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Running on Fumes

Why Harley-Davidsons in India?

Wednesday, January 06, 2010
Harley-Davidson has taken some hits in 2009, with diminished sales and job cuts. Not to mention the discontinuation of Buell and big operating losses with its financial services division. So why would Harley-Davidson now decide to break into the Indian market?
The 2010 Harley-Davidson Electra Glide Ultra Limited bundles together many popular options and adds a bigger 103 cubic-inch Twin Cam engine but is it built to shred  Yes!
Big rumbling V-Twins on the streets of Mumbai or Delhi? Harley-Davidson hopes it becomes a regular phenomenon.

One hurdle the Motor Company has to deal with is a high import tariff for large-displacement machines in India, which effectively doubles the price. So the new Indian H-D lineup announced today will range from $15 – 76,000, placing them well out of reach of the GDP per capita figures for the nation - which fluctuates between $1000 to $1100 depending on the source.

The potential, however, is huge. India is the “I” in the trendy emerging market acronym BRIC (Brazil, Russia, India and China) and its economy continues to grow. Also on the rise is its wealth and taste for luxury items. Another , India is also already a huge motorcycle market, the second-largest in the world behind China. Honda cites 7.9 million two-wheeled sales in India for Jan-November of 2009, with December still to go.

Imagine if Harley-Davidson could eventually scrape out a 1% market share of new annual sales. That’s 80,000, well worth the investment, it would seem. With more than a billion consumers, the promise of Indian prosperity has lured Ducati to the Asian country as well.

Definitely a story we’ll be watching this year.
Post Tags: Harley-Davidson India, H-D in India
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Comments
HBA -Mr November 12, 2010 08:15 AM
I agreed. It makes no sense at all. In fact I think Harley will lose the customers it has in the US by moving to India. I don’t want to ride a Harley which is made in India and don’t want the image goes with it. I have 3 Harley's and a Jeep which is decorated with Harley decals and Chromes and jackets and until now I was proud to have them, but it is all changed. I am going to get me a real Indian Motorcycle which is made here in the USA. I am not going to ride a Harley made in India and feel like a rebel. That is stupid.
Wellington -HD in India January 7, 2010 10:39 AM
“Honda cites 7.9 million two-wheeled sales in India for Jan-November of 2009, with December still to go”. And how many of those Hondas were $76,000? Honda also sells a lot of cars in America so does that mean Ferrari will sell a lot of cars in America? That is how wrong this comparison sounds.

“With more than a billion consumers”, Hey, there is 300,000,000 consumers in America and Harley can only sell a little over 220,000 and 85% of the billion Indian consumers you talk about can barley afford food and shelter let alone a $76K hog. “the promise of Indian prosperity has lured Ducati to the Asian country as well”. Ducati will sell bikes that the Indian people actually want and can afford. Remember Ducati started out making small commuter bikes for war torn Italy so a 250cc monster could easily be on the menu. In other words Ducati will do what the other successful manufacturers have done in countries like India and that is make bikes that make sense for that geographic demographic instead of peddling the same crap to every market like Harley does and waiting for them to buck up for their lack of manufacturing flexibility and innovation.

So why is Harley in India? Harley is desperately desperate. Domestic sales are down and global sales because of the economy and because their one size or one type of bike fits all isn’t working. Now Harley is going to give it a go in India because they have nothing left to lose.
irksome -LMAO January 6, 2010 08:25 PM
I really think I'm gonna sh!t myself from laughing. Yet another sign of HD's utter stupidity. "Hmm... our US market is getting old and buying RVs, we have less than zero interest from younger buyers... let's sell our Road Pigs at double the price in a predominantly poor country!" Still mourning the death of a REAL American motorcycle company: Buell! Harley is a marketing firm that happens to sell motorcycles.

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