Harley-Davidson Navigates Global Supply Chains and New Markets
Despite its iconic “Made in the USA” branding, Harley-Davidson relies on a complex global network for parts and is actively expanding into new international markets to fuel future growth. The American motorcycle giant, while maintaining important manufacturing operations domestically, sources components from countries including China, Germany, and india, and is forging strategic partnerships to reach new customer bases in Asia.
According to a company release,Harley-Davidson’s appeal stems in part from its American heritage,a distinction that resonates strongly with its domestic consumer base. Though, a review of Harley’s official parts catalog reveals that not all components are American-made. Parts such as mufflers, air cleaners, seals, and some engine assemblies are listed as “Made in China.”
Despite the presence of Chinese-made components, Harley-Davidson does not currently operate a manufacturing facility within China. The bulk of Harley-Davidson motorcycles are assembled in U.S. factories – three in Wisconsin and one in Pennsylvania – with additional production occurring in Brazil and Thailand to serve international customers. One analyst noted that over 2,500 Chinese manufacturers currently produce aftermarket parts compatible with Harley-Davidson motorcycles, though there is no evidence these parts are used in the official assembly process. The company also sources parts from Germany, Italy, Japan, Mexico, and Taiwan, integrating them with American-made components during final assembly.
Expanding into New Territories
Harley-Davidson is actively pursuing growth beyond its traditional markets, with a particular focus on Asia. As 2023, the company has partnered with qianjiang Motorcycle Co. to produce smaller motorcycles – the X350 and X500 – specifically targeted toward first-time riders in Asia. These models represent a departure from the larger, more traditional Harleys familiar to American consumers, but are intended to broaden the brand’s appeal and introduce it to a new demographic.
The company has also established a significant partnership with Hero MotoCorp in India, first announced in 2020. This collaboration allows Hero to sell, service, and distribute Harley-Davidson motorcycles throughout India, and also sell branded apparel and parts. Hero MotoCorp is also licensed to develop and sell Harley-Davidson motorcycles locally, resulting in the 2023 introduction of the X440 – a model currently unavailable in the American market.
By manufacturing motorcycles in India, Harley-Davidson circumvents high import tariffs and leverages cost-effective local production. Furthermore, the partnership provides access to Hero’s extensive distribution network, which encompasses over 100 locations across India. A senior official stated that this strategy is a key component of Harley-Davidson’s plan to expand its global footprint and expose its iconic brand to a wider audience.
Why is Harley-Davidson expanding internationally? Harley-Davidson is seeking to offset slowing sales in its traditional north American market and tap into the rapidly growing motorcycle markets in Asia, notably India and China. The company aims to reach a wider customer base and diversify its revenue streams.
Who are Harley-Davidson’s key partners in this expansion? The company’s primary partners are Qianjiang Motorcycle Co. in China and Hero MotoCorp in India. Qianjiang produces smaller displacement motorcycles for Asian markets, while Hero handles sales, service, distribution, and local production in India.
What specific models are being introduced in these new markets? Harley-Davidson has introduced the X350 and X500 motorcycles in Asia through its partnership with Qianjiang. In India, Hero MotoCorp has launched the X440, a model not currently available in the U.S. market.
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