Harley-Davidson Inc, the motorcycle making giant is now collaborating with China to make small and accessible motorcycles.
Harley-Davidson is collaborating with Qianjiang Motorcycle Company Limited towards making smaller motorcycles that will be introduced within a year. Through the collaboration, the company intends to increase its annual volume in international business by at least 50 percent by the year 2027.
These motorcycles will be much smaller than the previous models in the U.S. Once they are introduced into the market in China it will be extended to other Asian countries as well, says the company.
China has one of the largest markets in the motorcycle segment and this will create new pathways says the CEO and president of Harley-Davidson Matt Levatich.
Earlier last year, when Harley-Davidson said that it intended to move its production to Europe, to avoid tariffs, President Trump had threatened the company saying that tariffs would be raised on the company. He had said that the company would be boycotted if it manufactures overseas.
However, the expansion news from Harley-Davidson in China has not drawn any remarks from the President as yet.
Harley Davidson has chosen to collaborate with Qianjiang Motorcycle Company as it has the required experience to establish a good supply base, to develop the best displacement motorcycles and has the capacity to meet consumer requirements in an emerging market.
The General Manager of Qianjiang Dongshao Guo has also expressed his pleasure in collaborating with Harley-Davidson.
Though Harley prefers to make big and heavy motorcycles, the company is now intent on introducing smaller and lighter-weight vehicles in Asia, which is unlike its usual business. It has found that there are more buyers for smaller bikes than for the heavy ones.
Levatich says, “There are tremendous long-term opportunities in China”. He says that the sales of Harley-Davidson vehicles will increase by at least 6 percent every year between 2017 and 2022.