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Union Budget Compels Harley Davidson to Follow CKD Route Instead of CBU

Union Budget had played spoilsport for most of the automobile fraternity and bike makers are not spared for exception.

Harley Davidson was riding on a high note when the government announced this de-motivating budget and spoiled all exciting fractions.

Stopping at the worst is not in the veins of this American bike maker so to cover up rough patches Harley Davidson announced to introduce its three model in the CKD (completely knocked down) route instead of CBU (completely built-up). Our Government had introduced a lump of additional taxes on the CBU units so therefore to gain cost-effective results the bike maker will manufacture three models here in India only. New three will add the total figure to nine for Bawal (Haryana) facility.

Harley Davidson

Commenting on this new move Anoop Prakash, Managing Director for Harley-Davidson India says, “While the duties appear to have increased on CBU imports, the impact on our pricing will be minimal thanks to our steady focus on developing our completely knocked down (CKD) operations in India since early 2011.  Our CKD operation allows us to contribute to local investment while also reducing the tariff burden for customers across India.  With our announcement today, nine of the 12 models in our India line up are now being assembled in our India CKD facility, which will give our customers reason to celebrate.”

Naming the affected ones it is surfaced that Harley-Davidson Fat Boy Special, Harley-Davidson Fat Boy and Harley-Davidson Heritage Softail Classic will go under ‘Made in India’ tagging to upkeep competitive pricing standard.

Harley-Davidson Heritage Softail Classic

While of course the new changes had brought in new prices, must be saving a lot due to the localized productivity. Passing on those benefits is really a cool trick.

The following table below displays new price list:

ModelNew Price (via CKD)*Old Price (via CBU)
Fat BoyRs 14.9 Lakh Rs. 19.45 Lakh
Fat Boy SpecialRs 15.6 LakhRs. 19.70 Lakh
Heritage Softail ClassicRs.16.25 LakhRs. 20.45 Lakh

*All prices are ex showroom Delhi.
With just a recent event of National HOG rally in Goa on 110th anniversary, Harley had clearly indicated its seriousness towards India; after all we are topping the list of various prominent bike makers!

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