Harley-Davidson India Plant Could Be Closed, Operations Scaled Down

Harley-Davidson Street Rod Review Test Report — India plant of Harley-Davidson could be shut by next month

Harley-Davidson India plant could be shut as early as next month as the American bike manufacturer is reducing its operations the world over as part of its new global strategy.

We had reported only recently about the firm’s strategy – to be called “Hardwire” – which will see it concentrate only on its core models and customers, while slashing down models by 30 percent.

As part of the plan, Harley-Davidson India plant could be shut down as early as next month and the Managing Director of India, Sanjeev Rajasekharan is being transferred to Singapore. Many executives were already laid off in June and July.

Having downed shutters at its India plant, Harley-Davidson would then go on to work on critical operations like sales, marketing and service with the minimum manpower as possible.

Dealer development functioning on the other hand would be completely run by a junior executive and all of the above is part of the global restructuring plan that has been put in place by the bike maker’s top staff.

Why is Harley-Davidson India plant being shut you ask? Well, the firm has not had good sales here. Not only in India, the company has failed to increase sales in the United States for several years now.

USA is Harley’s top market and accounts for more than half its motorcycles sold. But even that could not help the brand negate the $92 million (Rs. 690 crores) net loss in the second quarter this year.

For sure COVID-19 was a major factor, but sales slump in its core market means cost-cutting will happen and inevitably the brand has decided to de-emphasise some of its unprofitable international regions, into which India falls. It will continue to focus on China, Europe and of course the United States of America.