After all of the recent reports of new agreements to allow motorcycles over 500cc to be imported into India which would allow Harley Davidson, among others, to enter the market, Harley has announced it will put an indefinite hold on plans to set up shop over there. The recent changes which ostensibly opened the market applied the Euro III emission standards to larger engines. Once that hurdle was cleared it looked like the Harleys were on their way.
Unfortunately, the one thing India did not change was their incredibly high 60% import duty and 30% tax, essentially doubling the price of the imported bikes. After examining the potential size of the market at that price it looks like Harley Davidson has decided not to enter the market after all. Average industrial import tariffs in India, by comparison, are about 10%.
India, and many other countries, keep import duties high to protect local business by keeping competitive products out. However, in India’s case, there is no domestic company producing anything like a Harley Davidson. Most Indian bikes are in the 100cc and 125cc range while Royal Enfield produces the largest Indian made motorcycle, the 500cc Bullet.
If India lowers import duties, the issue may be brought up again, but for now, the Hogs stay home. It will also be interesting to see if any of the other manufacturers considering the Indian market decide to follow through or, like Harley, put the brakes on their plans, too.
Link: livemint
Related: India Set to Allow Harley Davidson Imports
Related: Harley Davidson One of Many Headed to India
Richard says
“India, and many other countries, keep import duties high to protect local business by keeping competitive products out. However, in India’s case, there is no domestic company producing anything like a Harley Davidson.”
Keeping out competitive products is not the only reason for high import duties. Perhaps they also don’t like the Hells-Angels-wannabe-with-obnoxiously-loud-pipes culture.
coho says
Maybe it’s a karmic balancing to make up for the high US bike import tariffs of the ’80s.
todd says
I agree with Richard. Recent Baliwood incidences prove India is intent on keeping its image squeaky clean. Intruducing typical H-D culture does nothing to benefit the country.
-todd
chris says
why don’t they just set up a factory IN india? car companies have been doing for a while now.
humanoid says
This is a textbook case case of how protectionism hurts the consumer. The Indians are protecting a domestic market segment that doesn’t even exist yet. So it will be further retarded- assuming it ever does develop. I hope there aren’t many Indians who want a 1000cc+ V-twin bike, because it looks like they’ll have to do without one for the time being.
GenWaylaid says
Now if somebody started building Indians in India, THAT would be confusing.
todd says
I think if there truly was a market for 1000cc+ motors in India, twins or whatever, then they would exist already (or 500cc+ even). I doubt Royal Enfield or Hero Honda would pass up the opportunity.
Harley isn’t hoping to sell bikes, it’s t-shirts, scull caps, and leather tasseled buttless chaps on which they bank their success.
-todd
Aman Narwal says
guys im from india and i can tell how much some of us have been waiting for H-Ds’ and excluding the bike enthusiasts there is a bigger market for these bikes coz a lot of indians want to show that how rich they are. But besides that as todd said harley must must be hoping on selling their merchandise ,which most ppl can afford.
Pravin says
The Royal Enfield BUllet Is THe best Classic Bike On THis Planet IN THe Range of 350-500CC Segment.The Royal Enfield Is Also Planing for a 1000CC Twin Which is still in the R&D stage.. It is the The Sturdiest bike and can last for years if handeled properly…I Feel Royal Enfield wants to come in direct competition with the HArley I guess patience is required because when you ride a Royal Enfield,its like the best feeling you can ever have..ride it and see it
NK says
Its a sad and disgusting thing that our Political will is so weak that it cannot stand up to a few special interest industrialists like Bajaj and the Munjals of Hero Honda or the dolts from Enfield. Please Pravin – get real. I am from India too – yes, the Bullet is a good old nostalgic bike – fun and a work horse. But have you compared old bikes to new ones ? Check out the 1970’s or 1960’s bullet compared to todays tin-pot bullets on the road. You might be surprised my friend. I owned BSA’s and Nortons etc – they were miles ahead in build quality. But lets talk real. The quality and fit and finish of modern bikes like the Harley and BMW are light years ahead of the Bullet and anything India produces. WHY stop a few bikers here who want those vehicles fro having them ?! by putting foolish import duties you out price the whole thing once and for all – thats like saying NO but not saying it. Its depressing !
The Harley is an icon – something that India cannot and will never be able to produce – Enfiled ? 1000cc twin AHHAHAHAHAHAHAHA !!! Dream on sir. These jokers at Madras took something like 10 years to shift the GEAR BOX to the correct side as the clutch !!! and then made a song and dance about their achievement ! They could not stop their engines from leaking – so to do that they had to go to AVL and launched a new bike called Electra with an AVL designed engine – so that they could stop OIL LEAKS ? From the 50’s that is the extent along with some small other things that their R&D has taken us. What are you dreaming about bigger capacity bikes . They will be nothing but re-bored versions of the 350. Same with Bajaj and all the others. Not one of our Indian boys has produced even a decent TWIN over 50 + years of manufacturing in India – Whats the point in this whole BS exercise . Its old thinking and protectionism – but in this case with nothing to protect. I endorse protecting indian industry and investment up to 500 cc – but beyond that – WHY ?!!!!!!!!
NK says
To answer Chris : A good idea if given the necessary volumes to support such a venture. But that is not possible from the indian market. If Harley made India an export hub to ASEAN IMEA and maybe even places in Europe then yes – but I sincerely doubt that ever happening. Harley would probably not take jobs out of Milwaukee WI as that is their culture – Midwest American lifestyle and iconic values are not for sale. I think that is what makes Harley such a humdinger in the US of A . If Harleys factories in WI are running to capacity AND they need assembling plants in other places to tap Asia and Europe – Gulf and Africa then I think India is the best and most logical choice.
Jay says
Harley machines will definitely be market catchers & snatchers, but the issue is import duty and taxes. This can be taken to protect Indian Bike manufacturers who had been blindly adopting Japenese technology of engines. No offences, but dear, engine is not the only thing, frame, electronics, suspensions, tyres, etc..etc.. are also need to be revolutionized. Which they fail to do.
So if a person can purchase, he goes for import bikes. Now here is the catch, these import bikes are down tuned before selling in Indian market. I mean, whoever had driven bike at 100+kmph knows, we don’t need 140+kmph machines due to Traffic, infrastructure, driving sense of others, rules etc..etc..
So, if Bajaj and Hero Honda want, they can build an assembly line and manufacturing of 1000cc engines (already Yamaha, Suzuki, Honda have many), but then what?
The same thing is happening to Royal Enfield, please understand that bullet engine is low rpm engine, thats why it gives a mileage of 40kmpl being 350cc for example. It is not developed to achieve peak speeds but achieve peak distances that too with comfort and driving pleasure for roads if available.. 🙂
I hope this clarifies, also, for Harleys, they must have put it on hold considering market statistics of power machines and methods people adopt to purchase imported bikes.