New Delhi, Feb. 7: Superbike manufacturers are lobbying the Indian government for a reduction in import duties before they look at assembling in the country.

Foreign giants such as America’s Harley-Davidson and Japan’s Suzuki Motorcycle are fretting over the high duties, which are now 105 per cent.

Harley has recently announced its plans to bring 12 models later this year, while Suzuki has introduced two superbikes last year.

The high prices have affected sales, and manufacturers will not look at the assembly option with such small volumes.

Honda Motorcycle & Scooters India, has sold just 60 units of its CBR1000RR Fireblades and the CB1000R that were launched last year. The bikes are made in Honda’s Kumamoto factory in Japan.

“We feel that lack of good roads and testing facilities, small market size and restriction in the production facility of high precision bikes, too, play their role in adversely impacting the sales,” said N.K Rattan, head of sales and marketing, Honda Motorcycles.

A feasibility study done by Suzuki Motorcycle India suggests that assembling bikes in India will reduce retail prices by 50 per cent and push sales volume up 30 per cent.

“We sell two superbikes — 1300cc Hayabusa and the 1700cc Intruder — priced upwards of Rs 12.5 lakhs. In the last one year, the company has sold 140 units, about 16-17 bikes a month. Unless volumes go up to at least 150 bikes a month, it will not make sense for the company to assemble here. Import duties need to be reduced,” Atul Gupta, vice-president of sales and marketing, Suzuki Motorcycle India, told The Telegraph.

Gupta, however, said 140 units were well above the company’s expectation.

Harley plans

Harley-Davidson India, which will start selling its models in June, will have the first lot shipped to dealers from April as completely built units.

Harley officials refused to say whether they had plans for facilities in India.

“Focus at the moment is on bringing bikes on Indian roads in June. Our plans for the market are to import a line-up of 12 Harley-Davidson motorcycle models for sale this summer, when our five dealerships open throughout the country,” Anoop Prakash, managing director of Harley-Davidson India, said.

The company’s bikes have been competitively priced to meet market demand.

The starting range of Harleys, including the 883 Sportster, is priced at Rs 6.95 lakh (ex-showroom), while the current crop of imports of its rivals costs over Rs 10 lakh.

Analysts, too, feel small volumes prevent superbike manufacturers from looking at assembling.

“The volumes are just too small. It will take a long time before any company decides on getting their products through a completely knocked down route. For the minimal units they sell, it will make no economic sense to invest in an assembly line-up,” said auto analyst Hormazd Sorabji.

The iconic US bike maker’s line-up includes the Sportster, Dyna, VRSC, Softail, and Touring. Harleys have engine capacities from 883cc to 1,803cc.