Harley-Davidson CEO pleased with India model pre-orders

Harley-Davidson CEO pleased with India model pre-orders

Harley-Davidson’s Pre-Orders for New Model in India Exceed Expectations

Image Source: Reuters

In an exciting development for both Harley-Davidson and motorcycle enthusiasts in India, the renowned U.S. big-bike maker announced that the pre-orders for its new model in partnership with a local manufacturer were “exceeding expectations.” Launched earlier this month, the model has generated significant interest, showcasing the immense potential and enthusiasm for premium motorcycles in the Indian market.

Tapping into India’s Motorcycle Market

India is the largest motorbike market in terms of sales, making it an ideal destination for global motorcycle manufacturers to introduce their latest offerings. Recognizing the opportunity, Harley-Davidson, along with British rival Triumph, has unveiled their most affordable models in India, seeking to capitalize on the country’s increasing consumer spending in the premium segment across various categories, including mobile phones and cars.

Harley-Davidson CEO Jochen Zeitz expressed his delight during an earnings call with analysts, stating, “We’ve been extremely pleased with the reception that the X440 has received since launch, with pre-orders exceeding initial expectations.” However, he didn’t provide specific details about the number of pre-orders. Nevertheless, this positive response highlights the demand for Harley-Davidson motorcycles in the Indian market.

Competition and Reentry Strategy

While Harley-Davidson and Triumph have made bold moves in India, they face competition from Royal Enfield, a brand deeply ingrained in the country’s motorcycle culture. Royal Enfield has a loyal fan base, an extensive network of showrooms, and a robust after-sales service network. To successfully penetrate the Indian market, Harley-Davidson must find its unique selling points and differentiate itself from established competitors.

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For Harley-Davidson, the X440 marks a significant return to India, this time in collaboration with Hero Motor Co, the world’s largest motorcycle maker. This strategic partnership enables the production of motorcycles at competitive prices below 233,000 rupees ($2,841). Previously, Harley-Davidson imported its ultra-premium motorcycles for a decade before temporarily exiting the Indian market in 2020 due to various challenges.

Now, with its renewed focus on India, Harley-Davidson’s CEO sees the country as a long-term opportunity, emphasizing its massive overall market potential. Despite tighter credit conditions impacting consumers’ ability to make big-ticket leisure purchases in the United States, the company remains confident in its decision to invest in the Indian market.

Second-Quarter Profit Decline and Future Outlook

In other news, Harley-Davidson reported an 18% decline in second-quarter profit, primarily attributed to production disruptions. However, with the positive response to their new model in India and a strategic partnership with Hero Motor Co, the company is optimistic about overcoming these challenges.

The Indian market offers immense potential for Harley-Davidson and other motorbike manufacturers. With its growing middle class, increasing disposable income, and a strong desire for premium products, India represents a future growth engine for the motorcycle industry.

As Harley-Davidson continues its journey in India, it aims to capture the hearts and minds of Indian motorcycle enthusiasts with its iconic brand and performance-driven motorcycles. The success of this new model and the partnership with Hero Motor Co will certainly shape the company’s future direction in the region.

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