Harley Davidson Plans Production Plant in Thailand

Harley-Davidson Street Rod 750 India

Harley will be able to save 60% import duty in Thailand with the new manufacturing plant

American motorcycle giant Harley Davidson is all set to set up a new manufacturing plant in Thailand that will cater as the hub for the Southeast Asian market. Currently, Harley serves the Southeast Asian countries with motorcycles manufactured in its US and India plant. But, as the demands have been rising rapidly in these countries, the new Thailand plant will take some pressure off the US and India factories.

Also, with the new production plant Harley Davidson will be able to save around 60% import tax in Thailand, which it currently pays for its products. Also, with this new factory Harley will be able to enjoy the benefits on export tax for shipping in other ASEAN countries, allowed by a trade agreement between the ASEAN members.

2016-Harley-Davidon-Street-750 (8)

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The new production plant will be set up in Thailand’s Rayong province, southeast of Bangkok. But, the US motorcycle major is yet to confirm the amount of investment. The company has claimed that new manufacturing facility won’t affect the production in US, but it didn’t reveal anything about the production in India.

In India, Harley opened a plant back in 2011. Apart from that, it has an assembling plant in Brazil as well, that caters the Latin American markets. Currently the company has a total of 14 motorcycles on offer in the country with price ranging between Rs. 4.98 lakh and Rs. 51.35 lakh (ex-showroom, New Delhi). The Street 750 is the cheapest offering from the brand in the country, with a 47 bhp generating 750 cc engine onboard.

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Demands of premium motorcycles have been increasing in Indian market for quite some time and since entering the market, Harley Davidson has seen growing popularity here. However, competition has increased as well. Currently, in the middleweight category, Royal Enfield is one of the leading manufacturers targeting the American brand to give tough competition.

Harley Davidson Street 750 Gallery

Source: CNBC