PostHeaderIcon Harley may assemble motorcycles in India

The motorcycles would continue to be manufactured in the US before being dismantled and shipped to India in completely knocked down kits.

By Samar Srivastava

New Delhi, India – January 20, 2010 – (Motor Sports Newswire) – The motorcycles would continue to be manufactured in the US before being dismantled and shipped to India in completely knocked down (CKD) kits. They would then be put together at a company factory in India before being sent to retailers, according to a person familiar with the plan.

The proposal is still under consideration and it is hard to say what decision the firm will take, said the person, who didn’t want to be named. However, the first lot of motorcycles being shipped to dealers starting April would be imported as completely built up (CBU) units as setting up a factory, albeit just for assembly, could take upwards of a year.

“Our plans for the market are to begin importing a line-up of 12 Harley-Davidson motorcycle models for sale this summer, when our five dealerships open throughout the country.,” said Anoop Prakash, managing director of HarleyDavidson India , in an email reply to questions sent by .

“Harley-Davidson will continue to explore options for the market and lay the appropriate groundwork to grow and develop our business in India. This includes listening to what is important to riders in India and considering all of the opportunities for how to best address the needs of India’s motorcyclists,” he added.

Prakash did not respond specifically to questions on whether the company was considering setting up an assembly unit in India.

The 12 models Harley-Davidson launched for the Indian market earlier this month would retail for Rs6,95,000-34,95,000 as the firm would have to pay around 80% in import duties and other levies. By assembling the bikes in India, the levies could come down to as low as 30%. Other auto firms such as Volkswagen AG’s Audi unit have also adopted this strategy to reduce retail prices. Audi assembles the A4 and A6 models at Skoda Auto’s factory in Aurangabad, Maharashtra.

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