Author Topic: Harley-Davidson To Expand into India (Read 8205 times)

Slider · **on:** August 27, 2009, 05:03:29 pm

Courtesy of Harley-Davidson
Thursday, August 27, 2009

Harley-Davidson, Inc. (NYSE: HOG) announced today its plans to formally enter the motorcycle market in India, where it expects to start selling its iconic motorcycles in 2010. The company has established a subsidiary to be located in Gurgaon, near Delhi, and has begun the process of seeking dealers.

Harley-Davidson Motor Company President and Chief Operating Officer, Matthew Levatich, is an invited speaker at the Society of Indian Automobile Manufacturers annual convention on August 28, and will provide further details on the company’s plans then.

“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.”

The company’s current approach is to import its motorcycles, accessories and riding gear, and it will continue to evaluate how best to evolve its approach to the market as Harley-Davidson’s business in India grows.

“India is important to our long-term vision of being a truly global company,” said Harley-Davidson Inc. President and Chief Executive Officer Keith Wandell. “We are committed to India for the long term, and we are focused right now on establishing a strong foundation.”

India is the second-largest motorcycle market in the world, with sales dominated by small, inexpensive bikes used as basic transportation. However, India’s rapidly growing economy, rising middle class and significant investment in construction of new highways have opened the door to leisure motorcycle riding.

“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.”

Harley-Davidson is the global leader in cruising and touring motorcycles and ranks as one of the strongest brands in the world, with motorcycle sales now in more than 70 countries.

“Harley-Davidson fulfills dreams for people around the world through life-changing products and experiences,” said Levatich. “The Harley-Davidson brand represents self-expression, adventure, the freedom of the open road, and belonging to a global community – a family of riders. We know the relevance of the Harley-Davidson brand rings true in India just as it does in other markets around the world.”

The company will focus its initial steps in India on growing the Harley-Davidson brand through a variety of consumer experiences and on establishing a local dealer network.

The Harley-Davidson subsidiary in India will be led by Managing Director Anoop Prakash, who said the company has begun the process of identifying initial dealers in Mumbai, Delhi, Bangalore, Hyderabad and Punjab State.

“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,” said Prakash.

http://www.motorcycle-usa.com/568/4423/Motorcycle-Article/Harley-Davidson-To-Expand-into-India.aspx

The Garbone · **Reply #1 on:** August 27, 2009, 05:07:26 pm

Ehhh,,, I bet a Harley 500 single would be a huge hit over there...

dogbone · **Reply #2 on:** August 27, 2009, 05:20:29 pm

Not if it said BUELL

1Blackwolf1 · **Reply #3 on:** August 27, 2009, 05:28:27 pm

But would be a good platform to start at. Shucks, to bad they aren't building it anymore..except for the compact version. Will.

Thumper · **Reply #4 on:** August 27, 2009, 05:44:38 pm

Well I guess it was going to happen sooner or later. With this severe economic downturn American labor has finally gotten so cheap so as to make even a Harley market affordable to the Indian populace...

I guess people in countries with money wouldn't lower their standards to look at any of those American-made bikes.

OK, maybe I'm a cynical pessimist...

rideOn · **Reply #5 on:** August 27, 2009, 05:56:07 pm

about this time last year, india was producing more millionaires per capita than any other country....makes sense to sell luxury bikes in a bike country. anyway, up harley, i'm going indian when i finally decide to commit to luxury 'name brand'

Kevin Mahoney · **Reply #6 on:** August 27, 2009, 06:32:51 pm

It seems that they expect to sell 20-50 bikes nationwide. Besides the Harley bravado in the release, this will be very low volume. They intend to sell the 883 which is what they mostly sell in Europe as well. The cost is so high that the market will be limited to Bollywood types and those with too much money. The infrastructure of the roads does not make this a great bike for traveling. But they want a foothold in India which is wise. In order to have a chance at all they need to either assemble units or manufacture them in India because of duties. They had approached Enfield about assembling bikes for them, but REM declined as it did nothing for their brand. They also had talks about using the REM dealer network but again they really brought nothing to the party as far as RE was concerned. RE and Harley have a very long time relationship so we may not have heard the last of this.
India relaxed it's emission rules for to allow Harley to enter India in exchange for the US allowing India to sell Mangos in the US. (I am not making this up).

The Garbone · **Reply #7 on:** August 27, 2009, 06:38:18 pm

MMMMmmmm, I like mangos...

StephenCB · **Reply #8 on:** August 27, 2009, 06:41:08 pm

Quote from: 1Blackwolf1 on August 27, 2009, 05:28:27 pm

But would be a good platform to start at. Shucks, to bad they aren't building it anymore..except for the compact version. Will.

About the 2010 Blast video - Is it just me, or did that guy look like he was about to cry on a few occasions in the video?

Slider · **Reply #9 on:** August 27, 2009, 06:50:06 pm

Mangos, huh? I'm all over that fruit, baby.

So it sounds like making money is more important to them than air pollution? Mangos... I mean, money is the root of all evil.

Ice · **Reply #10 on:** August 27, 2009, 07:22:37 pm

Mangorita's all around!!!

Ice · **Reply #11 on:** August 27, 2009, 07:23:59 pm

It's not like H-D hasn't done this sort of thing before.

http://www.motorcyclemuseum.org/classics/bike.asp?id=81

1Blackwolf1 · **Reply #12 on:** August 27, 2009, 08:35:28 pm

Wonder how much those Mango's are going to list for...Will.

The Garbone · **Reply #13 on:** August 27, 2009, 08:53:17 pm

Quote from: 1Blackwolf1 on August 27, 2009, 08:35:28 pm

Wonder how much those Mango's are going to list for...Will.

$1 a lb, except for the HD-branded ones, those are $150 a lb.

REpozer · **Reply #14 on:** August 27, 2009, 09:34:35 pm

H-D folks are marketing geniuses , next to McDonald's.

H-D was able to image target Accountants, lawyers and doctors into thinking they were Marlen Brando on the weekends with the purchase of a H-D,while down grading other MC company's.

For people that don't have a motorcycle, H-D made a ton of sales in the apparel arena.

I can remember an H-D dirt bike in the 70'c. I believe it was made for H-D by Bernelli

I wouldn't be surprised if H-D has some plans to introduce the Buell 500cc or even
make a 350cc to siphon off sells from REM on there own turf.

Think about it , A 500cc Buell , badges with " Machismo Masher" and some leather danging off the handle bars extera chrome,....walla, a new kid is in town.

If I was REM I would be concerned.

r80rt · **Reply #15 on:** August 27, 2009, 11:18:01 pm

Luxury name brand? I have one, it's called a Royal Enfield C5 Bullet Classic!

Slider · **Reply #16 on:** August 27, 2009, 11:25:50 pm

Harleys for mangos...

http://www.indiaenvironmentportal.org.in/node/21547

Ice · **Reply #17 on:** August 28, 2009, 01:00:58 am

H-D is a world wide company sourcing many of their parts outside of the U.S..
They ceased being a 100 % made in America product line company when they sold to American Machine and Foundry.
Weather or not they decide to quietly source parts through their Indian subsidiary remains to be seen.

I would consider buying H-D mango's as long as they had a Made in India sticker on them

1Blackwolf1 · **Reply #18 on:** August 28, 2009, 11:37:40 am

Quote from: The Garbone on August 27, 2009, 08:53:17 pm

$1 a lb, except for the HD-branded ones, those are $150 a lb.

Dang proprietary fees. Will.

mbevo1 · **Reply #19 on:** August 28, 2009, 09:38:36 pm

Just noticed "Harley Rumbles into India" made the front page of the Wall Street Journal today... guess I'll have to read it and see how the "experts" view it...

Mike and Stumpy in Michigan

Kevin Mahoney · **Reply #20 on:** August 29, 2009, 07:27:25 pm

It's going to be fun watching Harley trying to protect their trademark in India. At present they will bust a mom and pop tent store at a motorcycle show for selling a 1/4 inch pin that they think was not licensed. Grandma and grandpa will find themselves face first in the dirt with handcuffs on if the Harley police think they have infringed on their name. (To be fair, enforcement is part of what you have to do to really protect a trademark in the US and yes they do comb through stalls at motorcycle rallies etc).
They could send every employee that they have recently laid off to India to police this and not make a dent. Their coming is going to be great for T-Shirt vendors etc. in India. The Black market is just a fact of life in India.
If they sold a smaller bike that was manufacturered in India so it was competitively priced they could make a mark in the market. The duties are outrageous otherwise. Imagine the concept of a government protecting it's manufacturing base. We have a far better plan here, in the US, We tax manufacturers to death, make "business" a public enemy and then allow all the countires of the world who do not allow us to sell freely in their countries to sell here with no restrictions. Brilliant. I am a free market system person, but the free market does not exist outside of a handfull of places. Any US manufacturer who wants to sell goods in India and many other countries pays a very heavy price which keeps them from being competitive and our government supports this practice
The new UCE engines use hydraulic valve lifters and gaskets made in the US and they pay a horrible import tax to bring them into India, because they are not made in India, while we allow anyone to sell anything here mostly duty free.,