The Harley-Davidson India’s managing director talks about India’s role in developing Street, the company’s export base and the key to its successNew Delhi: Harley-Davidson has been a success story in India. While its sales have been consistent in a slowing market, a little more than three years’ experience locally led it to develop a sleek and small motorcycle, the 750cc Street, which it will launch at the Delhi Auto Expo February. Mint first reported Harley’s plans in April 2011. In an interview, Harley-Davidson India’s managing director Anoop Prakash speaks about India’s role in developing Street, the company’s export base and the key to its success. Edited excerpts:
You have managed to sustain fairly reasonable sales of 80 to 100 bikes a month in the past three years, which clearly means the Harley story was not only about pent-up demand for the brand.
I think we have been really focused on two priorities. One is delivering great customer experience and there is unrelenting focus not only at the subsidiary level but at the company level and also at the dealer level. If you look at our dealer partners, they have done a great job in delivering world-class experience—what Harley-Davidson demands of them. I think that is a big reason for continuous growth.
The other priority has been that we have been very thoughtful on how we have entered the market. As we have moved into the market we have also made everything more accessible, and accessibility is a pillar of our strategy while coming into India. What I mean by that is where our locations... whether they are metros or tier III cities... we (are) accessible to customers who are fond of leisure biking.
Also, the CKD (completely knocked down) operations was a big step. We started in 2010 and then we immediately started CKD and now we have nine models on offer in the Indian market. Now with Street 750, which will be coming to India, we will be entering another accessible point.
Basically, the mangoes-for-bikes diplomacy has worked fine for you so far. (The US allowed import of Indian mangoes after a gap of 18 years after India granted Harley permission to start operations 2007)
That was the entry point and that was in 2007. But then we had to think about a thoughtful strategy and how would we enter the market. That’s why we came in 2009 after thinking through what is the strategy after talking to customers in India. We not only invested in building the brand but also built a motorcycle culture. We are proud and are happy to (take) credit for that.
There is another reputation that you seem to be building. People say Harley sells and then struggles at the service front. Your bikes are available in the pre-owned market within 3 years, which is not a usual thing for a product like Harley.
Yes, they have and a lot of customers have upgraded their bikes. That’s really what we are selling for. We have seen a great amount of customers moving from their initial Sportsters and now they are riding Dynas. So, they have upgraded once they have got the flavour of what the Harley-Davidson experience is.
So, you do not agree that there is a problem at the service front?
No, not at all. We talk to customers on a regular basis at rallies or at dealerships. There is great enthusiasm and (it) gives us opportunity to improve. From three years back to now, we have improved dramatically in terms of our supply chain availability, and that’s a big part of being the first one in the market. You get to learn faster than everyone else.
Let’s talk about the Street series of bikes.
Street 750 will be coming to India first and not the Street 500. We have got a lot of feedback and Street 750 is what a lot of people want and they are looking forward to it. They wanted to have the same power but also the manoeuvrability that comes with the Street platform.
What percentage of work has happened in India for the Street platform?
Oh, it’s exciting. It’s a global motorcycle for a new urban generation. We have done at least 3,000 interviews in 10 different countries, including almost 500 in Delhi, Bangalore and Mumbai. They want an urban, manoeuvrable, nimble bike and dark kind of styling and that has driven the design of the Street.
Hasn’t this been a cultural shift at Harley from making big, bulky bikes to sleek ones like Street?
It’s an indication of how our markets are changing. We have become more global. Last year we reached a milestone where the number of our international dealers are more than the US dealers. That’s a huge change from the earlier position. Street is a reflection of change in target markets. But it has not changed our mindset. Our mindset has always been customer-led.
Will you be doing complete manufacturing of these bikes in India?
It’s beyond CKD. We are in a good place from the capacity point of view unless the market changes dramatically in 2-3 years.
What kind of volumes do you expect from Street?
We will be entering a new price segment with Street 750, which will be under Rs.5 lakh on-road price. We will announce the final pricing at the Delhi Auto Expo. We think it will be a game-changer for us because it will target a much broader segment.
At this price, you will attract some Royal Enfield customers, too.
Well, we have always considered Royal Enfield buyers as future Harley riders. So, that’s natural. With Street 750, we will make Harley more affordable to them.
Street 500 will be entry-level bike on the pricing front.
Yes, as and when we bring the bike here.
Any plans to make a bike in the range of 250-300cc?
No, not at all. There have been some rumours going around but all of those are completely made up.
Any plans for exports?
We will be exporting from Bawal (in Haryana) to international markets. We will be exporting to Portugal, Spain and Italy.
What will be your annual production target for the Street series?
Between Indian and the US plant, we should be producing in the range of 7,000 and 10,000 units every year.
You have managed to sustain fairly reasonable sales of 80 to 100 bikes a month in the past three years, which clearly means the Harley story was not only about pent-up demand for the brand.
I think we have been really focused on two priorities. One is delivering great customer experience and there is unrelenting focus not only at the subsidiary level but at the company level and also at the dealer level. If you look at our dealer partners, they have done a great job in delivering world-class experience—what Harley-Davidson demands of them. I think that is a big reason for continuous growth.
The other priority has been that we have been very thoughtful on how we have entered the market. As we have moved into the market we have also made everything more accessible, and accessibility is a pillar of our strategy while coming into India. What I mean by that is where our locations... whether they are metros or tier III cities... we (are) accessible to customers who are fond of leisure biking.
Also, the CKD (completely knocked down) operations was a big step. We started in 2010 and then we immediately started CKD and now we have nine models on offer in the Indian market. Now with Street 750, which will be coming to India, we will be entering another accessible point.
Basically, the mangoes-for-bikes diplomacy has worked fine for you so far. (The US allowed import of Indian mangoes after a gap of 18 years after India granted Harley permission to start operations 2007)
That was the entry point and that was in 2007. But then we had to think about a thoughtful strategy and how would we enter the market. That’s why we came in 2009 after thinking through what is the strategy after talking to customers in India. We not only invested in building the brand but also built a motorcycle culture. We are proud and are happy to (take) credit for that.
There is another reputation that you seem to be building. People say Harley sells and then struggles at the service front. Your bikes are available in the pre-owned market within 3 years, which is not a usual thing for a product like Harley.
Yes, they have and a lot of customers have upgraded their bikes. That’s really what we are selling for. We have seen a great amount of customers moving from their initial Sportsters and now they are riding Dynas. So, they have upgraded once they have got the flavour of what the Harley-Davidson experience is.
So, you do not agree that there is a problem at the service front?
No, not at all. We talk to customers on a regular basis at rallies or at dealerships. There is great enthusiasm and (it) gives us opportunity to improve. From three years back to now, we have improved dramatically in terms of our supply chain availability, and that’s a big part of being the first one in the market. You get to learn faster than everyone else.
Let’s talk about the Street series of bikes.
Street 750 will be coming to India first and not the Street 500. We have got a lot of feedback and Street 750 is what a lot of people want and they are looking forward to it. They wanted to have the same power but also the manoeuvrability that comes with the Street platform.
What percentage of work has happened in India for the Street platform?
Oh, it’s exciting. It’s a global motorcycle for a new urban generation. We have done at least 3,000 interviews in 10 different countries, including almost 500 in Delhi, Bangalore and Mumbai. They want an urban, manoeuvrable, nimble bike and dark kind of styling and that has driven the design of the Street.
Hasn’t this been a cultural shift at Harley from making big, bulky bikes to sleek ones like Street?
It’s an indication of how our markets are changing. We have become more global. Last year we reached a milestone where the number of our international dealers are more than the US dealers. That’s a huge change from the earlier position. Street is a reflection of change in target markets. But it has not changed our mindset. Our mindset has always been customer-led.
Will you be doing complete manufacturing of these bikes in India?
It’s beyond CKD. We are in a good place from the capacity point of view unless the market changes dramatically in 2-3 years.
What kind of volumes do you expect from Street?
We will be entering a new price segment with Street 750, which will be under Rs.5 lakh on-road price. We will announce the final pricing at the Delhi Auto Expo. We think it will be a game-changer for us because it will target a much broader segment.
At this price, you will attract some Royal Enfield customers, too.
Well, we have always considered Royal Enfield buyers as future Harley riders. So, that’s natural. With Street 750, we will make Harley more affordable to them.
Street 500 will be entry-level bike on the pricing front.
Yes, as and when we bring the bike here.
Any plans to make a bike in the range of 250-300cc?
No, not at all. There have been some rumours going around but all of those are completely made up.
Any plans for exports?
We will be exporting from Bawal (in Haryana) to international markets. We will be exporting to Portugal, Spain and Italy.
What will be your annual production target for the Street series?
Between Indian and the US plant, we should be producing in the range of 7,000 and 10,000 units every year.
