Harley's Entry into China and India Sets Groundwork for Future Success
posted on: February 27, 2008
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HOG
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Q4 international sales for Harley Davidson (HOG) were up 17% and the
company now has its sights set on blowing past that number. India's
commerce ministry has now agreed to recognize European engine emission
standards for motorcycle engines exceeding 800 cubic centimeters, a
standard Harley's bikes already comply with. The door is now open to
sell their bikes in one of the world's most populous countries.
One
hang up, a 60% tariff a various other taxes that cause the price of the
bike to double. Harley is seeking a reduction in the tariff to 10%, a
level comparable to other imported items in the country. They report
having "regular contact" with government regulators on the subject.
One
hang up, a 60% tariff a various other taxes that cause the price of the
bike to double. Harley is seeking a reduction in the tariff to 10%, a
level comparable to other imported items in the country. They report
having "regular contact" with government regulators on the subject.
Harley spokesperson Bob Klein said "this is step one". Already entering the Chinese market and with sales in Latin America and Europe very strong, HOG has proven its brand will sell very well outside the US.
While
neither the China nor India ventures will contribute meaningfully in the
near term bearing a blockbuster move, the groundwork is being set for
explosive results down the road. Results, it should be noted, that will
continue to be strong for decades given the populations of both
countries.
Disclosure: Long HOG.
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This article has 1 comment:
Tiedeman