Harley-Davidson plans to bid adieu to Indian market, factories to be shut

NEW DELHI:  At a time when automakers  have expressed dissatisfaction with India’s “high” taxation rates, iconic American two-wheeler maker Harley-Davidson announced on Thursday that it has decided to exit India a decade after its entry. Harley also said that it would close its manufacturing facility in Bawal (Haryana) and significantly reduce the size of its sales office in Gurgaon.

“The company is communicating with its customers in India and will keep them updated on future support,” the motorcycle maker said in a statement.

The move is being seen as a fresh blow to the government’s effort to attract global investment into India, particularly from companies that are looking to shift their facilities from China. The Indian government is planning to offer $23 billion in incentives to woo these firms, including production-linked tax breaks for automakers.

But, Harley is not the first American auto brand to the leave the Indian market—dominated by more economical and fuel efficient models than western in economies. In 2017, General Motors unplugged its India operations and sold its Gujarat plant, while Ford ceased independent operations last year, transferring most India assets to a JV with M&M.

US President Donald Trump had in 2018 also expressed his displeasure on high Indian tariffs. Harley says it is shifting its focus back to more profitable and core markets such as the United States even as demand for luxury bikes fall globally.