January 27, 2021

Harley-Davidson: Finish of India journey for Harley-Davidson might be close to, says report

Iconic American motorbike firm Harley-Davidson could shut meeting operations in India barely a decade after its much-hyped entry.

The event comes amid gross sales having did not get better and future demand showing bleak, The Hindu reported.

As per reviews, the high-end bike maker has despatched feelers to automakers for an outsourcing association utilizing its leased meeting facility at Bawal in Haryana. The corporate plans to focus primarily on 50 markets in North America, Europe and elements of Asia-Pacific that characterize a majority of its quantity and progress potential.

Harley-Davidson India offered fewer than 2,500 items within the final monetary 12 months and solely 100 bikes between April-June 2020, in response to trade officers, making India one among its worst-performing markets internationally.

“The corporate is evaluating plans to exit worldwide markets, the place volumes and profitability don’t help continued funding in step with the long run technique,” it mentioned in an announcement accompanying its second-quarter outcomes final month.

If Harley-Davidson exits, it could be the second departure of an American automaker from India — Basic Motors being the primary in 2017 — within the Trump period. Additionally, it comes simply months after the US president’s vigorous lobbying for decrease tariffs on Harleys.

The corporate declined to touch upon its India plans with a spokesman saying it “doesn’t touch upon hypothesis.” To dump unsold stock, the motorbike maker provided heavy reductions within the vary of Rs 65,000 to Rs 77,000 on two of its fashions.

Harley-Davidson is anticipated to proceed skeletal operations to offer after-sales help for its clients and sellers, and can also be prone to promote fully-built imported bikes, the individual mentioned.

The 2-wheeler trade in India is firmly caught in a deep enterprise downcycle. Based on Icra, gross sales are prone to decline between 16 and 18 per cent to round 17 million items in FY20-21.