'Daunting trade barriers' keep Harley away from India

[OhioChick]

Source: Economic Times-India

PTI< TUESDAY, MAY 01, 2007 02:00:27 PM>


NEW DELHI: Days after the Centre relaxed emission norms for foreign motorcycle companies, American cult bike maker Harley-Davidson on Tuesday accused India of maintaining "daunting trade barriers" in the form of high duties to keep it away.

In an e-mailed interview, Harley Davidson Motor Co (HDMC) Vice-President, Government Affairs, Tim Hoelter told media that besides the emission norms, there was a far more "daunting trade barrier" facing the company in India that it hope could be addressed.

"Presently, India maintains a 60 per cent rate of duty on heavyweight motorcycles. This extraordinary tariff rate when coupled with taxes of 30 per cent, would double the price of a Harley-Davidson motorcycle in India, were we to enter the market," he said.

Questioning the rationale behind India's high duty on heavyweight motorcycles, he said such a norm was to prevent companies like HDMC from entering the market.





Read more: http://economictimes.indiatimes.com/Daunting_trade_barriers_keep_Harley_away_from_India/articleshow/1984336.cms

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Apparently, the Harley/Mango swap isn't working out very well.

[Fierce]

1. Boo hoo hoo.

I'd never buy one, but Harley is the only union motorcycle company in the country.

[Deja Q]

2. Maybe HD should start selling file servers and SSN databases.

:shrug:

[pokercat999]

3. Maybe we should revoke the corporate charter of

any so called American corporations outsourcing their workforce overseas.

[melm00se]

9. Huh?

this story is not about HD outsourcing to India but, apparently, being blocked from selling their (American assembled/built) products in India.

[pokercat999]

19. We can't sell motorcycles there, in retaliation we

stop "American" corporations from sending jobs there.

[liberal N proud]

4. Free trade only works one way

We buy cheap shit made overseas, they buy nothing from us

[rfranklin]

5. Harley went to Congress for protection against the Japanese back in...

the 1980's. That was okay, right?

[liberal N proud]

7. There were still a lot of Japanese bikes sold after that

The market was flooded with them prior to that happening but they still were a large share of the market even after.
Was it right? if the trade truly isn't fair then yes, Congress should step in and protect the American companies from unfair trade practices. Not the attitude in the US today

[slampoet]

11. See post #10 below. India is just protecting their domestic motorcycle companies the same way as HD

India also makes the fantastic Stella Brand Scooter.

[ryanmuegge]

18. You're goddamn right it was ok.

Believe me, the Japanese protect their own domestic business intrests. We should do the same.

[Canuckistanian]

6. Time to drag their asses into WTO court...

Unfair! Unfair! They'll scream.

And India will give in.

[tech3149]

8. I just took a look at our Harmonized Tariff Schedule

What a complete freakin joke! Almost 3,000 pages. Most of the tariffs are a few percentage points with tons of exceptions and conditions in every category of product. Even if we dumped NAFTA, GAAT, and every other "free trade" agreement, it would take a monumental effort to rewrite this to make anything resembling fair trade possible.

[slampoet]

10. Why would ANY person in India buy a Harley? When......

India has a factory for the oldest motorcycle company in the world located right in India.

http://www.royalenfield.com/app/IN/default.asp



Forgive me, but I'd rather have that classy British/India made bike if I were in their country to visit. Just like in America I wouldn't buy a Harley if I lived next to the factory that made Indian Brand Motorcycles.


Also this may be because people in India don't have the time to go out every spare weekend to look for parts to keep their Harleys in repair.


Are they next going to complain that Germans don't buy enough Harleys?

On edit:

Check out all the diversity of motorcycle, scooter, and 3 wheeled vehicles on this page of new and used motorcycles. There must be 12 different companies putting out something in the 2 or 3 wheel market. Harley is Obviously outclassed when it comes to providing a cycle that people Need.

http://www.alibaba.com/countrysearch/IN-suppliers/Motorcycle.html

[guitar man]

12. Enfields are great, but

India has a factory for the oldest motorcycle company in the world located right in India.

Royal Enfield makes a fantastic motorcycle, brilliant, simple old school design. But if you want a bike over 500cc, you gotta go with someone else because 500 is the biggest bike they make.

Also this may be because people in India don't have the time to go out every spare weekend to look for parts to keep their Harleys in repair.

Totally bogus statement, based on disinformation. Back before the changeover to the Evo engine design, I'd agree with you, the old AMF Shovelheads were maintenence pigs. Not so anymore, since Willie G and company bought it back from AMF, the bikes have just kept getting better. I ride a '99 model almost 100 miles to work and I haven't missed a day yet. Haven't even been late because it's rock-solid reliable.

Harley is Obviously outclassed when it comes to providing a cycle that people Need.

But they are the king of the world at building the bikes people want. For quite a while, until they got manufacturing capacity to meet demand, you had to get on a waiting list just to buy a new one. It's the "in demand" bike for a lot of people, nothing else will do. They want them in China, they want them in Japan and it wouldn't surprise me to find out they want them in India, but each of these countries has imposed ridiculous restrictions to importing them.

[mahatmakanejeeves]

13. You pretty much took the words out of my mouth.

I, myself, don't get the word on Harley-Davidsons, but that's just me. People are standing in line to buy them, so maybe I'm in the minority. If consumers in India want to buy them, then they should be free to do so.

If there's any thing this country does not have enough of, it's goods that are exported to meet a worldwide demand.

More power to HD on this one.

Disclaimer: I am not a shareholder or an owner.

[slampoet]

14. Harleys are not Wanted by People in China and Japan for transport.......

....They are collected by Rich people. Market share proves that. We are talking about transportation for the masses and not just weekend use. Take a look at the the 3 wheeled rickshaws in the link and you get an idea of the utilitarian market.


And "Back before the changeover," doesn't absolve Harley from past mistakes.

I wouldn't buy a Ford pinto if they said all the design flaws were fixed. Past performance is all current customers have to go on.

I'm sure you love your Harley riding in the USA, but you probably wouldn't be riding it to work everyday if you lived in Bombay.

[guitar man]

15. it doesn't matter

who wants them or why, it's just unfair that the one way trade barriers are put in place to stop their import.

I was watching a conference of state governors and business leaders on CSpan about a year ago and they were addressing these issues. It was noted in the meeting that Harley was developing a cult following in China and how there was a growing black market of parts for pepople there to assemble their own "Harley clone" bikes.

China had made the proposal to HD that a plant be built in China to build Harleys for the growing demand if HD wanted to sell bikes there. That's not going to happen, besides, the Chinese rider don't want a Harley built in China, they want the real deal.

Also, in Japan, to be liscensed to ride a "heavyweight" motorcycle (over 700cc) a stringent test is required where the rider must ride the bike across a narrow "balance beam". Hell, I don't know if even I could do that.

I just don't understand why other countries can't open up their markets to our products like we've opened up to theirs and let those markets decide.

[mahatmakanejeeves]

17. "They are collected by Rich people."

So? Here's what matters:

Harley-Davidson has three factories in the United States, or at least three at which tours are given. If you're a worker at one of those plants, you probably couldn't care less whether the people buying the bikes are rich, poor, black, white, polka-dotted or zebra-striped. All you care about is that there are people ready, willing, and able to buy the bikes you are building. The jobs are here, the money is going into the pockets of American workers, and the tax base makes it possible for schools and parks to get built in the surrounding communities.

I just don't have a problem with that.

[Acadia Blue]

16. Bushonomics....hurt Americans and help the third world and corps

that manufacture in other countries. I wish his trust fund would crash and he would have to work for a living like the rest of America.