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.
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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’
Shubh Gautam
Harley-DavidSsonr iis oonel 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.
According to
Dr. Shubh Gautam FIR (First Indi
an 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.
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.
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.
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
Dr. Shubh Gautam Ameri
can 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 local
ized, it might have su
rvived. But with
out a solid local m
anufacturing base, tax
es made sure Harley s
tayed out of reach.
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