Harley Davidson, the company which launched twelve of their motorcycles in India at the 2010 Auto Expo is thinking over a plan for assembling their bikes in India instead of importing them as completely built units(CBUs) in the country.
If this plan is finalized it would result in lower duty being imposed on the Harley Davidson bikes sold in India as they would be imported as completely knocked down unites(CKDs) instead of CBUs which involve heavy duties. The dismantled units will be shipped from the manufacturing plant in US and will be assembled back at a plant here in India.
As per the sources, this proposal is still being considered and no concrete decision has been taken on it as yet. The first batch of motorcycles will be shipped to India as CBUs and may be later on, an assembly unit might be set up.
As of now the company has to pay around 80% of the cost of the bike on import duties and other taxes. Bringing the bikes as CKDs will reduce these duties to around 30% which will further help in the overall cost reduction of the bikes being sold in the country.
Considering the fact that the Harley Davidson bikes cost from around Rs. 6,95,000 to whopping Rs. 34,95,000(ex-showroom New Delhi) this relaxation of duties will sure lure more customers if happened.
The country lags behind when it comes to proper cruiser bikes and the entry of Harley Davidson is a bright ray of hope for the Indian bike enthusiasts.
Wow the price difference is too huge! More than 4 times the actual price around 5 actually. But will people in India prefer to spend so much on bikes. We should consider ourselves lucky if we spot this on road.
I just heard that the first Harley-Davidson dealership in India opened in Delhi some days back, and even in Hyderabad. A couple of bikes have also been delivered. I am waiting for the one in Mumbai to open, so that I can go pay them a visit sometime. Delhiites and Hyderabadis, we need you people to go get us some pics quickly!
@ Amaan: May be our official Road tester Akash will pay a visit to TD Harley Davidson bikes & give us a report.
Even i had seen & advertisement in Times Of india that no one should imitate the logo of HD.
I was thinking why all of a sudden the AD came.
Now i know the reality.
Harley Davidson is planning to assemble and develop their range of bikes in India.
Going forward, we’re going to be looking at product development at more international bases. What’s the product that customers in different countries want? This will be in the third phase of our growth strategy in India—the first two being the launch with CBUs (completely built units) and the assembling of CKDs (completely knocked down kits).
Harley-Davidson is definitely looking to setup an assembly unit for its Indian operations, but it first wants to ensure that there is a sufficient sales volume of its bikes, in order to justify the high investment that an assembly unit will require. The company believes that it will reach a financially viable sales volume figure for an assembly plant over the next two years.
Harley-Davidson currently imports its bikes into India as completely Built Units (CBU’s), paying 80 % import duties for the bikes. The company could bring this figure down to 30 % if it starts to assemble its bikes from Completely Knocked Down (CKD) kits sourced from abroad. (Courtesy: IMB)