That’s right, Harley Davidson is all set to setup a factory in Haryana next year to assemble its motorcycles in India, in an attempt to bring down the price of its bikes!
By importing its motorcycles through the CKD route, instead of CBU route, which it currently employs, there will be a substantial reduction in the import duty currently being imposed on their bikes, which can then be passed on to consumer, in a bid to shore up demand.
In a statement issued by Harley Davidson, it’s President and COO., Matthew S. Levatich said, “This investment (to set up a factory) will allow Harley-Davidson to improve our market responsiveness and production flexibility while reducing the tariff burden, which we expect will drive growth over time by making our bikes more accessible to India’s consumers.”
While there is no decision yet on which models are expected to be assembled in India, 70000 square feet of land have been earmarked for the project and investment by the company will be in tune of several million dollars.
Harley Davidson is also planning to expand its dealership network in India by adding one dealer each at Kolkata, Ahmedabad and Kochi.
Hopefully, other motorcycle companies selling imported motorcycles in India would follow Harley Davidson’s steps and make their motorcycles much more affordable, thus increasing the size of premium motorcycle segment in India.