U.S. motorcycle maker Harley-Davidson Inc. opened its first authorized
dealership in China on Saturday amid hopes its rumbling bikes will strike a
chord with wealthy Chinese.
|
A salesman at the
Harley-Davidson's first authorized dealership in China, tends to one of
the bikes at the showroom in Beijing 07 April.
[AFP]
|
But the Wisconsin-based company has
acknowledged ownership curbs on motorbikes in most Chinese cities could mean a
slow journey in the fast growing nation.
The new dealership would sell a variety of Harley models, offer training for
would-be bikers and organize events, Harley said in a statement. Harley, whose
bikes have become an icon in America, has said its long-term China strategy is
to address riding restrictions over time and to help develop a leisure-oriented
motorbike market as consumer buying grows.
Company officials said it was finally entering the Chinese market because of
China's expanding wealthy class and growing taste for luxury goods.
"Harley-Davidson recognizes Chinas economic growth and
its long-term potential as a market for the companys motorcycles," Harley
spokesman Bob Klein told reporters.
Chinese motorcycle
enthusiasts look at Harley-Davidson bikes outside a newly-opened
dealership in Beijing April 8, 2006.
[Reuters] |
"The Beijing dealership represents an important move forward in bringing the
Harley-Davidson lifestyle to motorcycle enthusiasts in China."
However, at prices up to 90 percent more than in the United States due to
customs duties and other taxes, only the very rich can afford the bikes, which
cost between 100,000 and 300,000 yuan (US$12,300 and US$37,000) each in
China.
In addition, many Chinese cities, including Beijing and Shanghai, ban
motorcycles from city center streets and highways.
China's roads are among the most dangerous in the world, with more than
100,000 deaths a year, largely from unsafe driving and poor enforcement.
Cities also restrict the number of licenses they issue for motorcycles.
The company does not expect significant sales initially, recognizing that the
market for imported leisure motorcycles is just emerging.
"Harley-Davidson's longterm strategy in China seeks to address the riding
restrictions over time and to help lead the development of a leisure-oriented
heavyweight motorcycle market as consumer buying power grows," the company said
in a recent statement.
The dealership, which already has a large rider's club, will offer rider
training, organized rides and events.
There are already about 1,000 Harleys in China, but they were smuggled in and
the owners acquired them with great difficulties, said Hollis Zhao, the
dealership's general manager.
(For more biz stories, please visit Industry Updates)