Harley-Davidson India

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Harley-Davidson India
Founded2009 [1]
FateDue to low sales
relaunched by collab with Hero MotoCorp
Headquarters
Gurgaon, Haryana
,
India
Key people
Anoop Prakash
(Managing Director) [1] [2]
Products Motorcycles
Parent Harley-Davidson
Website harley-davidson.in

Harley-Davidson India was a wholly owned branch of Harley-Davidson, based in Gurgaon, Haryana, India. [3] Harley-Davidson India commenced operations in August 2009 and, in July 2010, appointed its first dealership, which is operated by JCBL Group. [4]

Contents

On 24 September 2020, Harley Davidson announced that it would discontinue its sales and manufacturing operations in India due to weak demand and sales. [5]

History

In 2007, U.S. Trade Representative Susan Schwab and the Minister for Commerce and Industry of India, Kamal Nath, had agreed that Harley-Davidson motorcycles would be allowed access to the Indian market in exchange for the export of Indian mangoes. [6] One Indian commentator called this "mango diplomacy." [7] However, India had not specified emission standards for motorcycles over 500 cc displacement, effectively prohibiting the import of Harley-Davidsons, along with most models of other manufacturers. [8] Plans to export to India were also held up by import duties of 60% and taxes of 30%, which effectively doubled the sale price. [9] A Harley-Davidson spokesman said the company thinks demand is high enough to overcome the tariffs, and (then) chief operating officer Matthew Levatich said they would continue to push for lower tariffs. [10] Levatich has since been promoted to chief executive officer. [11]

In 2009, Harley-Davidson announced plans to establish a subsidiary to be located in Gurgaon, near Delhi. [12] Plans to enter the Indian market were delayed for several years, due to high tariffs and emissions regulations. [13] The pollution regulations have recently changed, but the tariff problem is yet unresolved. [10] Also in 2009, Harley-Davidson India established its annual rock music tour – Harley Rock Riders. [14]

Harley-Davidson announced it was introducing 12 models in India from the range of five motorcycle families, namely Sportster, Dyna, VRSC, Softail and CVO. The motorcycles were completely built units and were to be imported to India, thus attracting a tax over 100% in the price range of 695,000 rupees and 3,495,000 rupees ex-showroom. The bookings were scheduled to start in April 2010 and the motorcycle delivery was to commence on June 2010. To begin with, Harley-Davidson would have five dealerships (Delhi, Mumbai, Bangalore, Hyderabad and Chandigarh) with the aim of increasing the dealerships to more than 20 in the next five years. [15]

The United States ambassador to India, Timothy J. Roemer, attended the opening ceremonies for H-D India's Gurgaon headquarters on 6 May 2010. [10] In November 2010, Harley-Davidson said that it will start an assembly facility for complete knock down (CKD) kits of its motorcycles in India by the first half of 2011, making it only the second CKD facility outside the US. [16]

In 2011, the company set up an assembly unit at Bawal, Haryana. In 2011, Harley-Davidson India began the assembly of its Sportster line followed by the assembly of the Dyna line in 2012 and Softail line in 2013.[ citation needed ]

In 2014 Harley began production of their Harley-Davidson Street 500 and 750 models in India for domestic sales and export, at Bawal, Haryana India, its only manufacturing facility outside of the US. [17] Also in 2014, the company organized five big rides across the north, south, east and west zones along with the India H.O.G. Rally that takes place every year in Goa. [18]

On 24 September 2020, Harley Davidson announced that it would discontinue its sales and manufacturing operations in India due to weak demand and sales. The move involves $75 million in restructuring costs, 70 layoffs and the closure of its Bawal plant in northern India. [5]

The collaboration between Hero MotoCorp and Harley-Davidson has set the stage for an exciting development in the Indian motorcycle market. These two giants have joined forces once again to introduce a cost-effective motorcycle that's bound to catch the eye of bike enthusiasts nationwide. [19]

Products and operations

Harley-Davidson offered a range of 11 models in India from each of its six platforms – Sportster, Dyna, Softail, V-Rod, Touring and Street – in addition to a full range of parts, accessories, and general merchandise, available through authorized dealerships. The company had 29 dealership facilities across India: New Delhi, Gurgaon, Coimbatore, Chandigarh, Mumbai, Hyderabad, Bangalore, Chennai,Ranchi, Kochi, Kolkata, Ahmedabad, Indore, Pune, Goa, Guwahati and Jaipur etc. [20] [17] The Street platform was jointly manufactured at Harley-Davidson's US and India plants. The Street 750 was also exported to Europe and Asia markets from India. [17] Harley-Davidson India also sponsored the country's Harley Owners Group (H.O.G.). [21]

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References

  1. 1 2 "Harley-Davidson's leadership team for India", The Hindu, 4 November 2009
  2. ↑ "Harley Davidson seeks 25 pc growth; targets small cities", EconomicTimes, 13 May 2012
  3. ↑ Vikram Gour (27 August 2009), Gurgaon is Harley-Davidson India Base, Zigwheels.com
  4. ↑ "Gurgaon is Harley-Davidson India Base!". ZigWheels.com.
  5. 1 2 "Harley-Davidson to exit world's biggest bike market". BBC News. 25 September 2020. Retrieved 25 September 2020.
  6. ↑ "India allows import of American cult bike Harley Davidson". India Times. 13 April 2007. Retrieved 16 August 2022.
  7. ↑ "Mangoes are symbol of friendship between India, US: Ambassador Sandhu". Times of India. 20 May 2022. Retrieved 16 August 2022.
  8. ↑ "India Swaps Mangoes for Harley-Davidson Motorcycles". World Press. 10 May 2007.
  9. ↑ "Harley shelves India plans, citing duties". Mint. 1 May 2007.
  10. 1 2 3 "Harley-Davidson to sell motorcycles in India - The Denver Post". 24 September 2015. Archived from the original on 24 September 2015.
  11. ↑ "Harley-Davidson is doing pretty well overseas". Wall Street Journal. 1 March 2017.
  12. ↑ Bellman, Eric (28 August 2009). "Harley to Ride Indian Growth". Wall Street Journal. Archived from the original on 18 August 2015. Retrieved 28 August 2009.
  13. ↑ "Trending stories on Indian Lifestyle, Culture, Relationships, Food, Travel, Entertainment, News & New Technology News". indiatimes.com.
  14. ↑ "Harley Davidson announces the fourth season of Harley Rock Riders". afaqs!.
  15. ↑ Harley-Davidson India Intros Motorcycle Lineup MotorcycleUSA.com
  16. ↑ "News By Industry". The Times Of India. 2 November 2010.
  17. 1 2 3 "Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News". The Economic Times.
  18. ↑ says, Hameed Anu (17 January 2014). "Harley-Davidson National HOG Rally 2 in Goa: Report and Images". motoroids.com.
  19. ↑ Raj, Neha (26 September 2023). "Harley-Davidson Launches 210cc Motorcycle at a More Affordable Price Point Than the Royal Enfield Bullet". PUNE NEWS. Retrieved 1 October 2023.
  20. ↑ "Harley-Davidson launches 'Fat Boy Special' at Rs19.7 lakh". Mint. 4 August 2011.
  21. ↑ "Harley-Davidson to host first HOG Rally in India". ZigWheels.com.
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