Harley Davidson to zip on Indian roads by 2010

The US-based Harley Davidson was granted permission to start operations in 2007, but the company had been lobbying with the government to cut down on the 110% import duties on bikes, which effectively doubled the cost of these motorcycles for Indian consumers. While the duties remain unchanged, Harley has gone ahead to tap the Indian market on its own.

Harley Davidson Motor Company president and COO Matt Levatich told ET: "The high tax burden is a disadvantage to our products, but we are looking at the vast opportunity in the world's second-largest two wheeler market. Gradually, we expect the niche bike segment to grow with infrastructure improvement and a buoyant economy."

India's seven-million strong motorcycle market does not have a big share of super bikes or high-powered bikes that Harley Davidson makes, but the US firm is banking on the growing popularity of such products. Bike makers who are present in the segment include Suzuki with its Hayabusa and Intruder models, besides other companies such as Yamaha, Ducati and Honda. These firms together sell over 400 units a year in the domestic market.

Harley has not set any targets but is looking to sell in excess of 100 bikes next year. It will bring 15-20 bikes to India from its product line-up of over 200 models and start with the flagship cruiser Fatboy and Night Rod Special models.