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| Harley Davidson India Wind up Production and Sale |
The U S, Favourite life style bike manufactures , Harley Davidson declared formal closure of Production and Sale of bikes in Indian market .The declaration came suddenly similar to its entry Indian Market, in the year 2009.Last day Harley announced that it discontinued sales as well as manufacturing of the product in india,However it is also stated that the dealer network will continue to offer service to the customers and offered full support for the Indian customers.Harley termed this movement as part of rewire process which may ends up to the end of this year.50 % import tariff charged on India is also an important factor for the withdrawal from one of the largest two wheeler market.
The HD started its functioning in India in the year 2009 and delivered first motor cycle in 2010.In the year 2014 it started manufacturing of Street 750 and 500 Motor Cycles in India .It was the first unit of production out side United States.The HD product range varied from Street 750 for a price of for 4.70 Lakhs to Fat boy 18.50 Lakhs. The Annual sales volume in India is 5 % of its total sale volume.
The Indian Expectation for HD was not so fruitful as in USA.According to Harley team it is not just a bike its a life style.The owners of the bike range from the Pope in Rome to Arnold Schwaznsnegger of holly wood or white men with beards.
The HD Indian team was aware of these misconceptions.Unlike in U S ,where exists a passion to own a Harley to make it as a part of life style ,Indian condition depends upon the price terms.India is the second largest market for two wheeler in the world followed by China,But costly bikes likes Harley is still a luxury for majority of bike users in India.
The Harley has around 35 dealers at different part of the country.Each dealership costs around 3 to 4 Crore investment to start the point luxuriously according to Harley standards. According to the statement of Federation of Automobile Dealers ,the present closure of these dealer points will render more than 2000 working personnel jobless.Amid Covid 19 Harley is facing a sales decline around 60 %.
The dealers still not received any communication from the HD side regarding the closure.According to dealers version HD still have minimum consistent demand in India.The Competitors in the luxury segment bikes are far behind the Harley both in performance and class.
In Kerala ,there were two dealership at Kochi and Kozhikode and the company is receiving between 20 to 25 orders per month,Still the booking inquiries are coming.In fact the third dealership was on the anvil.
The present closure as a part of rewire progrme and shifting of The manufacturing units to Thailand will make the bikes little more costly due to the import of the product to India. If the Manufacturing continue in India after the period of ten years,the tax liability the price will be elevated much higher than the imported rate.
Even though the HD didn't made any life - style impact in India like in USA,the product got consistent demand from various parts of the Country.More demands are recorded in Bangalore, where the company got 3 dealer points.
The prime factor leading the Indian market is Cost.But the factors which lead the buyers to the HD are Comfort and Class.The fortunes of HD was in the luxury segment bikes are still alive when compared to the competitors like BMW,Triumph etc.The difference is that the latter are sports model bikes.
The terrific riding experience of Harley Davidson bike will always arise temptation for cross country ride or more,that is almost certain.
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