After a decade of service Harley Davidson to depart from India
The company earlier in the year said that it planned to cut down its product portfolio and depart from lower volume markets, without clearly describing which ones.
New Delhi, India:
American Motorcycle Manufacturer Harley-Davidson India on Thursday 24th September announced that has decided to finish its sales and manufacturing operations in India, after repeated attempts to set its foot in the world’s biggest motorcycle market.
The brand is successfully leaving the country high and dry. In recent months the company was looking for moving dealerships in India to low-priced locality.
The company will lose a market worth market worth about 17 million bike and scooter sales a year and also involves $75 million in revamping costs, some 70 dismissals and the shutting down of its Bawal plant. Only a limited sales office in Gurgaon, south of New Delhi will be hanged on.
For Prime Minister Narendra Modi’s who has been continuously strategising to encourage domestic manufacturing to keep more of the fruits of a gigantic home consumer market in India also would have been taken aback by the company’s departure.
Chief Executive Officer Jochen Zeitz, who clasped the control in the company around February, revealed a crucial “Rewire” in July to increase profits by decreasing Harley’s product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe and parts of Asia Pacific.
The company at that time also committed to invest more steadily in India but on Thursday it was said that the move to leave was being pushed since Aug. 6.
Harley says that it now awaits total revamping costs of about $169 million in 2020, but has alerted the revamping program to internally refer as “The Rewire”.
Once again India which is still far inexpensive and needy comparatively to most of the developing economies, with which it competes for investment, has proved to be an uncongenial market for other auto industry giants. But this departure will upset a lot of Harley Davidson fans.
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