Harley-Davidson will be opening its second facility outside the United States after it launches an assembly plant in India for motorcycles sold in that country, according to a report in an Indian newspaper.
Harley-Davidson began selling cycles in India in July, and because of tariffs decided to open an assembly plant there, Harley-Davidson India Managing Director Anoop Prakash told the Hindustan Times. Tariffs on parts are only 10 percent, compared to 60 percent on completely built units. Harley has been in the country since 2007 and began selling motorcycles after the country relaxed emission norms for cycles above 800cc.
The plant, which will sit on 70,000 square feet of land in Bawal in Haryana, is expected to be operational by the first half of 2011. It will produce a few of the 12 models Harley sells in India.
Harley-Davidson is expecting to sell 200-250 units in India by the end of the year. It currently has four dealerships, with a fifth opening in December. Three more will be added next year, and others are being considered.