Harley-Davidson ceased manufacturing operations in India in 2020 but established an agreement with Hero MotoCorp to continue selling imported products in the country. The X440, the first jointly developed product by the two companies, aims to challenge Royal Enfield in the premium bike category, which often boasts higher operating profit margins than software exports. Hero MotoCorp will manufacture the X440 for the Indian market.
Harley-Davidson’s renewed focus on the Indian market aligns with the increased engagement between Washington and New Delhi in response to China’s growing commercial influence globally. Zeitz sees the large Indian market as an opportunity for future growth. The company plans to work with partners in countries where it lacks market expertise to establish the appropriate distribution networks and invest in under-represented sectors. This approach signifies a departure from the company’s previous strategy of self-sufficiency.
Zeitz noted that this strategy is particularly relevant in markets where customer preferences differ and import duties pose challenges. India imposes import duties of 50-75% on motorcycles based on engine size. Zeitz expressed the desire to bring larger bikes into the Indian market without incurring substantial tariffs, as it would enhance accessibility for a greater number of riders. He questioned the justification for paying such tariffs on bikes entering India compared to those entering the United States. Additionally, Zeitz acknowledged the growing mid-weight motorcycle segment in India.