Harley Davidson to exit Indian market, plans to shut its lone plant in Haryana

The iconic American motorcycle maker Harley Davidson on September 24 has finally decided to discontinue its manufacturing operations in India due to its failed efforts to gain a foothold in the world's biggest motorcycle market. In recent months, Harley Davidson moved its manufacturing plants to cheaper locations across the country following the advice of its executives that moving to cheaper locations will help in reducing the manufacturing cost as well. But, the motorbike manufacturer did not yield the desired results. This decision involves a cost of over $75 million in reorganising its manufacturing units, around 70 redundancies and closing of its only manufacturing plant in Bawal, Haryana. 

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According to Harley Davidson India, these actions are aligned with the 'rewire' which will continue till the end of 2020 and may result in the new strategic plan. Earlier this year, the American motorcycle brand was in talks to join hands with an Indian motorcycle brand but did not specify any names. If you own a Harley Davidson then you do not need to worry as the company aims to keep its Gurugram's sales office. 

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Harley Davidson to shut its plant in Bawal, Haryana

Harley Davidson announced its move to exit the world's biggest motorcycle market on Thursday. According to the reports by a news agency, growth in the domestic sales in India has slowed down and over 18 per cent decline has been witnessed in the sales of cars and motorbikes. The US motorcycle company which entered India in 2010 has 25 outlets in India. So far, it has managed to sell over 25,000 units. Amid COVID-19, Harley Davidson has reported a decline of approximately 64 per cent in its sales volume.

In June 2019, the US President Donald Trump said that India's 50% import tariff on Harley Davidson is unacceptable as we charge them nothing. In the past, there have been many instances when Harley Davidson requested India to decrease its import tax. 

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