Harley Davidson targets ten-fold jump in India sales by 2016
MUMBAI: Enthused by the strong response for its bikes, Harley Davidson, the iconic motorcycle manufacturer from US is aiming for a ten-fold increase in sales in India by 2015-16 to 10,000 units a year and sees India amongst its top two markets in the Asia Pacific region by then.
ET learns, the company has already revised its target upwards for 2012 and sees volumes doubling to 2,000 units this year. And this is, despite an increased tax in the recent budget and not that great market sentiment, the demand of Harley remains unaffected says the senior company official.
Anoop Prakash, managing director, Harley Davidson India told ET, "We are surprised by the enthusiasm we have seen with respect our brand. And for us, moving price down through CKD is more important as it makes our bikes more accessible. Right now there are other Sportster models and Dyna models that are not on offer in India yet, so we are considering assembling them in India."
After a good response to two of its recently launched motorcycles under the Dyna family at the Auto Expo, the super bike maker is planning to add one more model for assembly under the Dyna range this winter at its plant in Bawal, Haryana.
This will take the number of models assembled in India to 6, out of its portfolio of 15 motorcycles. The price range for a Harley Davidson motorcycles in India ranges from Rs 5.6 lakh to Rs 35 lakh.
The company is also increasing its footprint with the plan of setting up of three more dealerships during 2012 in Kolkata, Kochi and Jaipur, taking the company's network to 10 by the end of the year. The goal is to double its reach to 20 locations by 2015-16.
Harley-Davidson Motor Company, a subsidiary of Harley-Davidson Inc, produces heavyweight Custom, Cruiser, and Touring motorcycles.
The Super bike market above 800 cc stood at 1600 units in 2011 and it is growing at 40-45% per annum and experts say, it is expected to grow faster with players like Harley getting good response from the market.
""Since the time Harley formally entered India in July, 2010, we have sold over 1,000 bikes, which is a good number, and we are confident of India also contributing significantly as Harley-Davidson targets 40 per cent of sales to come from outside of the US by 2014," he said.
In 2011, 34.7 percent of the Harley-Davidson motorcycles shipped went to international markets, compared to 20.1% in 200. The Company plans to expand international dealer network by 100-150 dealers by 2014.
Source: Harley Davidson targets ten-fold jump in India sales by 2016 - The Economic Times
So, 6 models are to be assembled in India now. This company has some serious Biker respect, even among those who're not into Cruisers like me. I somehow fear this company will make me a Cruiser lover sooner or later.
As for their target, the common guy would think that a 10 times sales increase is not possible for any company, but again we at Xbhp are no common guys. The premium bike market is very small, and with more dealerships over time, it should expand. And to add to it, it seems Harley was recently going for a smaller economical bike, more details of which are currently scarce.
If they do manage to get an 883's engine into an economical India made setup, it might just touch the target it has set for itself.
Yes, I know tax rates and inflation have gone up, but so have salaries, land rates and crucially, finance options. What happens actually remains to be seen.