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Thread: Harley Davidson targets ten-fold jump in India sales by 2016.

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    Moderator Samarth 619's Avatar
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    Smile Harley Davidson targets ten-fold jump in India sales by 2016.

    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.
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    with increase in number of dealerships across country and increasing awareness and most importantly --some amount of advertisement, they can go somewhere near to their target.

    but to actually achieve their target, what is required is-- a somewhat lower capacity bike than existing line-up and significantly cheaper than current models on sale.

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    Another article tells us how exactly (they think) they will achieve the target of ten fold sales jump by 2016.

    ---
    After opening its dealership in all metro cities, iconic US-based motorcycle maker Harley Davidson is now targeting smaller cities and towns to drive an annual growth rate of 25 per cent in India.

    "The next step will be the tier-II and tier-III cities and towns. We need to expand there as there is a lot of demand in places like Bhubaneswar, Raipur, etc," Harley Davidson India managing director Anoop Prakash said.

    As part of its strategic dealership expansion drive across the country, the company on Sunday opened its dealership in Kolkata, the first in eastern India. Besides other metros, the company already has dealerships in Ahmedabad, Bangalore, Hyderabad and Chandigarh. "By the end of this year, we will be in Kochi and Goa too. Later on, we might go to Jaipur and Bhubaneswar as well," Prakash said.

    With more than a thousand Harley Davidson bikes on Indian roads now after the company started their India operations in 2010, he said the company has a 40 per cent market share in the premium bike segment in the country.

    "In the next five years, a year-on-year growth of 25-30 per cent looks sustainable," he said.

    Famed for its distinctive designs the world over, Davidson produces premium heavyweight custom, cruiser, and touring motorcycles.

    The base model starts at Rs 5.60 lakh. To develop biking culture in India, the management has also set up the Harley Owners' Group in many cities, where the bike owners plan weekend or overnight trips with families riding their Harley Davidsons. They offer 16 models, including the popular Dyna-frame motorcycles.


    Source: After tasting initial success, Harley to drive into smaller Indian towns

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    I wish they start manufacturing here rather than just assembly. Maybe engine they can import. But others, I think they can manufacture here itself. That will bring down the costs even more and meet this target 10 times over!
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    An Interview.

    "" Most of our customers are upgrading from Royal Enfield "":- Anoop Prakash said in an interview to BS Motoring.


    After the famous Indo-US “Harley for Indian mango” deal in 2007, the American icon Harley-Davidson announced its entry through a wholly owned subsidiary — Harley-Davidson Motor Company India. Following an extensive study of the market, the iconic brand finally hit the Indian roads in July 2010. Anoop Prakash, who is spearheading the Indian operation of the company, tells Probal Basak (BS Motoring Staff) the 18-month journey has been “more than satisfying”. Clocking in sales of more than 1,000 units so far, the company is keen on assembling more (motorbike) models at its India factory at Bawal to drive volumes. Edited excerpts:

    When Harley-Davidson made its entry to India, you said it was not a part of the brand-building exercise. You want to be a serious player in the market. How do you evaluate the company’s journey in India so far?
    We are more than satisfied with our journey. We could not ask for more. When we thought about opening this market, we knew we are going to build and serve a whole new market segment. This is actually the first market where we entered with a wholly owned subsidiary. We have set up an assembly plant at Bawal in Haryana. All these are strong indicators of how serious and ambitious we are about the Indian market.
    Although we entered the market in 2009, we opened the first showroom in 2010. From July 2010 to end of December 2011 — in the 18-month period — there are over 1,000 bikes on Indian roads.

    Where do you see the numbers in the coming years?
    This year also, we will hopefully cross 1,000. We are looking at a 25-30 per cent yearly growth for the next five-seven years.
    We will be extending our footprint by the time. We have opened our eighth dealership in Kolkata.We will open in Kochi and Goa this year, as well. We also have our eyes on Nagpur. We are finding out where we can find our customer. I have a feeling some of North-Eastern cities can be our destinations, as people in this part of the country have a great passion for biking. We have a target of having a 17 to 20 dealership by the end of 2015.

    How important was it to have an assembling plant to drive volumes?
    As of now, we have five assembling models and 11 CBUs (completely-built units). Moving the price down through CKD (complete knock-down) was important for us. The price of an 800cc bike model that sold at nearly Rs 7 lakh when it was imported, came down to Rs 5.6 lakh after it was assembled locally. In fact, our CKD line-up is driving 70 per cent of our volumes.

    So, are you looking at assembling more models at the Bawal plant?
    We will start assembling another Dyna model this year, taking the total number of CKDs to six.
    We have ample capacity for assembling more units at our plant. We are trying to get customer feedback and find out which models are in demand. Right now, we are focused on assembling Sportster and Dyna models. Of the five CKDs, three are from the Dyna range and two from Sportster. There are three-four more bikes in Dyna and Sportster family itself, which are not on offer in India yet. So, there is obviously scope for assembling more units.

    Is the increased tariff or negative market sentiment affecting your growth?
    There was a lot of uncertainty whether or not the tariff would make the investment worth it, as the motorcycles are effectively going to cost twice as much as in the US. Harley-Davidson’s bikes in India are priced between Rs 5.6 lakh and Rs 35 lakh.
    Moving down the price point through CKD has helped us to some extent. And, despite an increased tax in the recent Budget and not that great a market sentiment, the demand of Harley remains unaffected. At the end of the day, we are able to reach out to our customer that Harley is not a product, it is a lifestyle.

    Do you have any intention to go below 800cc for India-specific products? Are not Indian players like Royal Enfield that offer 500cc bikes with a much affordable price range better positioned for the Indian super bike segment?
    We can not go below 800cc. We cannot have an India-specific product. All our products are for global markets. And, regarding Royal Enfield, I think it is a great compliment for us, rather than a competition. Most of our customers are upgrading from Royal Enfield. For me, competition is if somebody is doing something else on a Sunday morning because I want him to experience Harley Davidson during that time.

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    Quote Originally Posted by Samarth 619 View Post
    [b]An Interview.

    We can not go below 800cc. We cannot have an India-specific product. All our products are for global markets. And, regarding Royal Enfield, I think it is a great compliment for us, rather than a competition. Most of our customers are upgrading from Royal Enfield. For me, competition is if somebody is doing something else on a Sunday morning because I want him to experience Harley Davidson during that time.
    I like this part the most. Personally, it's really good to read that Harley do not have plans to move below 800cc, and they should not. Not everyone has to design and make India centric motorcycles to get numbers. Whether a person likes Harley or not, it is more than just a motorcycle manufacturer, it is also about a lifestyle, a statement. It's hard to imagine any other cruiser in the world that carries a bigger attitude than a Harley. And in my opinion, an RE is far from giving any sort of competition to the American giant. It isn't even worth giving a thought in this context!
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    Quote Originally Posted by Satellite.kid View Post
    I like this part the most. Personally, it's really good to read that Harley do not have plans to move below 800cc, and they should not. Not everyone has to design and make India centric motorcycles to get numbers. Whether a person likes Harley or not, it is more than just a motorcycle manufacturer, it is also about a lifestyle, a statement. It's hard to imagine any other cruiser in the world that carries a bigger attitude than a Harley. And in my opinion, an RE is far from giving any sort of competition to the American giant. It isn't even worth giving a thought in this context!
    a harley with am engine somewhere around 500 CC and price around 3 lakhs will not be a bad idea--either for customers or the company, both will benifit, customer will get a cheaper option and company gets the numbers it wants.

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    ^^^ Similar to how a Ducati cannot be spotted doing a smaller bike, same applies for the Harleys. Its in their bloodline to be big, mean and loud.
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    I agree with Brat and Sattelite.kid. A 500cc won't be that different from 883cc's when you start producing them, costwise. Not to mention a lot of R&D is required, and that increases costs too.

    In fact, I doubt there would be any benefit. Hardcore Hogs will hate the factory, and the bike itself won't set any new performance benchmarks.

    My opinion's the same: Get the Sportster 883 cheaper somehow or other. Or have an India specific model, somewhat a proper cruiser, like Avenger or senior HD's, with the 883 engine though, and it should rock!

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    Quote Originally Posted by Samarth 619 View Post

    My opinion's the same: Get the Sportster 883 cheaper somehow or other. Or have an India specific model, somewhat a proper cruiser, like Avenger or senior HD's, with the 883 engine though, and it should rock!
    the idea of a lesser CC machine was to reduce costs, if it can be achieved and made cheaper without reducing the CC, its even better, who doesn't like to ride a powerful and cheap bike...but is it possible, and what will be its aftereffects ...will it not annoy the existing and future customers of other expensive harleys....

    imagine me riding a cheaper harley with same engine producing similar power, torque and thump as your much costlier harley...what will i say to you.."so what if my bike has lesser chrome, it is a harley with same engine, and same noise...same character"

    and developing an india specific model will also incur R&D costs..

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