When Barack Obama last visited India, he managed to propose a plan which will see Harley Davidson set-up their manufacturing unit in India. If all goes according to Obama’s plan, India will become the motorcycle manufacturer’s first unit outside the American continent. Besides having facilities in US, Harley Davidson also has a unit in Brazil.
Currently, Harley Davidson Motorcycles are available in India as CKD’s. The import duty on CKD units levied by Indian Government is 60% and because of which we get the cheapest Harley bike, Superlow at Rs 5.5 lakhs in India.
Once this proposed plant is set up, 60% of the parts will be locally acquired, bringing the import duty down considerably. The same bike, Harley Davidson Superlow will then cost just Rs 3.3 lakhs or lesser. This new plant will be set-up in Bawal, Haryana and will also act as a mother plant for other Asian countries.
Around 200-250 Harley’s are sold in India every month currently. A Harley vendor on the condition of anonymity stated, “The company has asked its global vendors in the US and Thailand to set up manufacturing units in Bawal. It has also given expressions of interest to Indian component makers for supply of vehicle parts to its Haryana unit, which would commence its operations in mid-2011.”