Harley-Davidson enters partnership to build smaller bike in China
China Knowledge Online
Jun 24, 2019

Jun 20, 2019 (China Knowledge) - Bike manufacturer Harley-Davidson will be partnering up with China’s Qianjiang Motorcycle Co to build a new smaller motorcycle model.

The partnership aims to allow Harley to take a bigger share of China’s large bike and moped market while also cutting costs and allowing the company to increase its overseas sales segment.

The move by Harley comes after President Trump threatened to impose higher taxes on the company after it announced plans to move production for its European customers overseas as part of a longer-term strategy to deal with falling sales in the US and higher costs due to trade tariffs.

In response, the bike manufacturer had said that it will plan to move even more production out of the United States.

The new bike will have an engine displacement of 338 cubic centimeters and will be one of the smallest in the company’s history and will be sold in China starting from the end of 2020.

Harley’s existing range of motorcycles are generally larger and come with high price tags and engine capacities of more than 601 cubic centimeters. As a result, the company has faced difficulties in trying to penetrate the Asian market which is largely dominated by lightweight bikes and scooters.

The new bike which is said to be priced at an affordable range will be introduced in Asia after its initial launch in China and hopes to succeed where the company’s larger bikes have not managed to make an impact.

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