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A Lonely Ride: Why Harley-Davidson Left India

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A Lonely Ride: Why Harley-Davidson Left India

The cult-classic Harley-Davidson disappeared from Indian streets in 2020. Here’s why…

With a characteristic engine sound and signature body frame, Harley-Davidson has enjoyed a near cult-like following in the consumer’s motorsport world. However, the iconic manufacturer shut its doors in India in 2020 after it failed to monopolise the world’s largest bike market. The decision was a culmination of several factors, ultimately resulting in the company stopping manufacturing in India.

Harley-Davidson produced spectacular and enviable bikes, but only for those who could afford them. The company entered the Indian market with an American mindset, failing to factor in India’s median income and purchasing power. What was considered an affordable bike in their home was simply unattainable for the average Indian biker. Indian riders chose to flock to cheaper alternatives better suited for their roads, especially Japanese manufacturers – Yamaha and Honda.

The steep price was not only attributed to the company but also to India’s tax structure. India dropped tariffs on Harley-Davidson bikes from 75% to 50% in 2018 but still levied an additional 31% tax on two-wheelers. This meant that the consumer paid 81% of the bike’s price in just taxes. More tariff was imposed on higher models; sometimes, customers paid as high as 106%.

Harley-Davidson failed to collaborate effectively with local companies, choosing to remain exclusive and selective. The company struggled to integrate into the market, unlike other foreign companies that wisely joined hands with trusted Indian names.

The numbers confirmed the worst. Out of a whopping 13.6 million motorcycles sold in 2019, Harley-Davidson accounted for a dismal 2,676. Indians wanted faster, smoother, lighter bikes, and Harley-Davidson was not their brand. The demand was too low, the cost too high.

Ultimately, Harley-Davidson failed in the Indian market. It entered with an American philosophy and soon became a pricey showpiece meant to display status, drifting away from the practical needs of Indians.

In 2020, the company cut its losses and re-strategised its markets. Under the Rewire program, the company exited the Indian market, remaining only in a post-purchasing service capacity. Harley-Davidson shut down its manufacturing facility in Bawal and downsized its sales office in Gurgaon.

Soon after, Harley-Davidson disappeared from the Indian streets but still remains in the hearts of avid bikers, hoping for its triumphant return to the market.

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