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New Delhi, NFAPost: Harley-Davidson, Inc. (“Harley-Davidson”) announced that as part of The Rewire, an overhaul of its operating model and market structure, the company is changing its business model in India and evaluating options to continue to serve its customers.  

Harley-Davidson plans to close its manufacturing facility in Bawal and significantly reduce the size of its sales office in Gurgaon. The company is communicating with its customers in India and will keep them updated on future support. The Harley-Davidson dealer network will continue to serve customers through the contract term.

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.

Restructuring plan

Iconic American motorcycle maker Harley-Davidson Motor Co decision to exit India comes after 11 years of operations. The India exit of the company comes as part of a global restructuring plan. In India, the world’s largest and most price-sensitive two-wheeler market, it struggled with sharply declining production and sales.

Indian production volume fell from 11,753 units in FY16 to 4,533 units in FY20 and sales declined from 4,708 units to 2,470 units during the same period. The company’s bad performance in India could be blamed on high prices and the wrong product and marketing strategy, said people close to the company.

“The India action will include an associated workforce reduction of approximately 70 employees,” the company said in a regulatory document filed in the US. In a statement issued locally, the company said it is shutting down its manufacturing plant in Bawal, Haryana, and is significantly reducing the size of its sales office in Gurgaon. The Harley-Davidson dealer network will continue to serve customers through the contract term.

The bike maker, which sold 13 models in India with a starting price of ₹4.69 lakh, currently has 33 dealerships in the country. The company said it has more than 25,000 bike owners in India.

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