Harley-Davidson India Exit: Firm Contacts Peers To Outsource Production
The American bike manufacturer is in the process of restructuring its global operations at the moment.
Harley-Davidson India exit is happening and now, it has come to light that the firm is looking to outsource its Indian manufacturing operations. It has even began making overtures to other automakers through consultants.
If this plan does get through, then it is likely that the American automaker’s Bawal facility would be used to produce motorcycles at least in the short term.
This development about Harley sending up trial balloons comes just weeks after it was reported that the bikemaker could shut its India plant by as early as next month.
After facing huge losses during the second quarter of the year, Harley-Davidson revealed that it would be reducing its operations, concentrate only on core models and markets, while cutting down its product range by 30 percent.
Chairman of the motorcycle manufacturer Jochen Zeitz had earlier stated that as part of its restructuring process, the company would exit from markets with modest sales and profitability. Thus, Harley-Davidson India Exit is all but set in stone.
The firm sold about 2500 units in India during FY19-20, a fraction of its total sales which was around 2.1 lakh bikes during the same period. Exports, on the other hand, were even less, with just about 2100 units being shipped from India to other nations.
However, despite exiting the nation, operations like sales, marketing and service are likely to continue, but with limited manpower, while Harley is said to be looking to appoint a junior executive to run dealer development in the country.
Source – Economictimes.Indiatimes.com