Ready to HOG

Strange as it may sound, most Indian cruiser aficionados’ affinity for mangoes has increased to unimaginable heights. Back in ‘07, the Indian government gave the go ahead for Harley-Davidson to enter the country in exchange for Indian mangoes. However, it took two years of R&D for H-D to make an official announcement about their debut here. With India’s 3,500,000 kilometers of great (and some not so great) highways and a brand built for open roads, this was just a matter of time. We caught up with the Managing Director of Harley-Davidson’s Indian subsidiary, Anoop Prakash and asked him to throw some light (prakash!) on the way forward.

So, let’s get this straight. We give mangoes and get Harleys in return?
> When you think about it, it is a trade deal between two national icons. Indian riders get to enjoy Harleys and American foodies get to enjoy Indian mangoes. It’s a brilliant opportunity for both sides.

Hmmm...that sounds good but why did you make us wait for so long?
> (Laughs) We are sorry to make you wait, that is the best I can say. Actually when the barrier (which stated that no bike of 800cc and above will be allowed to be imported in India) was lifted in 2007, it was only then that H-D could start investing in the strategy. We wanted to do things right, have a long term strategy and come here with some gusto. And now you see it being fulfilled.

Was it difficult to meet the Indian norms? How do you like our tax and duty structure?
> We applaud the Indian government for having the foresight to choose an international standard like the EURO 3. This way manufactures have to meet one standard in their drive cycle and they can sell their products internationally and customers can also benefit because they don’t have to pay an additional cost for R&D. We already meet the requirements, as we are selling bikes in Europe.

As far as the tax structure goes, that’s going to be difficult. I politely disagree with the government’s take on it because they can’t argue that it is a protectionist rule since there are no domestic 800cc manufacturer and above segment. So, what’s happening is that Indian enthusiasts are being deprived of access to heavyweight motorcycling. We hope that we can help continue to fight that battle and if we can’t work it out with the government, we have to do it through our pricing strategy.

We wonder how do the front number plates and the saree guards look on a Harley.
> We have 12 Harleys registered in Delhi and they do have fairly robust license plates (laughs) for the RTO. This is okay because in some cases it fits nicely on the front forks. As far as the saree guard is concerned, what we found during the homogenization was that the heavyweight motorcycles seem to have been forgiven that feature mainly because it’s not particularly safe for a lady wearing a saree sitting sideways on an 800cc or above bike.

All bikers may not have lakhs of rupees stashed in their bank. How do they buy one of your legendary bikes?
> Our goal is to tie-up with a bank in India and provide very competitive retail finance for Indian enthusiasts. We haven’t secured that partnership as yet but we are in the early stages of starting those conversations. The worst thing I can imagine is for somebody who has a life long dream of owning a Harley to run into any kind of challenge on the financing side. (We already like this guy!)

Now that the finance part is taken care of, what are the options in your Indian portfolio?
> We are looking at launching between 12 to 15 models in India, representing every family that H-D has i.e. Sportsters, Dynas, Softails, Touring, V-Rod and CVO (Customized Vehicle operation). We are finalizing right now using feedback from the website, the riders and the product clinic that we did earlier. We hope to make that announcement by January 2010.

We heard that you might have some models for as low as Rs 7 lakh?
> Yes. Right now we are working at the price model and I am going to do everything I can to make it accessible. We have to be considerate about leaving enough dealers’ margin because a dealer is also going to invest in the experience that every Harley rider has. At the same time, we are going to be very aggressive in our pricing.

When and where can we check the bikes out?
> We are looking at establishing up to five dealers by 2010. We’d like to have dealers in Delhi, Mumbai, Bangalore, Chennai, Hyderabad and one in either Chandigarh or Ludhiana. Soon thereafter, we will be building the next set of dealerships for 2011. We are planning to bring in pure Harley into pure India, no short-cutting or holding back. Everything is going to come in full throttle.

Here’s a question from the Union guys - do you plan to start manufacturing in India?
> We are helping write the second chapter in India which is leisure motorcycling. If we see the demand, then maybe in the long term we could consider that option. But as of now there are no such plans.

With my salary, I’ll surely buy one of those mean H-D jackets. Will you be getting them here as well?
> When we open our dealerships, we will also have riding gear and accessories. We are planning to offer the full Harley-Davidson experience. How can you enjoy the motorcycle without having the jackets, the armour, the helmets and the gloves? We’ll be all in.

Talking about salary, Harley recently had to cut jobs back in the US but you are investing in India now.
> We have been looking at India for a very long time as rightly speculated by your magazine. With the changing economy and the increasing infrastructure in the country, this seems like the right time for the brand. Moreover, this is independent from what’s happening in Milwaukee. The Asian market is growing faster and what you are seeing in the US and Canada is that the markets are maturing and the year over year growth is flat but fairly steady.

Okay, getting a bit greedy...are there any plans to get your other brands here?
> Currently our portfolio is Pure-Harley-Pure-India. But as we see opportunities, we would love to introduce MV Agusta and down the road possibly Buell. But initially, it’s only going to be Harley-Davidson.

So, will we be bombarded with slick TV commercials, print ads and the drill?
> I’m a rider and I want to get people on bikes, period. My emphasis is to get as many people on bikes as soon as possible. I have 12 bike demo fleet registered and we took riders and enthusiasts out in Delhi and have received a great demand. We hope to do another ride in Mumbai and some other cities as well. No fancy advertising, arbitrary write-ups or fake studio photo spreads. It’s about getting out in the heat and dust and cruising.

Great! But what about the promised inside juice?
> We will be appointing the dealers in the first quarter and hopefully have the dealerships opened by third quarter so that you can have bikes by the festival season. (We’re buying extra firecrackers next Diwali)

How does it feel to be leading the Harley crew in India?
> It’s extremely exhilarating, challenging and rewarding. It’s just a dream job. It’s the greatest motorcycle brand in the world and this is the greatest market in the world. What could be better?

Now that you’ll be living in India, are you prepared?
> My family is from Delhi and I have been coming here all my life. It’s like a second home for me. I have settled in Gurgaon with my wife and kids and we are getting used to the rhythm of life here (says with a smile on his face). In the US, you start craving for kebabs and kulchas. You go to a second rate place only to discover that they don’t know what they are doing. In India, you get full access to all the good stuff and can watch cricket during the normal hours of the day. There are a lot of good things about being here. Of course, I am excited to ride here and bring H-D to Indian communities. We want to establish a long term relationship for the next 100 years to come. (We say amen to that)