[JayPrashanth]

Growing spending power from younger populaces in emerging markets around the world and the ageing of USA's baby booming generation has meant that Harley Davidson needs to significantly reinvent itself to stay relevant and profitable. The first cogs of Harley Davidson's reinvention have already begun turning, what with the American motorcycle giant announcing and showcasing motorcycles based on an all-new platform at EICMA 2013.



Note: Harley Davidson Street 500 pictured in this report is illustrative in nature.

The Street 500 and 750 range of entry-level urban cruisers from Harley Davidson are aimed at younger motorcycle buyers across both emerging and developed markets. These motorcycles have broken from Harley tradition, by introducing lower displacement engines, liquid cooling and also, a made-in-India heritage. While it has taken 14 long years for Harley Davidson to come up with a brand new motorcycle platform, the changing dynamics of the motorcycle market might not take kindly to such torpor in the future.

EconomicTimes reports that Harley Davidson could be considering more lower displacement motorcycles for emerging markets across the world. The report goes on to even suggest that the new crop of small capacity Harleys could displace as little as 250-300 cc, figures that would certainly make Harley purists cringe with disdain. These small capacity motorcycles are said to be Harley Davidson's way of fending off competition and boosting volumes.

India, which already plays host to a Harley Davidson mother plant at Bawal, Haryana, only the second such facility in the world, will be the bulwark around which the American motorcycle maker's new strategy will revolve. Harley Davidson is said to be working with component suppliers in India for an extensive amount of localization. A heavy localization will be key for Harley Davidson to boost its bottomline while also offering the motorcycle buyer a competitive price point to pick from.

Other details about the low cost motorcycle are unknown currently. Since Harley Davidson has clearly emphasized that it would not build country-specific motorcycles, the new, small-capacity range is likely to be a global one. Many global brands have already taken a lead by entering/announcing entry into the small capacity segments. KTM, BMW Motorrad and Triumph are three such examples that immediately spring to mind. Taking cue, Harley Davidson could also go lower than 500 cc.

[ku69rd]

Wow, HD is now stooping too much. They will lose out on their status if they continue like this. With the launch of the 500 & 750 many die-hard Yankees are grumbling and am sure if this is true they will make their way towards Victory & Indian brands.

Member HD made a grand recovery for positioning themselves as the true American Spirit. And riding a 250-300 CC is very UnAmericanish.

[GTO]

Originally Posted by ku69rd

Wow, HD is now stooping too much.

Sometimes, you just got to look at business sense. Not too long ago, Harley suffered loss-making quarters.....for the first time in many years.

Harley could get away with charging a premium for its 300cc motorcycles. These are crucial in developing markets and will provide far great volume than the big bikes.

End of the day, if the 250-300 cc bikes sell, they'll lead to a healthier company. Remember how all of us cried sore about a Porsche SUV (i.e. Cayenne) and sedan (Panamera). Well...

Nearly 50 years after the launch of the 911, its newer, more roomy siblings, the Cayenne SUV and four-door Panamera, account for almost three quarters of Porsche’s sales, and some customers fear the company is straying too far from its racing roots.

Source

It's a win win situation for all, including the purists. Because of the Cayenne & Panamera, they get a better 911

[ku69rd]

Originally Posted by GTO

It's a win win situation for all, including the purists. Because of the Cayenne & Panamera, they get a better 911

GTO,
Do agree with your liners on business sense, but HD's have always been associated with their potato sound and the chrome accompanied with those huge Cylinders. My overseas colleagues still snigger when you make a reference to the sportster range forget the 750 & 500's.

Would beg to differ, Porsche evolved into making bigger and comfortable cars and ensured that it carried the same DNA from their 911s. How would you do it with these motorcycles especially when you are shrinking them big time.

My 2 Cents.

[gearbox]

Its good news, atleast for India, even with a 250/300cc engine, we could atleast expect top notch quality that the existing ones in the same CC range do not offer, ofcourse at a premium though. However, I am sure there would be many who would willingly pay a premium for the quality.
Good competition too to all those who have been getting away making shoddy, Not so great quality products in the market.

Sometimes to carry on with a heritage, one tends to bend the rules to sustain and then carry forward the heritage.

[JayPrashanth]

The following read is interesting in many parts, funny in some.

http://www.hdforums.com/wp-content/u...dson-69552.pdf

Harley Davidson was/is more "marketing" than substance. I'm pretty sure that the Harley example, for better or worse, is going to come up in many case studies across B-Schools.

Cheers,

Jay

[Shubz]

We can all put the speculation to rest - Harley Davidson is NOT going to venture into this segment!

Or at least it says so -- HERE

Cheers!

[GTO]

Harley Davidson writes in with a clarification:

“Recently, The Economic Times printed a highly speculative article about 250-300cc motorcycles from Harley-Davidson. While we do not comment on future product, in this case we can confirm that our only plans are to launch the new Harley-Davidson Street 750 at the 2014 Auto Expo, with an on-road price of under 5 lakhs.” – Company Spokesperson