Harley-Davidson Discontinues Sales, Manufacturing Operations in India
India is known to be the world’s biggest market of motorcycles. However, one of the world’s best — Harley-Davidson — couldn’t survive for long in the country as the United States’ iconic motorcycle brand decided to stop the sales as well as manufacturing in India.
The reason is the country’s high tax rate. Earlier, Japanese car manufacturer Toyota decided not to expand its operations further in India due to the same reason.
Harley-Davidson’s exit will be a big blow for the Indian economy as the restructuring costs of the motorcycle brand in Bawal, Haryana, will be as high as $75m (approximately 553 crore Indian rupees).
The US-based company had started its Bawal plant in 2011 but failed to compete with India’s Hero and Honda of Japan, both of which were in a partnership until 2010.
In India, about 17 million two wheelers are sold every year. The country provides a cheaper cost of manufacturing to the foreign automakers but they struggle a lot for sales.
In 2017, General Motors closed its operations in India, while Ford had to partner with India’s Mahindra & Mahindra last year for the survival in the country.
US President Donald Trump had also criticised the high tax regime of India, mentioning the financial pressure on the Harley-Davidson, Inc.
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