This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-54290245
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Harley-Davidson to exit world's biggest bike market | Harley-Davidson to exit world's biggest bike market |
| (32 minutes later) | |
| Harley-Davidson is pulling out of India, the world's biggest motorcycle 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. | 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. | 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. | 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. | 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. | 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. | About 17 million motorcycles and scooters are sold each year in India. |
| More setbacks | More setbacks |
| While it is cheaper than many other developing economies, India has proven a tough market to crack for foreign automakers. | 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. | 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. | 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. | 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. | 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. | 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 | Harley couldn't play the game |
| By Nikhil Inamdar, BBC News' India business correspondent | 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. | 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. | 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. | "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." | "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. | 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. | 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. |
| Harley History | 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. | 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. | 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. | 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. | Harley has been looking to grow the brand beyond baby boomers in the US, with smaller models and all-electric versions. |