The iconic American auto-giant Harley-Davidson will exit India in the future, due to a lack of sales and demand.

Highlights:

• Poor Sales Figures In India.
• In 2017, General Motors closed its business in India.
• Harley Davidson has been able to sell only 27 thousand bikes in 10 years

Overview

Harley-Davidson has announced to end operations in India, including sales and production of motorcycles.

The company will also wind up operations from existing markets with low sales and profitability, including India.

H-D commenced operations in India in 2009 and currently has a wide range of products in its portfolio.

However, the demand for H-D bikes in India has plummeted over the last few years.

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Reason to quit from the Indian market?

The decision to shut the assembly is in line with its ‘rewire’ strategy to focus on about 50 markets, mainly in North America, Europe, and parts of Asia Pacific that represent the “majority of the company’s volume and growth potential.”

In a statement accompanying its second-quarter results last month, Harley- Davidson said: “The company is evaluating plans to exit international markets, where volumes and profitability do not support continued investment in line with the future strategy.”

The American automaker doesn’t see any future growth or demand in India.

Harley-Davidson India sold fewer than 2,500 units in the last financial year.

Harley-Davidson will be the second automaker to shut operations in India since Donald Trump took over the presidency.

General Motors wound up its domestic operations and sold its Gujarat plant in 2017.

However, it will continue providing after-sales support for motorcycle owners. It might also sell fully built imported bikes in India.

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Poor Sales Figures In Indian Market

Harley bikes come in the premium segment and the company has decided to exit the Indian market due to the ever-decreasing demand in India.

Harley Davidson entered the Indian market a decade ago but has so far sold only 27,000 bikes.

Royal Enfield, the leader in this segment, sells only this bike in a month.

First Dealership In 2010

Only 5 percent of Harley’s total sales come from the Indian market. Harley currently has an assembly plant in Haryana, where it assembles motorcycles solely for local sales.

At the same time, the company also imports fully manufactured motorcycles in India.

 The assembly plant located in Haryana was started in August 2009. In July 2010, the company appointed its first dealership at the same branch.

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