Harley-Davidson, Inc. (NYSE:HOG) is moving forward with the launch of operations in India to assemble motorcycles for the Indian market from component kits supplied by its U.S. plants,..."CKD assembly operations in India are a natural next step for Harley-Davidson as we build our brand presence around the world," said Harley-Davidson Motor Company President and Chief Operating Officer Matthew S. Levatich. "This investment will allow us to improve our market responsiveness and production flexibility while reducing the tariff burden, which we expect will drive growth over time by making our bikes more accessible to India’s consumers. Given the strong response we have received in the initial months of retail operations, we believe this is the right investment for this important market," Levatich said.
To date, Harley-Davidson India has been importing completely assembled motorcycles from the Company’s U.S. final assembly plants. Once the Indian CKD assembly facility in the Indian State of Haryana is operational, Harley-Davidson India will import CKD kits for select current models, consisting of components produced by Harley-Davidson’s U.S. plants in Wisconsin, Pennsylvania and Missouri and by the company’s suppliers. Indian employees at the Haryana facility will then assemble the components into finished motorcycles. Other models will continue to be imported as completely built motorcycles for now.
India will be the second country in which Harley-Davidson has CKD assembly operations outside the U.S., after Brazil where the Company began assembly operations in 1999.
