With high customs duty impeding sales of its imported big bikes in India, Harley-Davidson is banking on the partnership with Hero MotoCorp to offer locally-produced premium models in the country, according to company’s Chairman, President and CEO Jochen Zeitz. India imposes 50 per cent customs duty on imported fully built up bikes, which makes the American cult bike-maker feel that partnering with Hero has turned out to be a good decision after deciding to exit its manufacturing operations in In .India three years back.
In an interaction with PTI, Zeitz noted that the tie-up with Hero MotoCorp is allowing the Milwaukee-based bike maker to go for “volume opportunities” by introducing a competitive product in the Indian market.
“And (there is) a lot of upside with much greater manufacturing capability that Hero brings in and the willingness to invest into the business, to really build us up as a brand. So, I would say it is the right decision,” he said.
Zeitz noted that the company would like to get its big bikes into the market without having to pay huge customs duty. “That (high customs duty) is the downside. But X440 is made in India. It does not have tariffs, so that’s a positive for those who want to get an experience of the Harley brand,” he said.
Last week, Harley and Hero introduced their first co-developed product in India — Harley-Davidson X 440 — with price starting at Rs 2.29 lakh. The bike is being produced by Hero MotoCorp at its Neemrana-based plant.
Asked about Harley Davidson’s electric vehicle strategy he said one day, there certainly is going to be an electric Harley, but not in the near future.
“Electrification is likely to grow in some markets faster than others. and we want to be the leader in electrification as a holding company,” he said.
Asked if the company is looking to introduce its electric bike range, Livewire in India, Zeitz said, “I don’t see that in the near future.”
