Harley Works On Riding Indian Growth To $59

by Trefis Team
+7.66%
Upside
64.60
Market
69.55
Trefis
HOG
Harley Davidson
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Harley Davidson (NYSE:HOG) is targeting a 25-30% annual growth in the Indian market for the next five years. The iconic motorcycle manufacturer has launched a strategic dealer expansion drive across the country’s metros and select smaller towns, targeting young customers.  It has also launched a number of biker’s clubs to increase its brand appeal and bring together bike owners for planned weekend or overnight trips with families riding their Harley Davidsons.

It competes with major motorcycle manufacturers like Honda Motor Company (NYSE:HMC), Kawasaki Heavy Industries (PINK:KWHIY) and Yamaha Motors (TYO:7272). We currently have a Trefis price estimate of $59 for Harley Davidson, which is about 10% above the current market price.

See our full analysis of the Harley Davidson stock here

Harley Davidson has done in well in India since it started its operations in 2010. It has sold over 1,000 bikes and has almost 40% market share in premium bike segment of the country. It is seeing good demand from both metros and smaller towns, and is planning to serve them better through strategically placed dealerships. The dealership network now covers all major metros, and the company is looking to branch into smaller cities that are seeing huge demand. (( Harley Davidson seeks 25 pc growth; targets small cities, IBM Live, 13 May – 2012 ))

The company has recognized international expansion as one of the key drivers for growth in the coming years and is eagerly courting China and India to increase its sales. We estimate Harley Davidson’s international sales excluding Europe to increase from 38.1K currently to almost 49K by the end of our forecast period. International sales (except Europe) form approximately 9% of the company’s value, by our analysis.

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