Harley-Davidson Sales Double in China as Brand Expands Dealer Network
Harley-Davidson’s Chinese sales doubled in 2009, making China the company’s fastest-growing market and prompting plans for four more dealerships and new models tailored to local demand.
Harley-Davidson’s presence in China has seen significant expansion since its official entry into the market in 2005. According to Rodney Copes, vice president of international sales, sales in China doubled in 2009, making it the fastest-growing market for the iconic American motorcycle brand that year. This surge in demand is prompting the company to invest further in its dealer network and to develop new models specifically for Chinese consumers.
Harley-Davidson’s Rapid Growth in China
Expansion of the Dealer Network
When Harley-Davidson first entered China, it established dealerships in four major cities: Shanghai, Beijing, Qingdao, and Hong Kong. These locations served as the initial access points for Chinese customers interested in Harley’s large-displacement cruisers, which stand out in a market largely dominated by scooters and small motorcycles. By early 2010, these four dealerships were operational, catering to a growing base of motorcycle enthusiasts.
In response to the rapid growth in demand, Harley-Davidson announced plans to open four additional dealerships in 2010. The new locations, Wenzhou, Xiamen, Dalian, and Chengdu, are intended to broaden the company’s reach beyond the largest coastal cities and into emerging regional markets. This expansion strategy is similar to those adopted by other international automotive brands seeking to capture market share in China’s fast-evolving urban centres. The addition of these outlets would bring the total number of Harley-Davidson dealerships in China to eight by the end of 2010.
Adapting to Local Preferences and Challenges
Harley-Davidson recognises that success in China requires more than simply importing existing models. The company is developing new motorcycles tailored to the tastes and needs of Chinese riders. While specific details about these new models have not been disclosed, the focus is on adapting the product range to comply with local regulations and to appeal to consumer preferences. Large-displacement motorcycles, like those Harley-Davidson is known for, face restrictions in several Chinese cities, and high import tariffs result in prices that are significantly higher than those in the United States.
Despite these obstacles, demand for Harley-Davidson motorcycles in China has been fuelled by rising wealth among urban consumers and a growing interest in premium and luxury brands. The brand’s distinctive image and reputation for quality have attracted a loyal following, even as the majority of motorcycles on Chinese roads remain smaller and more affordable models.
Market Context and Industry Trends
Harley-Davidson’s expansion in China reflects broader trends within the global automotive and motorcycle industries. As growth in traditional markets such as the United States and Europe slows, manufacturers are increasingly turning to emerging markets like China to drive sales. Other brands, including Chevrolet and Peugeot, have also expanded their presence in China in recent years, seeking to capitalise on the country’s rapid urbanisation and the increasing purchasing power of its consumers.
The Chinese motorcycle market is unique in that it is dominated by small-displacement bikes and scooters, primarily used for daily commuting. However, there is a niche market for large, premium motorcycles, which appeals to affluent consumers and enthusiasts. Harley-Davidson’s strategy of expanding its dealer network and adapting its product range is designed to capture this segment, despite regulatory and economic challenges.
Looking Ahead: Opportunities and Challenges
As Harley-Davidson continues to invest in China, the company faces both opportunities and challenges. The planned opening of new dealerships in Wenzhou, Xiamen, Dalian, and Chengdu will help the brand reach a wider audience and tap into new regional markets. Developing models tailored to Chinese preferences and regulations could further boost sales and strengthen Harley’s position in the country.
However, the company must also navigate ongoing restrictions on large motorcycles in many cities and contend with high import duties that keep prices elevated. Success will depend on Harley-Davidson’s ability to balance its brand identity with the practical realities of the Chinese market, while continuing to appeal to the aspirations of its target customers.
