Harley-Davidson CEO says India model pre-orders 'exceeding expectations'

X440

Harley-Davidson said on Thursday that pre-orders were "exceeding expectations" for a new model the U.S. big-bike maker launched this month in India in partnership with a local manufacturer.

Harley and British rival Triumph have unveiled their cheapest models globally in India, the largest motorbike market by sales, to tap into higher spending in premium segments across categories as varied as mobile phones and cars.

"We've been extremely pleased with the reception that the X440 has received since launch, with pre-orders exceeding initial expectations from launch," Harley-Davidson CEO Jochen Zeitz said on an earnings call with analysts.

He did not provide further details.

The motorcycle makers, however, will have to reckon with India's 100-plus-year-old brand Royal Enfield, which has an entrenched fan base with a large number of showrooms and a strong after-sales service network.

The X440 marks a return to India for Harley-Davidson.

This time the company has teamed up with Hero Motor Co, the world's largest motorcycle maker, to make the bikes with prices below 233,000 rupees ($2,841).

Harley-Davidson spent a decade importing its ultra-premium motorcycles before exiting the market and shuttering most of its dealer network in 2020.

"Now I look at India as a long-term opportunity ... it's a huge market overall," Zeitz said.

The fresh bet on India comes when tighter credit conditions are denting U.S. consumers' ability to make big-ticket leisure purchases.

The company, earlier in the day, reported an 18% decline in second-quarter profit, hit by production disruptions.