US motorcycle maker Harley-Davidson is reportedly looking to exit the Indian market and shut down its assembly operations in the country, Hindu Business Line reported on Thursday. The motorcycle maker has reportedly sold less than 30,000 bikes in the country ever since it entered the market a decade ago.
According to the HBL report, Harley-Davidson is exploring talks with other automobile companies in India for an outsourcing arrangement through its facility in Bawal, Haryana, which is a leased assembly unit.
Times of India reported earlier this month that the company was downsizing its operations in India by laying off employees and downsizing manufacturing at the Bawal plant.
TOI quoted sources as saying that the company’s India MD Sajeev Rajasekharan was being moved to Singapore to head India and a few other Asian markets additionally.
HBL reports that the company might only provide after sales support for vehicles that have already been sold and then sell imported bikes in the country. The report also states that Harley-Davidson India sold less than 2,500 units in the last fiscal and only around 100 bikes in the April-June period of 2020.
The company told HBL in a statement that it is evaluating plans to exit international markets, where volumes and profitability do not support continued investment in line with the future strategy.
The iconic bike maker has been struggling over the past few years and in the first quarter of 2020, it saw sales plunge 27% year-on-year, which is reportedly the steepest fall it saw in nearly six years.
It also unveiled a restructuring strategy focus on core markets and on its profitable motorcycles.
The company’s CEO Jochen Zeitz said that as part of the restructuring strategy, production will be cut and global inventory reduced. The bike maker also plans to reduce its product portfolio by 30% and only invest in 50 markets with growth potential in North America, Europe and parts of Asia Pacific.
This new strategy is expected to result in annual savings of about $100 million, but will lead to 700 of Harley-Davidson’s employees losing their jobs.
In India, Harley-Davidson recently announced a major price cut on the Street 750. The bike, which was earlier Rs 5.3 lakh (ex-showroom) was cut down to Rs 4.69 lakh.