Poor sales may force Harley-Davidson to shut operations in India

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KEY STORY

  • American motorcycle manufacturer Harley-Davidson Inc is planning to wind up its assembly operations in India owing to poor sales and no visibility for future demand.
  • The firm has reportedly approached a few automakers soliciting a possible outsourcing deal using its leased assembly facility at Bawal in Haryana, The Hindu has reported.
  • The decision is in accordance with the iconic motorcycle maker’s “rewire” strategy, which seeks to focus around 50 markets where the company is doing well, the report said.
  • Harley-Davidson India sold less than 2,500 units in the last financial year, making it one of its worst-performing international markets, it said.
  • “The company is evaluating plans to exit international markets, where volumes and profitability do not support continued investment in line with the future strategy,” the high-end bike maker said in July.
  • The motorcycle maker will likely run a skeletal operation to provide after-sales service for bikes already on the road in India, a person privy to the preliminary talks.

Harley Davidson India exit: Harley-Davidson shuts down India factory |  India Business News - Times of India

CONCLUSION

  • The US company, in March 2020, named a board member, hailed for turning around the Puma brand’s near-bankrupt business, as its interim chief. Jochen Zeitz was asked to take over after Chief Executive Officer Matthew Levatich stepped down following the Milwaukee, Wisconsin-based company’s worst sales performance in 16 years in the US.
  • In addition to international markets, Harley Davidson has failed to increase sales in the United States too. The US accounts for more than half of its motorcycles sold.
  • Falling sales in the past 12 quarters have forced the company to limit the production of its bikes to prevent price discount pressure and protect profit.
  • In 2019, the company’s bike shipment volume in the United States was the lowest in at least two decades. Global shipments were the lowest since 2010.

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