Harley-Davidson shuts sales and manufacturing operations in India

Harley-Davidson shuts sales and manufacturing operations in India

Harley-Davidson Inc. stated that it would discontinue its sales and manufacturing operations in India, effectively abandoning the world’s biggest motorcycle market after a decade of unsuccessful efforts to gain a foothold.

The company has been struggling for years to grow sales but has failed to grow the retail in the past 14 quarters.

Also Read | After Akali Dal, now JD(U) wants revised farm bills, demands MSP guarantee

Harley had spent recent months moving dealerships in the country to cheaper locations.

Harley-Davidson India Expands In Smaller Cities With First Concept Store - carandbike

Closing of the stores involves $75 million in restructuring costs, some 70 redundancies and the closure of its Bawal plant, walking away from a market worth about 17 million bike and scooter sales a year.

However, they will retain only a scaled-down sales office in Gurgaon, south of New Delhi.

Harley Davidson bikes: Harley-Davidson to open brand stores in India - Times of India

Chief Executive Officer Jochen Zeitz, who took the reins at the company in February, unveiled a major “Rewire” in July to boost profits by reducing Harley’s product portfolio by 30% and investing in 50 markets with growth potential in North America, Europe and parts of Asia Pacific.

Also Read | New feature of Google Maps will soon show COVID-19 outbreaks in your area

India was one of the markets the company at that point committed to investing in more heavily.

Nine-Bridges Harley-Davidson, Ahmedabad -Evo India

Harley said it now expects total restructuring costs of about $169 million in 2020, but warned that the restructuring program, referred to internally as “The Rewire” was likely to incur more charges.

-PTC News