Harley-Davidson to roll out of the world’s largest bicycle market

0
63


Image copyright
Getty Images

Legend
Actor Jesse Metcalfe riding a Harley Davidson


Harley-Davidson is withdrawing from India, the world’s largest motorcycle market.

The iconic American motorcycle maker is shutting down sales and manufacturing operations, he said.

Harley’s move comes weeks after Toyota said it would not expand further in India due to the country’s high tax regime.

This exit is a blow to the efforts of Indian Prime Minister Narendra Modi to attract or retain foreign manufacturers.

The move involves $ 75m (£ 59m) in restructuring costs, around 70 layoffs and the closure of its Bawal plant in northern India.

The factory was opened in 2011, but Harley-Davidson struggled to compete with the local Hero brand as well as the Japanese Honda.

About 17 million motorcycles and scooters are sold annually in India.

No more setbacks

Although cheaper than many other developing economies, India has proven to be a difficult market for foreign automakers to break into.

General Motors pulled out of the country in 2017 as Ford agreed last year to transfer most of its assets into a joint venture with Indian vehicle giant Mahindra & Mahindra.

US President Donald Trump has previously complained about high taxes in India, specifically mentioning the levies on Harley-Davidson motorcycles.

India’s 100% import duties were reduced by 50%, but the brand was still struggling in the competitive market.

But Harley suffered from her own issues and recorded her first quarterly loss in over a decade between April and June of this year.

It cut hundreds of jobs under the leadership of its new CEO Jochen Zeitz and focused on major markets and models.

Harley sought to expand the brand beyond the baby boomers in the United States, with smaller models and fully electric versions.

Image copyright
Getty Images

Legend

Dennis Hopper and Peter Fonda ride Harley Davidsons in a scene from the movie Easy Rider.


Harley history

The iconic American motorcycle brand was founded in 1903 and has built a very loyal following. He has owner clubs all over the world.

He reached the world stage in 1969 thanks to the classic road movie Easy Rider starring Dennis Hopper, Peter Fonda and Jack Nicholson.

Its bikes, nicknamed “pigs,” are manufactured at factories in the United States, Brazil and Thailand, as well as in India.

LEAVE A REPLY

Please enter your comment!
Please enter your name here