Nov 10, 2010

Harley-Davidson to build bikes in India

From a CNN report at the link below:

Harley-Davidson, the iconic American motorcycle brand with a cult-like following, has announced it has chosen to build its second assembly plant ever outside the United States in India.

India is the second fastest growing two-wheeler market in the world behind China. More than 10 million two-wheelers were sold in India in the 2009-2010 fiscal year.

Beyond the obvious market potential there is another major reason Harley-Davidson is building an assembly plant in India -- to bring down India's import duties which right now are so high Indian consumers pay double for fully assembled imported vehicles. Exporting just the parts to India could lower the import duty tariffs by around 80 percent.