China’s population is almost 2,300 times greater than that of Milwaukee, where Harley-Davidson Inc. (HOG) is based. The motorcycle maker still has more customers in its hometown.
About 100 cities in China, including Beijing and Shanghai, have restrictions that include banning two-wheel vehicles from elevated highways and major thoroughfares to curb noise and thefts, according to the state-affiliated Society of Automotive Engineers of China. That has stymied Harley’s growth in the world’s most populous nation.
“Regulations are a pain,” said Shanghai businessman Calvin Chen, who owns a $50,000 Harley V-Rod Muscle. “There are many roads you can’t ride on, and the rules differ from place to place.”
Harley is lobbying the Chinese and American governments to ease those laws in an effort to increase sales by as much as 40 percent a year through 2016, said Sean Jiang, its managing director for China. The biggest U.S. motorcycle manufacturer is quadrupling its number of dealerships and supporting riding clubs to capitalize on a luxury-car market that J.D. Power & Associates said will grow by about 35 percent this year.
“Any investment in China without addressing the regulatory requirements will be a castle built on sand,” said Jiang, who is based in Shanghai. “We need to be proactive in engaging with the government.”
About 100 cities in China, including Beijing and Shanghai, have restrictions that include banning two-wheel vehicles from elevated highways and major thoroughfares to curb noise and thefts, according to the state-affiliated Society of Automotive Engineers of China. That has stymied Harley’s growth in the world’s most populous nation.
“Regulations are a pain,” said Shanghai businessman Calvin Chen, who owns a $50,000 Harley V-Rod Muscle. “There are many roads you can’t ride on, and the rules differ from place to place.”
Harley is lobbying the Chinese and American governments to ease those laws in an effort to increase sales by as much as 40 percent a year through 2016, said Sean Jiang, its managing director for China. The biggest U.S. motorcycle manufacturer is quadrupling its number of dealerships and supporting riding clubs to capitalize on a luxury-car market that J.D. Power & Associates said will grow by about 35 percent this year.
“Any investment in China without addressing the regulatory requirements will be a castle built on sand,” said Jiang, who is based in Shanghai. “We need to be proactive in engaging with the government.”
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