All-new X440 is Harley-Davidson's best bet to cross India's tariff hurdles
Harley-Davidson has finally launched its much-awaited X440 entry-level motorcycle in India at a price range of ₹2.29-2.69 lakh (ex-showroom). The motorcycle is unique in many ways. The X440 is the most affordable motorcycle from the iconic US brand. It also marks the comeback of Harley-Davidson in the country. Also, it has been designed, developed and most importantly manufactured in India by Hero MotoCorp in India, which helped Harley-Davidson to finally cross the tariff hurdles of the country.
Back in 2020, right in the middle of the Covid-19 pandemic, Harley decided to end its manufacturing operations in India, which was touted as the end of the American motoring dream in India. The reason behind the shutdown of manufacturing operations in the country was that even for its entry-level models like Street 750, which was selling ₹5.34 lakh (ex-showroom), Harley was not able to build a vendor base for itself.
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Watch: Harley-Davidson X440 launched in India: First Look
The indigenisation levels were pretty low across the entire Harley range that was on sale in the country. The imported components resulted in attracting import duties leading to higher costs across the board. This was eventually hurting the company's sales in the country, while at the same time, other premium motorcycle brands were increasing their localisation to achieve lower pricing. The low sales and high import tariffs in India had been bothering Harley for a long time.
Former US President Donald Trump had said in 2019 that 50 per cent tariffs on Harley-Davidson motorcycles in India were unacceptable. Then as part of its Rewire program, Harley-Davidson decided to ride along with Hero MotoCorp for the sale and distribution of its motorcycles in India. Now, after more than three years of the two companies joining hands, the X440 has been launched, which has been co-developed by Harley and Hero MotoCorp, marking the beginning of a new journey for the American brand in India. Harley is hoping to overcome India's high tariff hurdles with the new X440.
Not only Harley-Davidon but for Hero MotoCorp too, the X440 is a milestone product. The Indian two-wheeler brand has been keen to enter into the premium segment for a long time. It has been the undisputed leader in the commuter segment thanks to its range of 100-125 cc motorcycles. Over the last few years, it has been trying to introduce premium products by launching 160 cc and 200 cc models. However, those were not enough to put the brand in the elite league of premium motorcycle manufacturers. The collaboration with Harley came as the light at the end of the tunnel for the company and the X440 comes as a key product sitting on top of the brand's premiumisation strategy. It will directly challenge the Royal Enfield Classic 350, which is one of the bestsellers in India for a long time.
As Hero MotoCorp's executive chairman Pawan Munjal said during the launch of the X440, the association with Harley is the third chapter for the company after its collaboration with Honda and later being rebranded as Hero MotoCorp. No matter what, it is clear that there is a lot riding on the X440 for both Harley-Davidson and Hero MotoCorp.
