Harley-Davidson Inc. is looking for a partner with a manufacturing and distribution footprint to manufacture lightweight motorcycles for use in India and other Asian markets, said a senior executive at the company. The Milwaukee-based company, known for its heavy touring motorcycles, said last week that it would launch a 250cc 500cc motorcycle in India to boost sales in the world's largest two-wheeler market, as it deals with a customer base that ages and sales fall. in the U.S.

Industry sales are projected to grow 25 percent per year in the third largest economy in Asia in the 250 to 500 cc segment through 2021. "We are aware that, as a company, we have focused a lot on motorcycles big and heavy and our experience in the sector "The 500 cc space needs to grow," Marc McAllister, vice president of the Harley-Davidson product portfolio, told Reuters in a telephone interview on Friday.

"We are looking for a strategic alliance that can help us grow through product understanding, consumer understanding, assembly understanding," he said.

That could mean that Harley will not necessarily make the new motorcycles in their own facilities in India, and instead use a local partner, McAllister said. He refused to discuss names or details of potential partners.

Motorcycle sales in India, aided by increased discretionary spending, are experiencing double-digit percentage growth, compared to recent and moderate demand from consumers in the United States.

Attracted by the attractive growth prospects, the British motorcycle manufacturer Triumph and the German BMW have partnered with the Indian companies Bajaj Auto and TVS Motor, respectively.

Harley hopes the lightweight segment will act as a "bridge" to his brand, McAllister said, giving him the opportunity to make deeper inroads into a market where more than 20 million two-wheelers are sold annually.

The president of the United States, Donald Trump, had criticized the company for producing a plan for European clients abroad to avoid retaliation in a commercial dispute between the United States and the European Union.

Harley expects a foray into the light segment, along with other new product launches, will expand its operating margins and add up to $ 250 million in operating profits in 2022.Analysts are sceptical about profit targets since India is a highly competitive market in terms of costs and light bicycles are products with a historically lower margin.