Harley-Davidson is expanding its assembly operations in India, increasing the number of models imported as complete knockdown kits to nine. Harley-Davidson will now assemble the Fat Boy, Fat Boy Special and Heritage Softail Classic in India, joining six models already being assembled in India.
The move follows India’s new budget which increases import duties on motorcycles with engines larger than 800cc to 75% from the previous rate of 60%. The higher duties would have resulted in higher prices for the three models. By moving assembly to India, Harley-Davidson was instead able to reduce the prices for the three models by over 20%.
Harley-Davidson now assembles nine of the 12 models it offers in India at its facility in Haryana, India. Anoop Prakash, managing director of Harley-Davidson India, tells Indian Express the company had long planned to increase its CKD operations in India.
“Since we entered India in 2009, we have been consistent with our plans have more local assembly of our products and make them accessible to more enthusiasts and customers across the country. The CKD operations of the three models is another step towards it.”
[Source: Indian Express]