Last year we said Harley Davidson was looking at India as a new potential market, all they had to do was get some agreements on tariffs, which are extremely high, plus figure out how emissions would be regulated.
US Trade Representative Susan Schwab will be visiting India in April and in what looks like a goodwill gesture before the visit, India seems ready to allow Harley Davidson access to their market. Previously, India had not allowed HD imports because they had no regulations for engines in excess of 500cc, now, however, they will allow the big bikes to come in under the Euro III standards followed in Europe.
The majority of motorcycles sold in India are in the 100cc category so Harley will have to establish itself among those looking for something other than a commuter vehicle and able to pay the price.
“Since the price of each of these bikes is over Rs2 lakh, the final cost, after taking into account an import duty of 60% (and various surcharges and additional duties on top of that, which result in an aggregate tariff of 103%) would be close to Rs4 lakh,†said the official. “At that price, people can buy a car in India,†he added.
The cheapest car available in India today costs Rs 2 lakh; by next year, the country will have one that costs half that, made by Tata Motors.
Harley-Davidson itself does not expect to sell too many motorcycles in India, according to the official, who claimed the company has given the government to understand that it hopes to import 2,000 of its products to India over the next three years.
Besides the small 100cc motorcycles produced there, India’s other manufacturer, Eicher Motor Ltd’s Royal Enfield division, sells about 32,000 motorcycles of 350cc and 500cc per year.
There is obviously a growing group of potential buyers in the country and if Harley can gain entry, they will likely want to try one of the new bikes, just like the residents of China who last year saw their first Harley Davidson dealership. But, unless there is some further work on tariffs they may remain too pricey for the majority of the market. Time will tell.
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todd says
So what, that’s about $4500? Is there a reason why a Harley costs 4 or 5 times as much in its country of origin?
-todd
kneeslider says
I’m missing what you mean. The Sportster at $6600 is Rs2.9 lakh, plus you add the tariffs and you get Rs4 lakh or thereabouts, plus the larger bikes would be even more. What’s the $4500 you refer to? Before we go too deeply here, I’ll be the first to admit I am not up on Indian currency conversion so I have to rely on what is said in the original article.
todd says
Sorry, I caught the Rs2 note not seeing that it was reflecting the US price (roundabout). Still I think it would end up quite a bit more than Rs4 unless H-D discounts quite a bit.
Do you think people in India will be satisfied with a “girls” / “beginner” / “sissy” bike? An 883 Sporty over here is never given much respect. I guess it’s all based on your frame of reference (i.e. an R6 Yamaha is an “entry level motorcycle!!!).
-todd
Dodgy says
The tariffs cover whole bikes, but apparently not parts.
I was once asked whether I could send a CRB600RR to India,
in pieces…
myron says
hi i already own a 04 sportster in dubai how and how much approx.will it cost me to bring it to india hd dubai charges dhrms 700 for servicing only.
Vick says
Hi
Just want to know by wht time we can see Harley coming to the Indian Market. and how much it can cost me if i import it or may be if a friend send it to me.
Santosh Krishnan says
I’m not sure why the Sportster is looked down upon coz it’s pretty good for a sub litre bike. But as it may be, that bike would be perfect in India … the bigger harleys wouldn’t really last very long in those awful roadways … but the sportster with some Indian tuning can be a hit at the right price.