Harley-Davidson’s fans in India are in for disappointment as the company announced closure of its manufacturing facility in the country due to its inability to continue operations in uncertain market conditions. The company decided to exit India after its unsuccessful attempts in tapping the world’s biggest motorcycle market. ALSO READ | Volkswagen Compact And 7-Seater SUV: T-Roc And Tiguan Allspace Review
What’s the reason behind the change in strategy?
The official decision comes two months after the company changed its strategy to focus on profitable motorcycles and core markets such as the United States. As part of the revised strategy, the company will shut the manufacturing facility in Bawal (Haryana) besides significantly shrinking the number of its sales office in Gurgaon, the bike manufacturer said.
The business model will be tweaked in India besides the company evaluating options to serve its customers. The Milwaukee-based company termed its new strategy as ‘The Rewire’ to describe restructuring actions related to employees and other services.
“These actions are aligned with The Rewire which is planned to continue through the end of 2020, leading to The Hardwire, a new strategic plan for 2021-2025 aimed at building desirability for the Harley-Davidson brand and products.
In a separate SEC filing, the American firm said that between 6 August, 2020, and 23 September, 2020, the company will implement additional restructuring actions under ‘The Rewire’ related to optimising its global dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India.
What will the company continue offering in India?
The company is in touch with its customers in India and will keep them updated on future support, it added. The company’s dealer network will continue to serve customers through the contract term. In the process around 70 employees will become jobless.
Harley-Davidson’s portfolio included bikes such Street 750, Iron 883 among others.
Most of times when brands exit markets, inventories are sold at discounts. In fact the same is with Harley-Davidson India.
Its bikes such as the Low Rider S were being sold at Rs 14.69 lakh after a discount of Rs 1.5 lakh. The Iron 883 was priced lower at Rs 9.38 lakh after a discount of Rs 90,000. These bikes were also compliant with the latest emission norms of Bharat Stage VI.
It seems the company won’t be able to fulfil dreams of its fans fully as opposed to the company’s official tagline in Twitter that says, “We fulfill dreams of personal freedom”.
In Twitter also, fans expressed their unhappiness over this move.
Check the tweets here: