Harley Davidson Might Exit Indian Market Due To Poor Sales: Report
According to the report from Hindu, the two-wheeler manufacturer is considering this option because of poor sales as well as no visibility for future demand.
Harley-Davidson, an American motorcycle brand is reportedly planning to wind up its assembly operations in the country. According to the report from Hindu, the two-wheeler manufacturer is considering this option because of poor sales as well as no visibility for future demand. It also reported that the brand has approached a few automakers soliciting a possible outsourcing deal using its leased assembly facility at Bawal in Haryana. CJI Bobde Spotted Checking Out Harley Davidson And His Love For Bikes is Evident! (View Pic)
This decision taken by the two-wheeler manufacturer is reportedly in accordance with its rewire strategy, wherein the brand will focus only on 50 key markets where the brand is performing well.
As far as the Indian market is concerned, Harley Davidson retailed only 2500 units during the last financial year. If we consider these sales numbers, the brand hasn't performed too well. So, the company has come to a strategic conclusion to evaluate plans to exit international markets, where volumes and profitability do not support continued investment in the future.
The report also mentioned that the brand has declined to make any statements at this point in time. During the FY19, the company recorded a decline of 22 percent by retailing 2676 units in comparison to 3413 units sold in FY18. It is important to note that around 65 percent of Harley-Davidson's volumes come from smaller capacity bikes in the country that are assembled at its facility in Haryana.
Apart from the Indian market, Harley Davidson also has failed to increase volumes in the home market. The US market accounts for more than half of its motorcycles retailed. With sales falling for the last 12 quarters, the company is forced to limit its production to prevent pressure for price discount and also protecting its profit.
(The above story first appeared on LatestLY on Aug 20, 2020 07:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).