News By/Courtesy: Lia Jils | 29 Sep 2020 11:33am IST

HIGHLIGHTS

  • Harley Davidson quits in India eventhough the U.S government persuaded Indian government to cuts taxes.
  • Retail sales in the home market is also low
  • Royal Enfield is the biggest competitor.

Harley-Davidson finally quits in India, they were trying to sell around 10,000 units but they can't even sell a quarter of it even though the U.S. government persuaded the Indian government to cut taxes. There are nine reasons why Harley-Davidson had to shut down the two markets in the world.
 
1. No full-scale manufacturing
Harley Davidson had set up plants in Bawal, Haryana in India to manufacture bikes as affordable as possible to the Indian consumers. They have a tax burden around 56 percent as they are not manufactured but merely assembled from parts imported into India
2. Financial troubles and Covid-19
Harley-Davidson shipped around 213,939 last year which was the lowest in nine years. Retail sales in the home market also reduced due to production cutbacks, Covid-19 impact and the company now focuses on US and European markets.
3. No clear Demand Outlook
The pandemic has pushed down the Indian market sales. According to the Society of Automobile Manufacturers, the two-wheeler sales were 8.03 million units last year compared to 4.13 million this year during the period between April to August.
4. The dying cruiser segment
The cruiser segment is not only dying in India but overseas too. Except for Indian motorcycles and recently BMW, there is no other brand competes with Harley in the Indian market. Brands like Suzuki, Ducati, Yamaha have stayed away from cruisers in India.
5.Late to fight with Royal Enfield.
Royal Enfield launched two bikes with the biggest engines yet. This non-cruise bike has a price of 2.5 lakh. They have created an affordable but strong brand alternative to Harley Davidson. Royal Enfield went to further launch a Cafe Racer creating a segment in which Harley does not have a product.
6. Smaller scale of Reach.
 Harley-Davidson caters to the entire length and breadth of India but there is a pressing need for Harley-Davidson to expand. Their average sales were less than 70 units making one of the lowest in the two-wheeler space. Mercedes sold 150 units in the same period.
7. Poor service back-up
Social media sites are filled with angry reactions from the customers dissatisfied with the service back-up offered by the bike maker. Moreover, owners have faced prolonged waits for some parts of the bikes to get imported.
8.No local partner
Bajaj has partnered with Britain's Triumph Motorcycle, BMW with TVS Motor Company but Harley joined with Qianjiang a Chinese subsidiary of Geely Motors.
9. Fierce Competition.
Harley-Davidson has tough competitors like Triumph, Royal Enfield, Jawa, and Norton.
 
This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

Section Editor: Pushpit Singh | 02 Oct 2020 10:51am IST


Tags : #auto

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