The corporate mentioned in an announcement on Thursday that it’ll shut its Bawal manufacturing unit in northern India and “considerably cut back” the dimensions of its gross sales workplace in Gurgaon, close to Delhi. Sellers will serve prospects by means of the top of their contracts and the corporate is exploring methods to proceed to promote its iconic motorbikes within the nation.
India is the world’s greatest marketplace for bikes and scooters, with greater than 17 million bought final 12 months, in line with the Society of Indian Vehicle Producers. Two-wheelers are by far the most well-liked technique of transport within the nation, which was additionally till lately one of many quickest rising markets for automobiles.
Information of the corporate’s retreat will come as a blow to Prime Minister Narendra Modi’s hopes of attracting extra international funding and broadening India’s manufacturing base. Ford (F) and Common Motors (GM) have each reduce operations in India in recent times.
The withdrawal is a part of an overhaul that Harley-Davidson (HOG) unveiled in July, which is able to see it streamline fashions and focus its vitality on North America, Europe and components of Asia Pacific. “A complete rewire is important to make Harley-Davidson a high-performance firm,” CEO Jochen Zeitz mentioned in an announcement on the time. The corporate was battling a hunch in gross sales even earlier than the coronavirus pandemic hit, which has additional dented demand for luxurious items.
In keeping with Reuters, Harley-Davidson is in talks with Hero MotoCorp, India’s largest two-wheeler producer, a couple of attainable distribution deal within the nation. Harley-Davidson declined to touch upon “hypothesis.”