Revealed: The secret behind the Harley Street 750’s Rs 410,000 price

When the Street 750 was launched at the Auto Expo earlier this month, it not only wowed the crowds at the Harley-Davidson pavilion but made the iconic brand accessible to a new group of customers with its stunning Rs 410,000 price-tag (ex-showroom, Delhi).

With such an aggressive price, Harley-Davidson has unleashed a price war of sorts at the premium end of the motorcycle market.

How did it achieve such a feat? That is the result of India’s growing stature as a global sourcing base. The Street 750 has a very high level of content sourced from Indian suppliers and that helped Harley- Davidson launch the Street 750 as its most affordable bike till date. Some, if not all, of the Street 750’s parts sourced from India include front forks, swingarm, body frame, cylinder head, engine parts, brakes and tyres.

It is, perhaps, the first time that such a high level of critical components is being sourced for any product by the 110-year-old company. According to an industry sources, the cost benefit to the OEM by this strategy could be 20 percent or more.

“A manufacturer of Harley-Davidson’s stature looks for both a high level of performance and aesthetics in the products that go into a bike. That is a challenge,” says an industry source.

 Meeting the global quality benchmark  

 What is interesting is that the orders are for the Street 750’s production for all markets. This reflects the growing competence of Indian vendors in production and processes while offering a cost advantage to their clients. Harley-Davidson India refused to comment on the level of the Street 750’s parts sourced from India, as it "does not break out details on region-specific sourcing".

In an email response, Anoop Prakash, MD, Harley-Davidson India, said: “We go to great lengths to ensure everything manufactured at our facilities around the world as well as at our suppliers lives up to the high standards of quality that are fundamental to our brand. Quality is top priority for Harley-Davidson, regardless of where we manufacture or sell motorcycles.” That perhaps explains the 3-4 rounds of evaluation of the vendors by Harley-Davidson’s sourcing team before they finally signed the contract.

The evaluation processes commenced in mid-2010 and the Street 750’s production began around September last year. Autocar Professional learns that Harley-Davidson is planning to produce 20,000-25,000 units of the motorcycle annually.

The Street 750, first displayed at the EICMA Motor Show in Milan last year, is the first model by Harley-Davidson India to be locally manufactured at the Bawal plant in Haryana. The plant will also make the Street 500 model (meant only for global markets, excluding India). After having surveyed over 3,000 young consumers from 10 countries including India, the Street 750 is a more manageable, maneuverable motorcycle with an all-new suspension and a ground clearance of 144mm. It is powered by a four-stroke, 750cc, V-twin engine, with a torque output of 6.62kgm at 4000rpm and mated to a six-speed transmission.

Harley-Davidson India has sold a total of 1,526 units in India between April 2013-January 2014 against 1,057 units sold during the same period a year ago, a growth of 49.46 percent.

With the introduction of the most affordable Harley, there could be a strong demand for the Street 750 when bookings begin from March 1. And the company could see much healthier numbers in 2014-15.

In a move to make the Street 750 more attractive to its customers, Harley-Davidson India has announced new finance options. Customers who complete their booking of the model in the month of March, will have their processing fees waived on their entire loan amount on loans originated by HDFC Bank and ICICI Bank.  The new offer is designed to get customers to be the first to ride the company’s latest global offering. Qualifying customers can purchase the Street 750 for a minimum down-payment of Rs 91,471 with an EMI of Rs 8,309 over a five-year period. In addition, HDFC Bank will further support motorcycle customisation by financing accessories up to Rs 50,000 at the time of purchase of the Harley-Davidson Street 750, and up to Rs 2 lakh on the purchase of other models.