US iconic bike maker Harley Davidson on Monday said it would launch operations in India to assemble motorcycles for the Indian market from component kits supplied by its US plants, which would make these products cheaper in the local market.
It expects the complete knockdown (CKD) assembly facility to be operational in the first half of 2011. The announcement comes as US President Barack Obama prepares to travel to India on a state visit focused on strengthening ties between the two countries, including trade and economic opportunities.
India will be the second country where Harley- Davidson has CKD assembly operations outside the US, after Brazil where the company began assembly operations in 1999. The assembly plant will come up at 70,000 square feet of land at Bawal in Haryana.
India had relaxed emission norms for big bikes above 800cc in order to let Harley Davidson sell its products in India after the US agreed to grant market access to Indian mangoes in 2007.
Harley- Davidson Motor Company president and chief operating officer (CFO) Matthew S. Levatich said, " This investment will allow the company to improve its market responsiveness and production flexibility while reducing the tariff burden, which we expect will drive growth over time by making our bikes more accessible to India's consumers.
We are building a strong foundation for our business in India, first by establishing a world- class dealer network, and now by commencing CKD assembly operations," Anoop Prakash, managing director (MD), Harley- Davidson India, said.
"It is important for us to continue to invest in strategies that make our products and experiences accessible to an increasingly broader set of customers across India," he added.
Harley- Davidson India has been importing assembled motorcycles from its US final assembly plants. Once the CKD assembly facility in Haryana is operational, Harley India will import CKD kits for select models, consisting of components produced in its US plants in Wisconsin, Pennsylvania and Missouri.
Courtesy: Mail Today
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