After selling fewer than 2,500 units in the last financial year, Harley Davidson is looking to wind down its assembly operations in India, The Hindu reported. The iconic US motorcycle with a cult status has sent out feelers to a few automakers through consultants for a possible outsourcing arrangement using its leased assembly facility at Bawal in Haryana, the report said citing sources.
While the talks are in preliminary stages, the company officials are planning the exit also because they do not see a growth for future demand in India. According to a TOI report, the company has quietly taken down its Bronx streetfighter, slated for launch in 2021, from all its pages. But after an official update from the American bikemaker, it is confirmed that the streetfighter won’t be hitting the streets next year.
The vanishing act of Bronx streetfighter can be directly linked to the exit plans of the company in India.
The decision comes in the backdrop of Harley Davidson deciding to 'rewire' its 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". The company had said, in its second quarter results, that it was evaluating plans to exit international markets, where volumes and profitability do not support continued investment.
However, it will continue providing after sales support for motorcycle owners. It might also sell fully built imported bikes in India.
The bikemaker was also at the centre of a trade tariff debate between India and the US. The import duty on all completely built-up(CBU) motorcycles is currently at 50 per cent—which was at 100 per cent earlier and was reduced in 2019 by the Centre after a Trump-Modi telephonic conversation—but the US president criticised the import duty as still "too high" and "not acceptable". India had promised to further lower the tariff to single digits after Trump's India visit early this year.
Last month, it was reported that Harley Davidson had undertaken a massive restructuring process leading to the elimination of 700 positions and replacing its chief financial officer.
Harley Davidson, if indeed winds up its operations, will become the second American automaker to exit India after General Motors wound up its operations in 2017.
