Assembling Of Bikes In India By Harley David

By By: Vicky.in

Harley David Bike
The American bike maker Harley-David is setting up an assembling unit in India to reduce the cost of its bikes by 20-25 percent and to penetrate the premium bike market in the country where the Japanese players dominate.

The facility, to be installed at Bawal in Haryana, will be formally commissioned to assemble the bikes during the second half of the next year with the initial capacity of 200 annual units. The facility, in a spread of 70, 000sq.ft, will be allotted to assemble the much demanding sports model, Sportster, for which the components will be derived from the company" s apex plant in the US.

The MD for the Indian wing of Harley-David said the new initiative is mooted to bolster the competitive spirit for the premium bikes in India. The new facility will incur an investment of tens of millions of dollars and the exact price of the models will be fixed once the plant starts functioning fully, said its MD.

The move is to avail the tax-deduction upto 60 percent for the CKD components against 110 percent levied on imported kits. Hence, the company believes that the strategy to reduce the cost would yield more volume in the second largest two wheeler market in the world.

Further, the youth sector is on the anvil of securing a vehicle of its stature and style, abled by the increased income sources. The estimate for the super bikes last year was 1000 units but the response had been encouraging with the rise by 20 percent this year, where the Japanese brands from Suzuki, Yamaha and Honda contributed much, of which Suzuki"s Hayabusa tops the table.

Kawasaki, through the aid of Bajaj India and the Italian bike Ducati too have good potential in the Indian bike market. The response for designer bikes of 800cc + is too sharp as the German BMW too entering on the road to this super bike segment. BMW, with its Motorrad, is likely to pose competition to Harley-David, which has already launched 12 models in the country since this July.

The existing models are in the 883cc -1500cc range at the price tag of Rs 7.8 - Rs 38.7 lakhs. The target for Harley-David for this year is 100-200 units but there is no official figure about the units already sold.

Article Published On: Thursday, November 4, 2010, 16:39 [IST]
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