Official: Harley Davidson to discontinue India operations

After various speculations that were hinting at Harley Davidson leaving the Indian market, the American manufacturer has now officially announced its exit from India. The company will shut down its manufacturing and sales operations in the country. The decision has been taken due to low sales in the country and a bleak growth outlook in the future.

Harley Davidson’s exit from India is part of the company’s attempts at restructuring its global operations. The bike maker has allocated USD 75 million as restructuring costs for the same. It is worth noting that the India exit isn’t Harley’s first step in its restructuring. The company has been trying to cut costs in its global business operations from over a year now.

As part of its India exit plans, Harley Davidson will shut down its manufacturing plant in Bawal, Haryana. The company will also significantly reduce the size of its main sales office in Gurgaon. Sales centers across the country will be closed. However, existing Harley Davidson owners will continue to receive service for their bikes through a small channel of service outlets.

It is worth noting that Harley Davidson’s official announcement of its exit plans in India might not mean the end of road for the American bike maker. The company has released an official press release titled ‘Harley-Davidson Rewires business model in India’. If one reads the entire document in detail, it does leave room for an unofficial presence of Harley Davidson motorcycles in India. This can be done through a partnership with an import firm that will sell these bikes at a premium in the Indian market. While this will surely increase prices of Harley Davidson motorcycles in the country, there might still be a possibility to see a new Harley being sold in India

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