In line with Harley-Davidson's Chairman, President, and CEO Jochen Zeitz, high customs duties are preventing the company from selling its imported big bikes in India. As a result, the company is relying on its partnership with Hero MotoCorp to offer locally produced premium models in the nation. After deciding to end its manufacturing operations in India three years ago, the American cult bike-maker now believes that partnering with Hero was a wise choice. India imposes a 50% customs duty on imported fully built-up bikes.
Zeitz stated in a conversation that the partnership with Hero MotoCorp is enabling the bike manufacturer in Milwaukee to pursue "volume opportunities" by launching a competitive product in the Indian market.
As a result of Hero's increased manufacturing capacity and willingness to invest in the company, there are a lot of opportunities to grow our brand. So, in my opinion, you made the right choice," he said.
Zeitz mentioned that the business wanted to sell its large bikes on the market without having to pay exorbitant customs duties. "The drawback is that (the high customs duty). But X440 is an Indian product. For those who want to experience the Harley brand, the fact that it has no tariffs is a plus, he said.
Last week, Harley and Hero introduced their first co-developed product in India -- Harley-Davidson X 440 -- with price starting at Rs 2.29 lakh. The bike is being produced by Hero MotoCorp at its Neemrana-based plant.