- Harley is the third US auto company to expand its business in India
- In 2017, General Motors closed its business in India
- Last year, Ford also decided to exit the Indian market.
- Harley Davidson has been able to sell only 27 thousand bikes in 10 years
American motorcycle giant Harley Davidson has announced the closure of its business in India. Has announced the closure of its sales and manufacturing operations. The company announced the Global Restructuring Initiatives last year. Under this, business was to be closed in countries where the company’s sales and profits are low. The consolidation of business in India is also part of this strategy. Harley is the third US auto company to expand its operations in India. In 2017, American car company General Motors closed its business in India and sold its plant in Gujarat. Last year, Ford transferred most of its assets to Mahindra & Mahindra to Joint Venture.
Sold 27,000 bikes in 10 years
Harley bikes make a place 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.
Market outcry, investors lose more than Rs 11 lakh crore
So many people will get jobs
As a result of Harley’s move, around 70 employees of the company will be employed in India. At the same time, the company has been transferred to Singapore, Managing Director of India, Sanjeev Rajasekharan. Where he will serve as the principal officer of Asia. The company estimates the move would cost $ 75 million in restructuring. Which includes the cost of a lump sum of about $ 3 million on expiration, about $ 5 million on non-current assessment adjustments and $ 67 million on contract termination.
Regardless of the industry, the government quickly formulated a national toy policy
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 sale. 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.