Harley-Davidson to set up assembly plant in Haryana

November 2nd, 2010 - 5:01 pm ICT by IANS  

New Delhi, Nov 2 (IANS) Luxury motorcycle manufacturer Harley-Davidson Tuesday said it would set up an assembly facility in Haryana by the first half of 2011.

“We are building a strong foundation for our business in India, first by establishing a world-class dealer network, and now by commencing CKD (complete knock-down) assembly operations,” said Anoop Prakash, managing director, Harley-Davidson India.

According to the company, the assembly plant will use CKD components to assemble the motorcycles in the country. CKD kits would be provided by the company’s US plant.

The company expects that the assembling at its new plant in Haryana will allow it to shore up production capacity and reduce the added import tariff on its products.

“This investment will improve our market responsiveness and production flexibility while reducing the tariff burden, which we expect will drive growth over time,” said Matthew S. Levatich, president and chief operating officer.

The company said it will start importing CKD kits for only select models. Other models will continue to be imported as completely built motorcycles for now.

India will be the second country in which Harley-Davidson has a CKD assembly operations outside the U.S. The company began its operations in August last year and opened its first dealership in July this year.

Currently, it offers 12 models, available through authorized dealerships in New Delhi, Mumbai, Chandigarh and Hyderabad.

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