End of India trip for Harley-Davidson could be near\, says report
Iconic American motorcycle company Harley-Davidson may close assembly operations in India barely a decade after its much-hyped entry.
The development comes amid sales having failed to recover and future demand appearing bleak, The Hindu reported.
As per reports, the high-end bike maker has sent feelers to automakers for an outsourcing arrangement using its leased assembly facility at Bawal in Haryana. The company plans to focus mainly on 50 markets in North America, Europe and parts of Asia-Pacific that represent a majority of its volume and growth potential.
Harley-Davidson India sold fewer than 2,500 units in the last financial year and only 100 bikes between April-June 2020, according to industry officials, making India one of its worst-performing markets internationally.
"The company is evaluating plans to exit international markets, where volumes and profitability do not support continued investment in line with the future strategy," it said in a statement accompanying its second-quarter results last month.
If Harley-Davidson exits, it would be the second departure of an American automaker from India — General Motors being the first in 2017 — in the Trump era. Also, it comes just months after the US president's vigorous lobbying for lower tariffs on Harleys.
The company declined to comment on its India plans with a spokesman saying it "does not comment on speculation." To offload unsold inventory, the motorcycle maker offered heavy discounts in the range of Rs 65,000 to Rs 77,000 on two of its models.
Harley-Davidson is expected to continue skeletal operations to provide after-sales support for its customers and dealers, and is also likely to sell fully-built imported bikes, the person said.
The two-wheeler industry in India is firmly caught in a deep business downcycle. According to Icra, sales are likely to decline between 16 and 18 per cent to around 17 million units in FY20-21.