Harley-Davidson launches its motorcycle range in India

US-based Harley-Davidson announced its plans to launch its range of motorcycles in India on August 27, 2009.

Photo: Harley-Davidson Fat Boy motorcycle

The company is said to have launched five models, Fat Boy, Night Rod Special, Roadster 883 cc category and a customized model, the Legend Harley.

All five motorcycles, that will go on sale in 2010, are in the price range of 10  lakh upwards. Might be more – top end models might cost anything, we don’t know yet. This is because the company will import completely built units, which will attract an import duty of 60 per cent.

Harley-Davidson has set up an unit in Gurgaon, India, and appointed Anoop Prakash as the managing director.

To start with, the company will kick off the process of procuring dealers in Mumbai, Delhi, Bangalore, Hyderabad, and Punjab.

“As a key next step, we are looking for local dealer partners who share our passion and commitment to building customer relationships, the Harley-Davidson brand and our business in India for the long term,” Anoop Prakash said.

The company has finally entered the Indian market after many false starts.

Despite receiving permission to start operations in India in 2007, Harley-Davidson put its India plans on the backburner because of very high import duties and strict emission requirements.

“Given the rapid development of India’s economy and physical infrastructure, this is exactly the right time to bring the world’s greatest motorcycles to one of the world’s largest motorcycling nations,” said Levatich.

“Our unique brand, distinctive motorcycles and strong experience in the leisure motorcycle market make us naturally suited to help lead and define the next era of motorcycling in India,” he further added.

The company will first focus on importing motorcycles, accessories and riding gear in India. It has said that the primary focus of the company is to lay the foundation for a long-term business and not to capture quick market share.

“We are not looking for any flash in the pan sort of performance. We would invest for the long haul because we thing India has got great strengths as an economy,” said Matthew Levatich, Harley-Davidson Motor Company President and Chief Operating Officer.

The company also said that it has no immediate plans to set up manufacturing facilities in India; rather, it will import motorcycles and and sell them as complete units in India for now.

As of now there very little concrete information available about the company’s strategy for the Indian market.

Firm details of the company’s plans are likely to be revealed by Matthew Levatich, who is an invited speaker at the Society of Indian Automobile Manufacturers annual convention, that will be held on August 28, 2009.

Harley Davidson is struggling with sluggish sales in the US.

The company revenues dropped by over 15 percent in January-June 2009, compared to the same period in 2008. Harley’s net income fell from $410.4 million in the first half of 2008 to $137.1 vis a vis the same period of 2009.

Reports say that the company is implementing cost-saving measures, such as short-term production cuts, permanent lay-offs, and plant closures to boost profitability.

The company sees India, the world’s second-largest market for motorcycles, as a lucrative market for expansion.

In fact, the super bike segment in India is growing fast despite prohibitive prices.

“As India continues to extend its global reach, so does Harley-Davidson,” said Levatich. “We believe Harley-Davidson has outstanding opportunities for continued growth around the world.”