There is bad news for Harley-Davidson fans in India. American company Harley-Davidson has announced the closure of its production and sales operations in India. Actually, due to decreasing sales and reduced profits, the company has decided to discontinue business in India.
US-based bike manufacturer Harley Davidson plans to cut its spending by $ 75 million, in which it is shutting down manufacturing in India. The company is going to reorganize its business. Harley Davidson has an assembly plant at Bawal in Haryana, which was started in August 2009.
Harley Davidson has issued a statement
saying that it is closing its sales and manufacturing operations in India, as it exits some international markets. Two months ago, Harley Davidson revealed a strategy to focus back into more profitable core markets such as the United States.
The demand for Harley-Davidson bikes has steadily decreased in India in the last few years
If you talk about the financial year 2019, the sales of Harley-Davidson bikes in India was much less than 2500 units.
In fact, between April and June, the company was able to sell only 100 bikes between the Corona epidemic this year and the continuing slowdown in the auto sector. Harley Davids, which ventured into the Indian market 10 years ago, failed to hold its ground despite investment.
Due to the closure of Harley-Davidson assembly plant in India, bike dealerships in India will now have to import bikes from Thailand. There will be a huge jump in prices when ordered from Thailand. Because import duty will also have to be paid on import, which will increase prices.
Harley-Davidson is the third US automaker to cease operations in India since Donald Trump took office. Earlier, General Motors had consolidated its domestic operations and sold its Gujarat plant in 2017. In addition, last year, Ford had transferred most of its assets to Mahindra & Mahindra to the joint venture, while consolidating its business.