Harley-Davidson may exit India


Barely a decade after its entry, Harley-Davidson Inc. is seeking to wind down its meeting operations within the nation because of weak gross sales and an absence of visibility for future demand, trade executives stated.

The enduring U.S. bike maker has despatched out feelers to a couple automakers via consultants for a doable outsourcing association utilizing its leased meeting facility at Bawal in Haryana, an individual aware of the preliminary talks stated.

The choice is consistent with its newest ‘rewire’ technique to give attention to about 50 markets, primarily in North America, Europe and elements of Asia Pacific that signify the “majority of the corporate’s quantity and progress potential”. In a press release accompanying its second-quarter outcomes final month, Harley- Davidson stated: “The corporate is evaluating plans to exit worldwide markets, the place volumes and profitability don’t assist continued funding in keeping with the longer term technique.”

Harley-Davidson India offered fewer than 2,500 items within the final monetary 12 months, trade officers stated.

If the corporate, which noticed U.S. President Donald Trump passionately foyer India for decrease tariffs on its two-wheelers, does certainly exit, it could mark the second departure of an American automaker, after Normal Motors wound up its home operations and offered its Gujarat plant in 2017.

The corporate declined to touch upon its quick plans for India and an exterior spokesman stated it “doesn’t touch upon hypothesis”.

The bike maker is predicted to proceed to run a skeletal operation to supply after gross sales assist for the bikes already on the street within the nation, to assist its sellers and certain promote totally constructed imported bikes, the particular person stated.

Harley-Davidson India offered fewer than 2,500 items within the final monetary 12 months and solely about 100 bikes between April-June 2020, trade officers stated, making India one in every of its worst-performing worldwide markets.

As lately as in July 2018, the corporate had shared its plans to faucet a rising center class by introducing “a 250-500cc bike inside 2 years in India”.

To dump unsold stock, the corporate lately supplied heavy reductions within the vary of ₹65,000 to ₹77,000 on two of its fashions.

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