Harley-Davidson Inc has decided to shut down its manufacturing and sales operations in India in the light of poor sales record as well as a dented demand outlook impacted by the COVID-19 pandemic.
The development comes as part of the US-based company’s restructuring exercise under the ‘Rewire’ programme that aims to have a more streamlined product portfolio and a leaner cost structure.
This was announced by one of the most valuable brands in the motorcycle segment on Thursday in a filing with the Securities and Exchange Commission on September 24.
Reports suggest that the company could clock only 25,000 sales in India till February 2020 after foraying into the immensely promising Indian market as many as ten years ago.
Its India sales in FY19 dropped by 22% to 2676 units as against 3413 units sold in the corresponding period the previous year.
As part of the decision, the company will shut down its assembly unit in Bawal, Haryana, resulting in job loss for 70 of its employees. Only a scaled-down sales office in Gurgaon, south of New Delhi, will be retained.