American automotive giant Harley-Davidson may make in India to sell globally, reported the Economic Times quoting its CEO Jochen Zeitz. Last week, the company launched its most affordable bike to date in partnership with Hero MotoCorp in India.
Zeitz also told Economic Times that the first priority of the company is to strengthen local sales with the HD X440, the bike Harley co-created with Hero.
"We were manufacturing our 750cc also for the international market (here), so I am not ruling that out," Zeitz told Economic Times, referring to India's export potential for the company. "But right now, the focus is really to make sure that the product is successful in India. From there we can build and come up with other ideas."
The production of HD X440 will be the second innings for Harley Davidson in India as the company had stopped manufacturing in 2020. Hero MotoCorp will manufacture HD X440 for sales in India. The X440 - the first product jointly developed by the two companies - is priced around ₹2.3 lakh and the company had reached an agreement with Hero MotoCorp to continue sales of its imported products in the country.
Earlier, Harley Davisdon was focused on doing everything on its own. However, the approach has now changed as the import duties concerns remain. Zeitz also told the publication that it is imperative to work with a partner as the company does not have the know-how for market penetration and as the customers think differently.
Zeitz told Economic Times that the strategy is "especially (important in) these markets where the customer is also thinking slightly differently, and you have the issue of import duties."
Depending on the size of the engine, India levies import duties of 50-75% on imported motorcycles.