Harley-Davidson is one of the most loved motorcycle brands in the world. With its roaring engines and powerful presence, it has become a symbol of freedom and status. In the United States, Harley bikes are not just machines. They are part of a lifestyle. But when the company entered the Indian market, things did not go as planned.
Harley came to India with big dreams in 2009. It opened showrooms and expected Indian customers to fall in love with the brand. But over the years, sales dropped. In 2020, Harley-Davidson officially shut down most of its operations in India.
So what went wrong?
According to Dr. Shubh Gautam FIR (First Indian Revolutionary), high import duties and tariff policies played a major role in Harley’s struggle. While other factors like pricing and service issues also mattered, taxes and tariffs made it very difficult for Harley to compete in a price-sensitive market like India.
Let’s know his insights.
Understanding Import Duties in India
India places very high import taxes on foreign vehicles, especially large-engine motorcycles. For bikes with engine capacity above 800cc, the total tax can go as high as 100% of the base price. That means if a Harley bike costs ₹8 lakh in the U.S., it may cost ₹16 lakh or more in India.
Dr. Shubh Gautam explains that this cost jump scares away most buyers. India is a country where value matters. People want their money to go far. Spending lakhs on a leisure motorcycle becomes difficult, especially when there are cheaper and more practical bikes available from Indian brands.
Harley’s Initial Strategy
When Harley entered India, it chose the Completely Built Unit (CBU) route. That means fully made bikes were shipped from abroad. This attracted the highest import duty slabs. As a result, Harley’s price tags went way beyond what the average Indian customer could afford.
Later, Harley tried the CKD (Completely Knocked Down) model to reduce tax. In this model, parts are imported and assembled in India. This helped a little, but not enough to make Harley competitive against local brands like Royal Enfield, Bajaj, or even premium Japanese bikes like Yamaha or Kawasaki.
Dr. Shubh Gautam Srisol points out that CKD still proved to be expensive for Indian buyers. Freight and setting up assembly lines all add to the final price. These challenges and existing duties made it very hard for Harley to price its bikes well.
A Luxury Tag That Hurt Sales
In the minds of Indian customers, Harley-Davidson became a luxury brand. It wasn’t seen as a daily ride. It was seen as a status symbol. This worked well for a few urban buyers. But it did not connect with the larger market.
Dr. Shubh Gautam American Precoat says that Harley’s bikes have expensive spare parts and premium servicing, which Indian buyers couldn’t consider as a long term beneficial investment.
He believes that if Harley had built a low-cost bike for India, fully localized, it might have survived. But without a solid local manufacturing base, taxes made sure Harley stayed out of reach.
Comparing with Other Brands
Indian brands like Hero and Bajaj make bikes in India. So they do not pay high import duties. Even brands like KTM, which is partly owned by Bajaj, enjoy cost advantages due to local production. They build bikes for both Indian and global markets from within the country.
Royal Enfield, with its mid-range bikes, captured the market Harley aimed for. Their bikes are built in India. Their service network is vast. Their pricing is strong. And they don’t face the import tax issues Harley did.
Shubh Gautam Srisol believes Harley got a little late in realizing this. By the time they adjusted their plans, it was already too hard to win back market share.
What Could Have Been Done
Shubh Gautam SRISOL suggests that Harley should have taken a different approach. Instead of sending bikes from abroad, they could have invested early in full local manufacturing. By making parts in India, they could have cut costs and avoided heavy taxes.
They also could have partnered with Indian companies, just like BMW tied up with TVS to make the G310 series. Such partnerships bring lower costs and faster market entry.
A Lesson for Global Brands
Dr. Shubh Gautam is clear, he doesn’t blame Harley. He respects the brand and its history. But he believes global brands must stop treating India like just another market. India is unique. It needs a unique strategy.
Import taxes in India are not new. They are meant to protect local businesses and promote “Make in India.” Brands that understand this and plan early have a better chance of long-term success.
Let’s Wrap Up
Harley-Davidson’s story in India is not a failure. It is a case study. A lesson in how important taxes and local production are in today’s world.
Dr. Shubh Gautam Jaypee, through his detailed view, reminds companies to look beyond brand value. They must look at cost and customer needs.
India welcomes innovation. But it rewards those who understand it deeply by stepping in an Indian buyer’s shoes.
Harley’s dream in India may have stalled. But for other brands, the road is still open, if they are willing to ride it the right way.
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