Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Harley-Davidson to exit world's biggest bike market

Harley-Davidson to exit world's biggest bike market

Harley-Davidson is pulling out of India, the world's biggest motorcycle market.

The iconic US motorcycle brand is stopping manufacturing and massively scaling back its sales operations.

Harley's decision comes weeks after Toyota said it wouldn't expand further in India due to the country's high tax regime.

The exit is a blow for Indian Prime Minister Narendra Modi's efforts to lure or retain foreign manufacturers.

Harley's departure involves $75m (£59m) in restructuring costs, around 70 redundancies and the closure of its Bawal plant in northern India.

The plant was opened in 2011 but Harley-Davidson has struggled to compete with local brand Hero as well as Japan's Honda.

About 17 million motorcycles and scooters are sold each year in India.

More setbacks


While it is cheaper than many other developing economies, India has proven a tough market to crack for foreign automakers.

General Motors pulled out of the country in 2017 while Ford agreed last year to move most of its assets into a joint venture with Indian vehicle giant Mahindra & Mahindra.

US President Donald Trump has previously complained about India's high taxes, specifically mentioning the levies placed on Harley-Davidson bikes.

India's import tariffs were slashed by 50% but the brand has still struggled in the competitive market.

Harley has also been suffering its own problems and recorded its first quarterly loss in more than a decade between April and June this year.

It has been cutting hundreds of jobs under its new chief executive Jochen Zeitz and focusing on core markets and models.

Harley couldn't play the game


By Nikhil Inamdar, BBC News' India business correspondent

Harley Davidson came into India with much fanfare a decade ago. But it has since, struggled to find a foothold in one of the world's most lucrative two-wheeler markets.

With sales averaging under 3,000 units every year, the iconic American brand simply couldn't capitalize on the big Asia opportunity it was betting on.

Auto experts put the blame on the brand's failure to drive up volumes and derive cost efficiencies by leveraging local tie-ups.

This, coupled with prohibitively high taxes, a slowdown in discretionary spending and an inability to compete with Indian brands may have prompted the decision to call it quits.

"India is a high volume, low margin market. They weren't structured to play that game, being at the very pointy end of the pyramid," Hormazd Sorabjee, Editor of Autocar India told the BBC.

"The lifestyle element that goes with owning a Harley bike is also not fully developed in India yet."

Incidentally the bike maker has had a better run in other Asian markets like Thailand and Korea, precisely because the market and cost structures are more favourable.

Harley's exit may not have a significant economic impact, but is bad optics for the Modi government, which is preparing to roll out a $23bn package to lure global manufacturers to set up base in India as part of the country's 'Make In India' policy.

High import tariffs on Harley have also been a flashpoint in India's trade negotiations with the US.

Mr Trump has previously cited the example of Harley to call India a "tariff king", and its decision to exit the Indian market could well set off another diplomatic tussle with the US with whom India is negotiating a free trade agreement.


Dennis Hopper and Peter Fonda ride Harley-Davidsons in a scene from the film Easy Rider.


Harley History


The iconic US motorcycle brand was founded in 1903 and has built a very loyal customer base. It has owners' clubs all over the world.

It hit the global stage in 1969 thanks to the classic road movie Easy Rider starring Dennis Hopper, Peter Fonda and Jack Nicholson.

Its bikes, nicknamed "hogs", are also made in factories in the US, Brazil and Thailand.

Harley has been looking to grow the brand beyond baby boomers in the US, with smaller models and all-electric versions.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×