Harley Davidson May Only Offer Top End Models In India
Harley-Davidson might soon bring its operations in India to a complete halt. The development as suggested by recent reports would mean only select topline models of the company will be available for sale in the country going forward. The strategy will form a part of the companys The Rewire plan for its global markets.
As a part of its new strategy to consolidate its global operations, premium motorcycle manufacturer Harley-Davidson might soon bring its operations in India to a complete halt. The development, as suggested by recent reports, would mean only select topline models of the company will be available for sale in the country going forward.
In addition, the company might stop manufacturing its motorcycles in India, focusing only on the marketing and service of a few models going forward. The strategy will form a part of the company¡¯s ¡®The Rewire¡¯ plan for its global markets.
A recent ET report citing industry sources sheds light on the probable strategy. As per the report, the shrinking sales of the premium bike segment in the country is to be blamed for the need for consolidation of the Harley Davidson¡¯s India business.
¡°Not more than 10,000 superbikes are sold in the world¡¯s largest two-wheeler market which consumes more than 20-million units-a-year,¡± highlights the report.
The impending restructure
Harley Davidson (Representative Image: Reuters)
The ET report also mentions that the Harley Davidson Managing Director, Asia Emerging Markets and India, Sajeev Rajasekharan is being transferred to Singapore as a part of the global restructuring.
Simultaneously, the operations of the US bike maker in India will be trimmed. Sales, for instance, will be cut short on manpower while marketing and services will only be focused on, limited to a few top-end models.
The overall agenda, as mentioned under ¡®The Rewire¡¯ actions, will be carried out in a 5-year strategic span in order to streamline operations to reduce complexity and increase speed. In addition, Harley Davidson will be looking to reset its global business strategy and only focus on high-potential markets.
The reset will be seen with the company¡¯s offerings as well. Going forward, the company will trim down its product lineup for simplicity and maximum impact. It is also aiming to grow its Parts & Accessories and General Merchandise business through the same strategy.
India exit
Harley Davidson (Representative Image: Reuters)
While the report indicates that the company will restructure its operations in the country, it is unlikely that it will quit the market completely. As mentioned, topline variants will still be available in the country for sale, mostly catering to the limited buyers of premium motorcycles.
The company had launched its first ever electric motorcycle LiveWire in the country last year to mark an early entry into the country's budding EV market. With such models,. Harley Davidson will retain its existence in the Indian market as a trusted name for high-end motorcycle buyers.
