Why Harley -Davidson leaving India?

 

Harley Davidson may not manufacture his bike in India anymore, due to low sales performances or and announcements from the global management.

In 2009, this company began his production in India ,Bawal(Haryana).

Before the Covid-19 pandemic, the industry was already going through a prolonged slowdown. The pandemic has only made things worse, particularly for the premium segments in the country that is the largest two-wheeler market. 

Harley Davidson also costs high in comparison to any other two wheeler product in India. And the Indian street doesn’t need so much powerful engines because it also cost heavy for pocket not just for fuel but also for maintenance.

In India, Royal Enfield bikes have the most powerful engines which are approx. 350cc.And it is also one of the most selling bikes in India.

In India, data from the Society of Indian Automobile Manufacturers (SIAM) showed that the company’s domestic cumulative sales figure in the 2019-20 financial year was just under 2,500 units (2,470 for 2019-20 vs 2,676 for 2018-19). In comparison, Royal Enfield sold just over 42,000 units in FY 2019-20, according to SIAM.

If in case the company’s exit plans are true and there is the import of motorcycles, it will push up the cost of buying significantly due to the high import duties and taxes that are imposed on completely built units (CBUs). In fact, US President Donald Trump has repeatedly hit out at India for the high cost of importing H-D motorcycles to India. 

India is primarily a mass commuter segment motorcycle market. Though there are takers for the big bikes, sales of premium segment motorbikes are very small compared to the overall market. 

Recently, H-D had announced prices for its BS-VI range and had even slashed prices of its cheapest model (Street 750 is now Rs 4.69 lakh, ex-showroom Delhi). The company sells 13 models in India. The Fat Boy has priced at Rs 18.25 lakh, while the CVO Limited is around Rs 50 lakh.

So, H&D have to compress the power of engines , increase the fuel efficiency and most important opens a lot of service center in approx. every city in India . These things can bring H&D back in Indian market.


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