Why are Harley-Davidson sales struggling in India?
The USA-based Harley-Davidson is one of the best motorcycle companies in the world and famous for the street, cruiser, and touring bikes. Though this premium motorcycle company sold more than 25000 motorcycles in India during its first decade (between 2009-2019) but still this motorcycle company deserves more sales in the Indian market.
India is the largest two-wheeler market in the world. Harley-Davidson entered the Indian market in July 2010 by opening its first dealership at Gurgaon, Haryana, India.
Harley-Davidson started manufacturing Street 750 and 500 motorcycles models at Bawal Plant, Haryana in India and exporting Street 750 to other Asian countries also from this plant. Currently, Harley-Davidson India offers 13 different bikes in India from more than 33 showrooms.
In this blog, we shall discuss why this bike is not selling more in the Indian market.
India is the largest two-wheeler market in the world. Harley-Davidson entered the Indian market in July 2010 by opening its first dealership at Gurgaon, Haryana, India.
Harley-Davidson started manufacturing Street 750 and 500 motorcycles models at Bawal Plant, Haryana in India and exporting Street 750 to other Asian countries also from this plant. Currently, Harley-Davidson India offers 13 different bikes in India from more than 33 showrooms.
In this blog, we shall discuss why this bike is not selling more in the Indian market.
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| Image: Harley-Davidson Street 750 |
1. Costly
India is a country of 1.30 Billion people and because of this massive population average per capita income of people is low. The maximum population lives in India are belongs to a medium-income family.
The most affordable and best-selling model of Harley-Davidson in India is Street 750 which costs ex-showroom INR 5.34 Lakh. In India at this price one can own a hatchback car. So this bike turned into a premium bike in the Indian market.
The most affordable and best-selling model of Harley-Davidson in India is Street 750 which costs ex-showroom INR 5.34 Lakh. In India at this price one can own a hatchback car. So this bike turned into a premium bike in the Indian market.
2. 500cc and 700cc do not suit Indian traffic
Because of the massive population urban traffic is so busy in India. So most people choose low-power bikes for better mileage.
A large group of youth in India are fond of touring and like to own a bike between 200cc to 350cc to fulfill their dream. Within every 10 bikes on the Indian road 3 to 4 bikes are between 200cc to 350cc.
A large group of youth in India are fond of touring and like to own a bike between 200cc to 350cc to fulfill their dream. Within every 10 bikes on the Indian road 3 to 4 bikes are between 200cc to 350cc.
3. Availability of low-cost 650cc bikes of the famous brand
Indian motorcycle manufacturer Royal Enfield India is known for the solid build quality and powerful engine. Royal Enfield Interceptor 650 bike (winner of the Indian Motorcycle of the year 2019) is available at lower than half the price of the Harley-Davidson base model Street 750 in India with attractive color.
So maximum people choose to buy Royal Enfield's Inceptor 650, Continental GT 650, Classic 500, and Thunderbird 500 bikes over Harley-Davidson.
4. Easy service is not available
Since all the showrooms and service centers of Harley-Davidson are situated in major popular cities of India while a large proportion of rich farmers and businessmen living in districts, villages, or town-areas. They hesitate to buy this bike because of the service centers located in cities.
5. Low mileage & high maintenance cost
The fuel price in India is high. Though most people are comfortable with the mileage of the Harley-Davidson. If we compare Royal Enfield's bike with this bike then Royal Enfield seems better than Harley-Davidson in the way of mileage and maintenance cost.
Due to the high cost of spare parts and maintenance of the Harley-Davidson bikes, people own an Indian bike of Royal Enfield or Jawa Motorcycles.
6. Heating problem (in the market/traffic)
India is the country of a mixed season. During summer temperature of India ranges between 30-48 °C. Though street 750 equipped with a liquid-cooled engine.
But if you are driving with a naked leg and your bike is standing in traffic with the engine on, the heating problem arose and can heat your leg by the high temperature around its engine.
7. Low-steel parts compare to Royal Enfield
Though this run machine looks heavy and cool if you compare Royal Enfield with Harley-Davidson then you will found that there are very fewer fiber parts in Royal Enfield bikes compare to Harley-Davidson.
Royal Enfield has been used more steel in their bikes which attract Indian buyers in the sense of long-term durability and rural touring terrain.
8. Small Pillion seat
The cheapest and largest selling bike of Harley in India is the Street 750. Its pillion seat does not attract more to the Indian medium-income buyers.
They need a seat in which a pillion rider or luggage can be comfortably seated without any problem. Since most people buy a high power bike for touring or for covering long distances.
9. No service and showroom availability in the small city
Harley-Davidson only covers the Indian urban market so its showrooms and service centers are only in urban areas of India. Some buyers like Harley-Davidson and they have eager to own this bike. Because of showroom and service center unavailability in their locality, they choose other bikes over it.
10. Indian mindset- Can afford a car instead of that
This is my last point but not least. This is the common mindset of all Indian medium wage earner buyers that they can own a four-seater car at this price of Harley-Davidson Street 750 bike. Well-known car companies like Tata Motors, Maruti Suzuki, Hyundai Motor, etc are providing a hatchback car at the price of around INR 5 lakh.
They count the benefits like they can travel with their family in the car, their family will not get wet in the rain and they can safely travel in the car as the traffic is dense in India and the possibility of an accident on the bike remains more compare to the car.
Though Harley-Davidson is the best motorcycle company and famous in the USA they are doing a mistake by ignoring mid-level buyers because these mid-level buyers contribute more to the Indian motorcycle market which makes it one of the best motorcycle markets in the world.
In India, there is so much competition below 300cc bikes but above 300cc only a few companies are available and selling a high volume. Mahindra Group is performing very well with its 300cc Jawa motorcycle segments and providing good competition to Royal Enfield motorcycles.
I think Harley-Davidson can also achieve better sales volumes in this 300cc range by considering the need for mid-level Indian buyers. As per the news, Harley-Davidson India is also working to launch a 350cc affordable bike in the Indian market. This move will surely boost the sales volume of this company.
Currently, this bike is among the top-selling premium bikes of India and its total sales volume of India is more than two thousand bikes per year which are quite good among all premium motorcycle companies available in the Indian market and it will be increased more after the launch of an affordable 350cc bike by Harley-Davidson in India.
In India, there is so much competition below 300cc bikes but above 300cc only a few companies are available and selling a high volume. Mahindra Group is performing very well with its 300cc Jawa motorcycle segments and providing good competition to Royal Enfield motorcycles.
I think Harley-Davidson can also achieve better sales volumes in this 300cc range by considering the need for mid-level Indian buyers. As per the news, Harley-Davidson India is also working to launch a 350cc affordable bike in the Indian market. This move will surely boost the sales volume of this company.
Currently, this bike is among the top-selling premium bikes of India and its total sales volume of India is more than two thousand bikes per year which are quite good among all premium motorcycle companies available in the Indian market and it will be increased more after the launch of an affordable 350cc bike by Harley-Davidson in India.