The iconic American bicycle manufacturer Harley-Davidson said today that it will roll out its financial services in India in the next two months to offer easy loans to its customers.
The company’s wholly-owned Indian subsidiary is in the final stages of negotiations with the bankers to launch the services in the coming days.
“For this calendar year, we will launch our financial services. It will be known as Harley Davidson Financial Services,” Harley-Davidson India CEO Vikram Pawah told PTI.
The company is working with its “business partners” at the moment to offer the financial solutions in India, he added.
“Of our total sales, 50 to 60 percent of the bikes are spent on finance. So that’s a huge amount. We want to offer personalized loans to people so they can buy our products at their convenience,” said Pawah. .
Harley-Davidson customers can currently borrow from different banks and the company is associated with HDFC and Yes Bank.
Speaking of sales, Pawah said: “The market was a bit slow in recent months due to general macroeconomic problems. However, after GST comes into effect, it will improve again.
When asked about the company’s sales performance, he said Harley-Davidson expects a “positive year” in 2016.
“Although sales fell slightly in recent months, we will close the year on a positive note. We expect to achieve high single-digit growth in India,” he added.
Pawah said that leisure cycling in India is in a nascent stage and the company will continue to invest in the country to build the market.
Harley-Davidson India today opened its 23rd dealership in Guwahati, the first in the Northeast, with the aim of achieving good growth in the region.
“The future is in Tier II cities and the next phase of growth will occur in such small places. We will also be rapidly expanding into other Tier II cities in the coming months,” Pawah said.
Stating that the northeast will contribute substantially to its growth, he reported that the region already has around 100 Harley-Davidson motorcycle owners, half of whom are in and around Guwahati.
“Growth in the Northeast will be at a much higher rate than the national average. One reason for this is the low base, but this place has an atmosphere conducive to having a wonderful Harley riding experience,” Pawah said.
Good road network, scenic natural beauty and “good-hearted” people are some of the advantages of the Northeast, he added.
In addition to large cities such as Delhi, Mumbai, Bengaluru, Chennai, and Kolkata, the company now has showrooms in smaller cities such as Lucknow, Nagpur, Surat, Indore, Coimbatore, Ludhiana, and Calicut, among others.