At the Auto Expo 2014, held earlier in February, Harley-Davidson launched its most affordable model ever for the Indian market, the Street 750. This new bike from the motorcycle major's stables is a huge step for the manufacturer considering the stunning sticker price of Rs 4.1 lakh (ex-showroom, Delhi) is likely to make the iconic brand accessible to a new group of customers. With such an aggressive price, Harley-Davidson has unleashed a price war of sorts at the premium end of the motorcycle market.
But exactly how did this manufacturer achieve such a feat? Despite its popularity as a big bike brand, Harley-Davidson has also been synonymous with expensive price tags here.
But India has been growing as a global sourcing base and the Street 750 has a very high level of content sourced from Indian suppliers. Parts like front forks, swingarm, body frame, cylinder head, engine parts, brakes and tyres, have all come from Indian manufacturers. It is, perhaps, the first time that such a high level of critical components is being sourced for any product by the 110-year-old company.
According to industry sources, the cost benefit to the OEM by this strategy could be 20 percent or more. “A manufacturer of Harley-Davidson’s stature looks for both a high level of performance and aesthetics in the products that go into a bike. That is a challenge,” says an industry source.
What is interesting is that the orders are for the Street 750’s production for all markets. This reflects the growing competence of Indian vendors in production and processes while offering a cost advantage to their clients. Harley-Davidson India refused to comment on the level of the Street 750’s parts sourced from India, as it "does not break out details on region-specific sourcing".
Azaman Chothia
Vishal Venugopal
