Last Friday Harley-Davidson opened its first outlet in India. Though the company has identified dealers in Delhi, Mumbai, Chandigarh and Bangalore, the new outlet in Hyderabad “Banjara Harley-Davidson” became the first to start operations.
The Harleys sold in India are for now made in the USA and shipped there assembled. It seems that Harley-Davidson has later plans to assemble locally in India.
Speaking about the Indian market for heavy weight bikes, Anoop Prakash, Managing Director of Harley-Davidson India, said that last year as many as 700 heavy bikes of all brands (excluding Harley-Davidson) were sold in the country. The new dealership was formally inaugurated by film star N T Ramarao. John McEnaney, a Harley Milwaukee veteran has been brought to India to train the technicians in working on the 12 models sold in India. Harley-Davidson India.
Wow, didn’t see this one comming…..LoL
Holey Cow . . .
lance…the term is holy cow..which would of been funny if you didnt butcher the english language and type about a cow with holes in it! lol
Holy Cow – could not be more ironic…lol
How long before they are built in India and shipped to the States??????
WOW !
We now have Hogs, ONK ONK , a bunch of Sheep BAH BAH now a Cow. MOO MOO and a Harley Fart Bang Pop Pow. E.I E.I OH. LOL
What’s going to happen when the first Harley with aftermarket loud pipes start a bovine stampede.
The locals surround you and pummel you to a near death but finish you off when they find out that you have a cowhide seat.
It ‘looks’ like the writing is on the wall….. Probably wont be much longer the whole bike will be built there with American parts… Then start slipping in “there” parts… Guess they don’t have workman’s comp, or unions, or all the other BS over there….. LOL If they are only selling them I don’t really see an issue… when they start building them or putting parts made there on the bike, there is my problem….. First time I EVER get a customers new Harley in, and start tearing it down and I see any small sticker on any part of the bike that says ‘made in India’…. im going to blow a gasket !
Sad really……..
Dali-Davidson?
Hey low blow, what’s sad is that you and others are jumping to conclusions for no good reason. I didn’t see anyone on this blog assuming that Kevin Alsop was going to have his Big Bear Chopper bikes made in Europe or Russia when he started shipping his bikes over there and organizing dealerships to sell them. Why make an unwarranted assumption about Harley-Davidson? And in the spirit of not crossing your bridges until you come to them, blow your gasket only if it ever was to happen. It might one day, but until then, relax buddy.
Hey Doc there may be a bit of merit in low blows comment where HD, Honda others have battled the trade barriers in India in regards to importing their motorcycles of size into India and as I and others have stated before on this blog although some of the duties have been reduced there is still as it is in China and other countries the restrictions of selling and manufacturing mandates of foreign stand-alone ownership in country as well as in some cases in-country national partners to do so, etc..
Short version you may very well see Indian manufactured Harleys in the not so distant future initially to further the in-country growth of HD in India where it goes from there who knows, time will tell as five dealerships in a country of almost 2 billion taps not even a niche market proportionatly so for HD to substantially grow its market in India and reach/sell to the growing middle class and the required ablity of potential customer to afford same then in-country manufacturing to reduce manufacturing costs and avoid import duties even with the reductions in import duties is inevitable.
Food for thought
http://www.atimes.com/atimes/South_Asia/ID18Df03.html
http://www.jsonline.com/business/76646647.html
tradeandtaxes.blogspot.com
I feel sorry for those that have to barter with the Indians to sell these bikes. I would rather chew broken glass than deal with an Indian. Dot, not Feather of course.
Clarification, initially it will be assembly of imported parts to skirt the duties, as noted in excerpt from 2nd link above:
‘Consuming class’ growing
India’s “consuming class” is expected to swell from 370 million two years ago to more than 600 million by 2012, according to the Indian Council for Research on International Economic Relations. Given those numbers, international retailers continue to swarm the country with everything from clothing (United Colors of Benetton has numerous stores in Delhi) to motorcycles (Italian bike-maker Ducati expects to sell 100 units next year).
“The middle classes in India, the ones who have buying power, they’re only going to grow,” said Matthew Joseph, a senior consultant with the research council. “A significant portion of this group is interested in and can afford global premium brands.”
Excerpt:
The country’s tariff on heavy motorcycles, geared to protect Indian manufacturers and encourage foreign investment in local production, isn’t likely to come down anytime soon, Joseph said. If Harley is successful in the short run, Prakash predicted the company would import parts, which face lower duties, and assemble locally as it does in Brazil.
Even that step probably won’t bring Harley prices in line with the average Indian motorcycle, a small-engine bike – usually 150cc or less – that often costs around $1,000. The typical motorcyclist is interested in basic transportation: commuting to work and running errands.
Small bikes sell so well because Indian consumers remain practical, said economist Biswajit Nag of the Indian Institute of Foreign Trade. The country has a high savings rate, and economic decisions are often subject to family debates, even for independent adults.
Further note India’s middle class is as noted around 350 million consumers with buying power and projected to go over 600 million, Americas total population is closer to their bottom cusomer mark and will drop as baby boomers buying power and desire to purchase dimenishes.
Not doom and gloom just America has to export to these new markets and not just be an import consumer, a balance of need if you will and opportunities of/for customers abroad if trading/exporting/importing requirements/retrictions are balanced between countries.
Holy Hog!
I’m all for it! Be it built here and sold there or built there and sold there. As Grayhawk stated this country is expanding. They have a large Tech segment, bollywood is their Hollywood and there is only a growth curve for the unforeseen future as this country evolves.
Royal Enfields are the national motorcycle built in India they are now being exported them to America it only makes sense that we sell American made bikes in India. Think 20 year horizon as another opportunity for H-D to stay in the race and not go away.
if you read the profiles of each owner…. it is really funny, but not really. They are all extremely educated and hold degrees from some of the finest colleges in the united states (why is their education even relevant? Who cares!). They all seem to have “caught the bug” from visiting a HOG event while attending college in the US… again, who cares! These dealers descriptions read like stereo intructions, scratch that…. like a corporate software programming manual. I have a feeling these will be the most uninviting, boring, corporate structured motorcycle dealerships in the world.
FAIL!
Under Indian Law a tag must be permanently affixed to each unit sold in India that reads:
“NO COWS WERE INJURED, KILLED, OR SEXUALLY ABUSED DURING THE MANUFACTURE OF THIS MOTORCYCLE”
I crack myself up!
Over & Out,
Jeff
keep it up—–you guys are going to be pegged as anti-terrorist terrorists. you know,,,,the radical movement against radicals, or something like that….
i get confused
Harley Davidson enjoyed a revival in the early 1980s, just as an idealistic Rendezvous-like Baby Boom generation reached its “sweet spot” in the 20-40 age bracket. It prospered for two decades thereafter, but started to sputter in the third. (And the Persian Gulf War provided a lift to sales, not so much during the war itself, but thereafter, with a younger, military-schooled generation.)
Now, the company is facing the equivalent of the modern 1930s. If (as we believe), there is a major war, it may enjoy something of a revival as a result. Thereafter, however, it is likely to be all downhill for Harley Davidson to past mid-century, during the youth and midlife tenures of the Millennial (new World War II) and Homeland Security (new Silent) generations. It could enjoy its next revival when a new “Idealist” generation born in the 2020s and 2030s occupies the 20-40 age brackets around 2060.
MY last post. Not words of mine but I found the statement very interesting with point of view from an investor and his outlook on U. S sales.
Question is, How long will it take to have the impact [ India ] that we saw here in the States over the last twenty years ?
Well there is 1.2 billion people there should be a fare market.
At least they can walk all those HD Motorclothes right to the dealer without added cost for shipping..