Iconic Harley cuts prices, increases local assembly

Announcement on the heels of the government increasing customs duty on imported bikes

In a move that could enthuse motorcycle aficionados, iconic-bike maker Harley-Davidson has announced that it will locally assemble three more models — Fat Boy, Fat Boy Special and Heritage Softail Classic. With this, the company will be able to slash prices by about Rs 4 lakh on these models.

Including these three models, the company will now assemble nine out of the 11 models it has on offer in its line-up in India.

The latest announcement comes close on the heels of the government increasing customs duty on imported motorcycles (with engine capacity upwards of 800 cc) to 75 per cent from the earlier 60 per cent in the Budget.

Anoop Prakash, managing director, Harley Davidson India, said, “While the duties appear to have increased on completely built-up units (CBU) imports, the impact on our pricing will be minimal thanks to our steady focus on developing our completely knocked down (CKD) operations in India since early 2011.”

While Harley Davidson Fat Boy would now be cheaper by a whopping Rs 4.55 lakh at Rs 14.9 lakh (ex-showroom, Delhi), the Fat Boy Special and Heritage Softail Classic would be available for Rs 16.25 lakh (earlier Rs 20.45 lakh) and Rs 15.6 lakh (earlier 19.70 lakh) respectively. “Our CKD operation allows us to contribute to local investment while also reducing the tariff burden for customers across India”, added Prakash.

Model	Previous Price (ex-showroom, Delhi)	Current Price (ex-showroom, Delhi)	Price reduction
Fat Boy	Rs 19.45 lakh	Rs 14.9 lakh	Rs 4.55 lakh
Heritage Softail Classic	Rs 19.70 lakh	Rs 15.6 lakh	Rs 4.1 lakh
Fat Boy Special	Rs 20.45 lakh	Rs 16.25 lakh	Rs 4.2 lakh

Harley Davidson had announced its decision to start assembling bikes in India in November 2010. The facility at Bawal (Haryana) is the second assembly plant for the firm outside its home base. The other such facility is in Brazil.

Harley Davidson sells 11 models in India priced between Rs 5.71 lakh and Rs 22.81 lakh. The bike maker has nine authorised dealerships. Since it commence sales in July 2010, Harley Davidson has sold over 2,000 motorcycles in India.

The iconic bike maker was allowed to sell motorcycles in the Indian market in 2007 when emissions norms for big bikes exceeding 800 cc were relaxed, in lieu mangoes from the country were permitted to be sold in the US.