Harley-Davidson plans to open a plant not on U.S. soil but in the burgeoning motorcycle market of India, the company said Tuesday.
An operation in the Indian state of Haryana that will assemble Harley motorcycles from component kits supplied by U.S. manufacturers will kick-start in the first half of 2011. It's the second Harley assembly plant to open outside the U.S.; the first opened in Brazil in 1999.
The new plant is "a natural next step for Harley-Davidson as we build our brand presence around the world," Matthew S. Levatich, president and chief operating officer, said in a release.
Initially, the Indian operation will mean little to Harley's operations in Springettsbury Township, spokesman Bob Klein said. Only Sportster motorcycles will be assembled there. The local factory, which produces mostly Softail and Touring models, will still ship its product to India fully assembled.
However, "as we gain more traction, it could lead to more opportunity" for the York County facility, Klein said. That means, if all goes well, the York County plant, in addition to building fully assembled bikes, could also build kits for assembly in India, Klein said.
In the short term, the move will reduce tariffs on motorcycles, Levatich said, which the company hopes will help draw stronger sales in India, where the company opened four dealerships in 2010.
"India's rapidly growing economy, rising middle class and significant investment in construction of new roads and highways are paving the way for leisure motorcycle riding," Levatich said.
No comments:
Post a Comment