If media reports are to be believed, American motorcycle manufacturer Harley Davidson could exit the Indian market. The company is aiming to concentrate on key markets and may exit markets where volumes and profitability didn’t justify continued investment.
The US based automaker has also reportedly contacted some other automakers to use its leased assembly facility at Bawal in Haryana. Harley Davidson Chairman Jochen Zeitz said that the company will focus on about 50 markets where it generates high sales volume or has growth potential.
Harley Davidson is considering an exit from markets which generated less sales and profitability as part of its restructuring project, which is called Rewire. It is claimed that Harley Davidson has allowed regional offices to make decisions related to the local business.
The company is also planning to reduce the number of models by 30 percent. Harley plans to invest on products and platforms that offer greater return. In India, Harley delivered 2,500 units locally and exported 2,100 units during the fiscal year ending March 2020. On the other hand, the company sold about 210,000 motorcycles globally during the same period. During April-June period, Harley Davidson India’s sales declined by 87% to 106 units. The export has been reduced by 40% to 229 units.
