Harley-Davidson to fight in India with smaller engine bikes

The announcement by Harley comes after three consecutive years of declining sales in India. It also comes at a time when Harley’s rivals such as BMW, KTM, and Triumph forged partnerships with TVS Motor Company and Bajaj Auto for locally developed products.

From an all-time peak of 4,708 units sales in 2015-16 Harley’s sales last financial year stood at 3,413 units. Though Royal Enfield does not sell its bikes at the same price point as Harley the buyer profile of both the brands is largely the same. Royal Enfield has more than doubled its sales in the last four years to 8 lakh units.

Harley’s smallest bike in its India line-up has an engine of 750cc and costs Rs 5.25 lakh (ex-showroom). In comparison bikes made by its rivals such as BMW and KTM have engines starting with 300cc-400cc. Royal Enfield has developed bikes that will help it enter the 650cc category later this year.

To further expand its market Harley will also introduce a new modular 500cc-1250cc middleweight platform motorcycles that span three distinct product spaces and four displacements. Most likely these new class of bikes will make it to India too.

This will start with the company’s first Adventure Touring motorcycle, the Pan America 1250, a 1250cc Custom model and a 975cc Streetfighter model, all of which are planned to launch beginning in 2020. Additional models to broaden coverage in these product spaces will follow through 2022.

“The accelerated strategy will require significant investment to change the trajectory of the business globally, and the company plans to fund it entirely through comprehensive cost reduction and reallocation of previously planned investment and resources including operating investment through 2022 of $450 to $550 million and capital investment through 2022 of $225 to $275 million.  In total, the company plans More Roads to Harley-Davidson to generate more than $1 billion of incremental annual revenue in 2022 as compared to 2017”, said the company.