Harley-Davidson sets sights on China market

23 January 2006

Mumbai: The iconic American Harley-Davidson will soon be cruising on Chinese roads. If all goes well for its manufacturer, Harley-Davidson Inc, the largest US motorcycle maker, will open its first dealership in China this year to cash in on the booming economy.

Details of the dealership will be provided in the first half of 2006, according to Harley-Davidson spokesman Bob Klein, who refused to divulge the location, investment amount and expected annual sales.

"Entering international markets is always a challenge, and China is going to be the same way," Ziemer was quoted as having told the China Daily. "There are a lot of barriers."

The company reported that the international sales of its motorcycles rose 15 per cent last year, compared with a US gain of 4.2 per cent. The quarter gave the legendary bike-maker its 20th straight year of record revenue, earnings and retail motorcycle sales. For 2005 it reported a net income of $959 million and targets to ship out around 350,000 units in 2006. The Milwaukee-based company sells four of every five sales in the US and is trying to expand in other countries.

Last year, it reorganised its sales operation in Germany to boost European business and opened its first dealership in Russia since 1917.

The company sells about 50 per cent of all new motorcycles in the United States with engines 650cc or larger, and almost one in four world-wide. Harley-Davidson''s retail prices can exceed 35,000 US dollars with accessories and custom paint jobs, the report noted.