Harley Davidson delays India entry

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Kolkata, June 17: Harley Davidson, one of the most enduring icons of motorcycle buffs worldwide, is likely to delay its India foray unless the company has a set of primary dealers of “its choice” in the country.

The 101-year old US-based company which sells 3,00,000 motorcycles a year and is famous for its trailblazing cruisers and an equally interesting turnaround story in the mid-1980s, is keen on increasing its presence in the European markets first for the time-being.

Harley Davidson has set up shop in more than 18 countries and a presence in 114 countries across the globe. Outside the US, Japan is the strongest for the company in the international markets.

Harley Davidson former vice-president of business development, Clyde Fessler, said the company has consciously decided to keep supply a little lower than demand for the international markets in the near future. This is because the company anticipates that its impressive growth (15-20% growth in both topline and bottomline) in the last 10-15 years will be difficult to sustain in the face of stiff competition.

Speaking about Harley Davidson’s $5 billion India debut, Mr Fessler, whose business strategies are followed even today in the company, said that choice of dealers for India will be crucial as dealers have played a major role in the company’s turnaround and are a part of Harley Davidson tradition.

“A strong dealer network is the backbone of Harley Davidson. We have always given dealers tools of growth. Even now, there are fourth generation dealers with us back in the US who have been extremely loyal to us. Unless we are sure about the dealers and can ensure a steady supply of auto parts to back our motorcycles sales here, we will not enter the Indian market,” Mr Fessler said.

According to Mr Fessler, Harley Davidson dealerships are different from other auto dealerships in the sense that the company makes an effort to “bond” with the customers.