US motorcycle-maker Harley-Davidson has reportedly decided to end operations in India, including sales and production of motorcycles, as part of its restructuring exercise under ‘The Rewire’ programme.
The company said that it expects $75 million in additional restructuring costs for 2020 and has opted to halt sales and manufacturing operations in India. The announcement comes two months after Harley unveiled a strategy to shift focus back to more profitable motorcycles and core markets such as the United States.
Poor sales record and a dented demand impacted by the Covid-19 forced the bike maker to exit the Indian market. Harley-Davidson India sold less than 2,500 units in the last financial year, making it one of its worst-performing international markets. About 70 of Harley-Davidson’s employees will be laid off as a result.
Harley-Davidson commenced operations in India in 2009 and currently has a wide range of products in its portfolio. The company has an assembly unit in Bawal, Haryana. A couple of years ago, Harley had tied up with a Chinese company Qianjiang to build a new motorcycle having a sub 350cc engine. The launch was supposed to take place this year, but there has been no news of the project in recent months.
