Harley Davidson going on the CKD route!

downsouth · 9th November 2010, 14:40

Just checked on the web Harley India is taking the CKD route according to a press release, surprising news indeed.

Harley-Davidson Announces CKD Assembly Operations in India -- MILWAUKEE, Nov. 2, 2010 /PRNewswire/ --

First it was M&M, then Garware Motors, Honda released its CBR250 plans for India now it is time for Harley to show more interest in the Indian Markets, using the CKD route will definitely bring the costs down. Now waiting for HD India to announce which bikes are going the CKD route. Even if the cost comes down by 20-25%. Then the cheapest HD would cost 5.5-6 lakhs, I for one am really happy.

Haroon · 9th November 2010, 19:33

The Sportster 883 being a high selling bike for HD in many markets, most probably only the Sportsters would be assembled here as it will bring down the prices in India thus resulting in more sales of the entry level Harley for Indians. Besides, I also see the opportunity for the Indian assembled sportster being exported to Middle-East, China, Far-East, Japan etc thru a direct arrangement with HD-USA.

Anyway, if the sportster sales pick-up in India, our desi chopper customizing shops for RE Bullet should now have a good platform in the Sportster for unlimited customization options.

EssYouWe · 9th November 2010, 20:39

This is good news!

Can we be certain that the savings will trickle down to the consumer, or will they look towards reaping profits?

shrini78 · 9th November 2010, 22:32

Agreed,
So what will happen to those owners who purchased sporty by paying a royal duty of 110%...
Is H-D gonna take care of them or their gonna be bunch of pissed off ppl for sure

RenuKumar · 9th November 2010, 22:42

Good news!!

People who wanted the cruisers now have a better option :-)

Haroon · 9th November 2010, 23:52

Quote:

Originally Posted by shrini78

Agreed,
So what will happen to those owners who purchased sporty by paying a royal duty of 110%...
Is H-D gonna take care of them or their gonna be bunch of pissed off ppl for sure

Probably they can console themselves as the people who got the 'original assembled in USA bikes'

. Besides, there will always be one group of people (many of whom would not even have sat on a HD!) who will say 'whatever said & done the first lot of bikes assembled in USA are way better'.

bradhey · 10th November 2010, 12:37

Duties are expected to come down by 80%, going by the news in major newspapers !! That would bring the cost substantially down...........!!! Waiting and counting my money till that happens.

aargee · 10th November 2010, 12:49

Quote:

Originally Posted by bradhey

Duties are expected to come down by 80%, going by the news in major newspapers !! That would bring the cost substantially down...........!!! Waiting and counting my money till that happens.

80%

Are you sure about this? Glad if you could point us the sources.

Somewhere I remember reading that any CBU attracts 110% & the breakup is 30+60+20 percent tax (don't ask me what the other 20 is about). The 30% is standard that includes even for the spares & the 60% is import.

So if the vehicle is CKD'd then we only get to spend the 30+20 percent, which means, the vehicle's cost is brought down by 60% & not 80%.

Guide me if I'm incorrect here.

hiren.mistry · 10th November 2010, 12:56

Quote:

Originally Posted by bradhey

Duties are expected to come down by 80%, going by the news in major newspapers !! That would bring the cost substantially down...........!!! Waiting and counting my money till that happens.

Where'd you read that? Source please.
If HD can do this, I hope the Japs take cue and follow them.

Ardy · 10th November 2010, 12:57

While searching on the net regarding this subject, I found the following article / news where in HD India is seeking some exemptions / clarifications.

Taxindiaonline.com - one stop destination for taxman & taxpayer

Based on my understanding 2 of the models that HD is planning for the CKD route would attract a customs duty of 10%. Going by this, there would be substantial benefits to the potential HD owners.

Hope my understanding of the ruling is right

EDIT: Adding one more URL regarding the same ruling: http://www.cbec.gov.in/aar/rulings/c...uling-2k10.pdf

I guess certain parts would have a duty of 10% and certain others not. So, it would be complex calculation for determining the final duty payable. But, at the end, the potential HD owners would have to shell out less from their pocket to own an HD.

Any kind of savings, is good news from HD.

Cheers,

nandishpal · 10th November 2010, 13:15

the first lot of owners who bought bikes at a higher price will never be disappointed as the first lot of bikes has a customised clutch cover with FIRST TO RIDE IN INDIA embossed on it,
which is more than enough to boast & value the bike

downsouth · 10th November 2010, 14:23

Quote:

Originally Posted by bradhey

Duties are expected to come down by 80%, going by the news in major newspapers !! That would bring the cost substantially down...........!!! Waiting and counting my money till that happens.

80% is way off the charts, that would bring the whole cost of the bike to a lot less than what people have already paid.

Quote:

Originally Posted by nandishpal

the first lot of owners who bought bikes at a higher price will never be disappointed as the first lot of bikes has a customised clutch cover with FIRST TO RIDE IN INDIA embossed on it,
which is more than enough to boast & value the bike

I can live without an customized clutch cover if I can save a lakh or two

, IMO having one such bike will not add value maybe people can brag. What will definitely matter to potential buyers is - will the bikes be of the same build quality as the ones assembled in the US of A.

Roy.S · 10th November 2010, 15:23

The auto section of the Hindu carried this news today.
I get the feeling that costs will not come down that much. HD would probably not want to lose the 'premium product' tag by slashing prices by 80%. 15% or so seems to be a more realistic figure.
I hope I'm wrong.

bradhey · 10th November 2010, 16:20

Cutting down on duties will not harm the image of Harley in any way, as those would be the realistic prices, the same at which they are selling these in US. Just because its a Harley does not mean they must charge a premium.

Ardy · 10th November 2010, 16:30

+1 to that.

Given the fact that Harley is trying its best to reduce the duty, I am sure they would like to sell more which is also supported by the fact that they would be starting their assembling facilities soon.

By passing on the benefits to the customer, the value or stature of Harley would not come down by any means. In fact, it would find more buyers.

Hope for the best.

Cheers,

9th November 2010, 14:40	#1
downsouth BHPian Join Date: Nov 2008 Location: 0.1933333, 32.58333 Posts: 357 Thanked: 23 Times	Harley Davidson going on the CKD route! Just checked on the web Harley India is taking the CKD route according to a press release, surprising news indeed. Harley-Davidson Announces CKD Assembly Operations in India -- MILWAUKEE, Nov. 2, 2010 /PRNewswire/ -- First it was M&M, then Garware Motors, Honda released its CBR250 plans for India now it is time for Harley to show more interest in the Indian Markets, using the CKD route will definitely bring the costs down. Now waiting for HD India to announce which bikes are going the CKD route. Even if the cost comes down by 20-25%. Then the cheapest HD would cost 5.5-6 lakhs, I for one am really happy.
	() Thanks

9th November 2010, 19:33	#2
Haroon BHPian Join Date: Aug 2005 Location: Jedda/Bangalore Posts: 574 Thanked: 1,164 Times	The Sportster 883 being a high selling bike for HD in many markets, most probably only the Sportsters would be assembled here as it will bring down the prices in India thus resulting in more sales of the entry level Harley for Indians. Besides, I also see the opportunity for the Indian assembled sportster being exported to Middle-East, China, Far-East, Japan etc thru a direct arrangement with HD-USA. Anyway, if the sportster sales pick-up in India, our desi chopper customizing shops for RE Bullet should now have a good platform in the Sportster for unlimited customization options. Last edited by Haroon : 9th November 2010 at 19:37.
	() Thanks

9th November 2010, 20:39	#3
EssYouWe Senior - BHPian Join Date: May 2009 Location: Lucknow Posts: 1,391 Thanked: 18 Times	This is good news! Can we be certain that the savings will trickle down to the consumer, or will they look towards reaping profits?
	() Thanks

9th November 2010, 22:32	#4
shrini78 BHPian Join Date: May 2009 Location: Houston, TX Posts: 258 Thanked: 56 Times	Agreed, So what will happen to those owners who purchased sporty by paying a royal duty of 110%... Is H-D gonna take care of them or their gonna be bunch of pissed off ppl for sure
	() Thanks

9th November 2010, 22:42	#5
RenuKumar BHPian Join Date: Mar 2006 Location: Bangalore Posts: 136 Thanked: 109 Times	Good news!! People who wanted the cruisers now have a better option :-)
	() Thanks

10th November 2010, 12:37	#7
bradhey BHPian Join Date: May 2010 Location: Agra Posts: 288 Thanked: 34 Times	Duties are expected to come down by 80%, going by the news in major newspapers !! That would bring the cost substantially down...........!!! Waiting and counting my money till that happens.
	() Thanks

10th November 2010, 12:57	#10
Ardy BHPian Join Date: Jan 2009 Location: Hyderabad Posts: 614 Thanked: 87 Times View My Garage	While searching on the net regarding this subject, I found the following article / news where in HD India is seeking some exemptions / clarifications. Taxindiaonline.com - one stop destination for taxman & taxpayer Based on my understanding 2 of the models that HD is planning for the CKD route would attract a customs duty of 10%. Going by this, there would be substantial benefits to the potential HD owners. Hope my understanding of the ruling is right EDIT: Adding one more URL regarding the same ruling: http://www.cbec.gov.in/aar/rulings/c...uling-2k10.pdf I guess certain parts would have a duty of 10% and certain others not. So, it would be complex calculation for determining the final duty payable. But, at the end, the potential HD owners would have to shell out less from their pocket to own an HD. Any kind of savings, is good news from HD. Cheers, Last edited by Ardy : 10th November 2010 at 13:05.
	() Thanks

10th November 2010, 13:15	#11
nandishpal BHPian Join Date: May 2006 Location: bangalore Posts: 492 Thanked: 80 Times	the first lot of owners who bought bikes at a higher price will never be disappointed as the first lot of bikes has a customised clutch cover with FIRST TO RIDE IN INDIA embossed on it, which is more than enough to boast & value the bike
	() Thanks

10th November 2010, 15:23	#13
Roy.S BHPian Join Date: Oct 2008 Location: Bangalore Posts: 707 Thanked: 946 Times	The auto section of the Hindu carried this news today. I get the feeling that costs will not come down that much. HD would probably not want to lose the 'premium product' tag by slashing prices by 80%. 15% or so seems to be a more realistic figure. I hope I'm wrong.
	() Thanks

10th November 2010, 16:20	#14
bradhey BHPian Join Date: May 2010 Location: Agra Posts: 288 Thanked: 34 Times	Cutting down on duties will not harm the image of Harley in any way, as those would be the realistic prices, the same at which they are selling these in US. Just because its a Harley does not mean they must charge a premium.
	() Thanks

10th November 2010, 16:30	#15
Ardy BHPian Join Date: Jan 2009 Location: Hyderabad Posts: 614 Thanked: 87 Times View My Garage	+1 to that. Given the fact that Harley is trying its best to reduce the duty, I am sure they would like to sell more which is also supported by the fact that they would be starting their assembling facilities soon. By passing on the benefits to the customer, the value or stature of Harley would not come down by any means. In fact, it would find more buyers. Hope for the best. Cheers,
	() Thanks