and will be entirely manufactured within India.
At this competitive pricing the upcoming Harley Davidson will compete with Kawasaki Ninja 250R and KTM 390 Duke in the Indian market. Harley Davidson sales are strong in North America and Europe. In order to truly globalize the brand, they are looking towards emerging auto markets like India, Indonesia, China, Malaysia and other South East Asian nations for growth.
Speaking on their plans to setup a manufacturing unit in India, Mr Sanjay Tripathi, Marketing Director, Harley Davidson, India, said, “Harley-Davidson is highly focused on the ramp-up of CKD operations in India as it allows us to improve our market responsiveness and production flexibility while reducing the tariff burden. We currently do not have plans to set up another plant in India.” The new Harley Davidson made for India will also be manufactured at the assembling plant in Haryana.