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Auto Monitor

3 DECEMBER 2012

INTERVIEW

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“We garner a 40 percent year-on-year growth” Harley Davidson has brought in six variants of models as Completely Knocked Down (CKD) kits, while claiming a 60 percent market share in the segment. It plans to bring in more CKD models into India and deepen its penetration in the country by expanding in three more cities – Goa, Pune and Indore. Speaking to Auto Monitor, Managing Director, Harley Davidson India, Anoop Prakash said that its decision to assemble entry level products in the country helped its Indian customers gain a `1.5 lakh price cut and increased accessibility to a broader range of enthusiasts. Nabeel A Khan Your range of CKDs is quite expansive, probably the highest number in this segment. How do you see your market share progressing in India? I don’t think there is any official data available on the market size available readily. But I presume that we probably have 50 to 60 percent of the market. This is because we have a lead that includes a full line-up, which includes in terms of service support and world class customer experience. Once you join the Harley Davidson family, you start a new lifestyle and a product you enjoy in the years to come.

I expect a double digit growth this fiscal also. There is no localisation in our CKD model, as we bring the complete kit from the US. Are you satisfied with the kind of response you have got post CKD operations in India? When we started our CKD assembly operations in January, 2011, the prices of our entry level products went down to `5.5 lakh from about `seven lakh. So as we did before, we passed on most of the

savings to the customers because we want to bring accessibility to a broader range of enthusiasts. This

has paid off and we now see a different growth trajectory since we started CBU. Recently we have

launched Dyna models in CKD and are now adding a third product again in the Dyna range.

What kind of investments have you made in India? We do not like to disclose the investments made. What is the India contribution to your global sales? We prefer to be reticent about any percentage sales and break-ups of the same. But, yes, India is one of the leading markets in Asia for us. We will disclose this year’s numbers by the end of this year. In the last two and a half years, we have sold over 2,000 bikes. Simultaneously, we plan to gather feedback from our customers and rate it with how the other models are performing. But we are committed to bringing in new models from the global portfolio. Could you describe the expectancy in terms of growth you foresee? We garner a 40 percent year-on-year growth. Again, this depends on factors that we are merely not enthusiastic about, but also generate. We are bullish and think this will continue. I expect a double digit growth this fiscal also. There is no localisation in our CKD model, as we bring the complete kit from the US. Can you share you after-sales and parts arrangement in India? You know, bulk of our parts comes from our regional distribution centre in Singapore. We usually have them in two to three weeks. Most of these parts and accessories we keep with us and with time we are understand which the products that have demand are. For us, it’s a very quick turnaround of vehicle in case of repair, because we want the customers to be on road as soon as possible. How are you planning to increase your penetration especially to smaller and none metro cities. We have recently opened our outlets in Kolkata, Kochi and next we will be open in Goa by December. We find that the response has been tremendous. I personally went on ride with the customers in Kochi. We don’t open a dealership without a workshop and trained technicians. We spend lot of time to ensure that after-sales if good. We are very proud about our after-sales experience and customers come to us and educate us as to what they want. We will be opening three move dealerships next year which would be Indore, Pune and Jaipur. I would be expecting Delhi, Mumbai and Bangalore to contribute around 65 percent of sales while the tier-II cities will fill in the rest of the share.

Auto Monitor - 3 December 2012  

'AUTO MONITOR’, India’s leading weekly automotive news magazine, focusses on offering a broad platform to the automotive industry. It strive...

Auto Monitor - 3 December 2012  

'AUTO MONITOR’, India’s leading weekly automotive news magazine, focusses on offering a broad platform to the automotive industry. It strive...

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