When west meets east
Harley Davidson the american cult bike maker may finally relent from its policy of building Harley’s only in US. In 2007, under a quid pro quo between US and indian Government, India Government relaxed the import policy to facilitate import of super bikes of capcity over 800cc while the US Government allowed the entry of Indian mangoes. But the high import duty on CBU (Completely Build Unit) continues to haunt Harley Davidson. Harley has several times expressed his displeasure on high import duty. It also heavily lobbied for the duty cut. But the Indian Government never budged to its demand. In the meanwhile, Yamaha and lunched their superbikes ranging from Rs10 lakh to Rs50 lakh to lure high profile indian customers. Realising the other’s move, it seems Harley has finally decided to assemble bikes in India. (CBU attracts 110% duty while the CKD attracts only 60%) Harleys will be imported as CKD units and assembled hers. The latest buzz Harley Davidson is looking for a local partner. Who may be the best mate for Harley other than homegrown cult bike maker Royal Enfield. Yes, the big ‘H’ may tie up with big ‘R’ of motor industry to sell bikes in India. “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,” a Harley Davidson spokesperson said.