Motorcycle Global pricing.

[Lao Jia Hou]

You raise several interesting (and complicated) issues.

The price of a Harley would never be 41% less then it cost here, unless it was made there.

Certainly one would never see that with US companies/products, as the USA has strict anti-dumping legislation (both directions)

I am guessing we will see off-shore Harleys one day (well, maybe not me, but some of you yungins probably will). Many HD components are already Made in China (and Mexico), but final bike assembly is restricted to the USA (and, very recently & to a limited degree, India).

Related story:

I am helping a friend research/buy the new Ducati 795 Monster in Beijing. This particular model is only available inside selected Asian countries (China, Vietnam, Phillipines, Indonesia, India, etc.). It is assembled in Thailand, a country with FTAs with most Asian countries, including China. It does have some components manufactured in Thailand (mainly electronic).

We researched the MSRPs of the 2013 Ducati Monster 795 in some of these countries (ranked lowest to highest, and expressed in Chinese rmb):

India
599,000 Rupees = 58,000 rmb

Thailand
409,900 Baht = 80,000 rmb

Phillipines
570,000 Pesos = 80,000 rmb

Vietnam
350,000 VND = 100,000 rmb

China
119,000 rmb

Malaysia
66,888 Ringgit = 125,000 rmb

Indonesia
225,000,000 Rupiah = 131,000 rmb

The most obvious question she (the potential Chinese buyer) has is ... why is India half the price of China?

The most obvious economist's answer will be "because that is what the market will bare" based on relative incomes (related to PPP). Of course, if you ask an "expert" economist, you will get at least 2 more answers, most certainly including supply/demand, and probably also competitive pricing (although, in China, luxury pricing plays a prominent role).