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With India in focus, Harley Davidson to come out with 250-

500 cc bike
BY KETAN THAKKAR, ET BUREAU | UPDATED: JUL 31, 2018, 08.44 AM IST Post a Comment

MUMBAI: Iconic US superbike maker Harley-Davidson is planning to launch a mid-size

motorcycle in the 250-500 cc range for emerging markets as it eyes major gains in India
and plots to challenge Royal Enfield’s leadership position.

Harley-Davidson will be addressing this fast-growing segment through a strategic alliance

with a manufacturer in Asia after a tieup between TVS and BMW and one between Bajaj
Auto and Triumph Motorcycles. The identity of the manufacturer could not be ascertained
and the global statement does not name anybody.

While the vehicle displacement will be in the heart of Royal Enfield’s target market, the US
bike maker may price its vehicle at a higher end. It may even offer an upgrade option to
The details on the launch of this smaller
thousands of Royal Enfield owners. displacement motorcycle or who would be its
alliance partner in Asia or it is from India were not
Royal Enfield is also getting ready with its own twin cylinder 650 cc bike for a launch later mentioned in an official press release.

in the year.
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The end of Five-Year Plans: All you need to know
Announcing new mid-term plan till 2027 named ‘More Roads to Harley-Davidson’, the US
giant said it is developing small-displacement (250-500 cc) bike for Asia’s emerging markets through a strategic tieup with a
manufacturer in Asia.

“This new product and broader distribution is intended to fuel Harley-Davidson’s customer access and growth in India, one of the largest,
fastest growing markets in the world, and other Asia markets,” the company said in a statement.

Harley-Davidson believes that consumer spending on discretionary and premium products is reaching critical mass in China, India and
Southeast Asia.

The company spokesperson told ET that India’s 250-500cc motorcycle segment is expected to grow at more than 25% annually through
2021, which presented a big potential growth opportunity.

The 250-500 cc motorcycle market in India grew to 8.33 lakh units at the end of FY18 accounting for 6.6% of the overall motorcycle
market. Royal Enfield took the lion's share in the segment with a market share of over 95%.

The Harley-Davidson spokesperson declined to share details on the launch of this smaller displacement motorcycle or who would be its
alliance partner in Asia or whether it is from India.

“We anticipate leveraging our global manufacturing footprint to bring these future products to market globally. Specific details on which
products will be manufactured at which locations is still to be determined,” he told ET.

Given the fact that the likes of BMW and Triumph also sees India as a key export base for future, it makes sense for Harley-Davidson to
deepen its manufacturing footprint here from the largely CKD base and use it for exports, say experts.

The highlights of the plan includes new touring and cruiser motorcycles, new middle-weight modular platform 500-1250 cc segment,
more accessible and small displacement bikes including an all-electric motorcycle Livewire, which will hit the market in 2019.

“Alongside our existing loyal riders, we will lead the next revolution of two-wheeled freedom to inspire future riders, who have yet to even
think about the thrill of riding,” said Matt Levatich, president and chief executive officer of Harley-Davidson Inc. “We expect this plan will
result in an engaged, expanded Harley-Davidson community with a more diverse rider base, along with industry-leading margins and
cash flow.”
Harley-Davidson plans to offer its most comprehensive lineup of motorcycles, competing in many of the largest and fastest growing
segments with a full portfolio across a spectrum of price points, power sources, displacements, riding styles and global markets, the
company said in a statement.

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