Harley May Ship it's Motorcycles As CKD in India
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.