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News FeedIndian mangoes don’t seem sweet enough to attract American cult bikemaker Harley-Davidson to India.
It’s been a year since the government of India relaxed emission and testing norms to allow the import of these high-end bikes in exchange for export of mangoes to the US.
But Harley-Davidson still hasn’t debuted on Indian roads.
So what’s keeping Harley-Davidson away? The buzz in the market is that the US company is studying the option of roping in an established Indian bikemaker for its complete knock-down (CKD) operations.
Through such an arrangement, it will be able to use the Indian company’s manufacturing plant for assembling bikes.
Unconfirmed reports name Royal Enfield as a prospective partner.
The total duty incidence on completely built units (CBU) imports is 114% but for CKD operations, the levy comes down significantly.
Though it refused to confirm the reports on the hunt for an Indian partner, Harley, on Wednesday, admitted that the prohibitive duty structure for large bikes was the reason it hadn’t entered India yet.
A Harley-Davidson spokes-person told DNA Money from the company’s Milwaukee headquarters, “India imposes a duty of 60% on heavyweight motorcycles which, coupled with the tax rate of 30%, creates a significant barrier for our entry into the Indian market. Harley-Davidson continues to seek a solution to the barriers. We are in the process of laying the groundwork for a possible entry into the Indian market should those barriers be lifted,” the spokesperson said.
In May last year, the government permitted the import of motorcycles with engine capacity of 800 cc and above if they complied with Euro III emission norms.
This meant such bikes did not have to be homologated in India or conform to the country’s emission standards. Instead, importers of such bikes have to produce a certificate from a recognised testing agency.
The move prompted many motorcycle makers to bring their speed monsters to India. Large bikes from Honda, Yamaha and Suzuki are either here already or on their way.
Italian bikemaker Ducati took the plunge last month, opting for the exclusive distributorship route and bowing to the 114% duty regime.
Source: www.sify.com