Harley Davidson exiting India, plans to discontinue sales and manufacturing operations


New Delhi – American motorcycles manufacturer Harley-Davidson Inc. is exiting from India, and it will discontinue sales and manufacturing operations as part of its broader additional cutbacks announced to employees on Thursday.

Harley’s decision to quit has come weeks after Japanese Motor Corporation Toyota said it won’t expand further in India due to the country’s high tax regime.

According to a BBC report, Harley’s departure involves $75m in restructuring costs, around 70 layoffs and the closure of its Bawal plant in northern India.

Back in 2017, General Motors Co. (GMC) pulled out of the country while Ford Motor Co. agreed last year to move most of its assets into a joint venture with Mahindra & Mahindra Ltd. after struggling for more than two decades to get traction in the market.

U.S. President Donald Trump has often complained about the India’s high tariffs, at times specifically mentioning the levies places on Harley bikes.

However, Modi’s government has been trying to offer $23 billion of incentives to attract firms to set up the manufacturing units, including production-linked breaks for automobile companies. The primary aim of this program is to draw businesses away from China.

The motorcycle firm recorded its first quarterly loss in more than a decade for the three months ended in June. Moreover, hundreds of layoffs took place under the current CEO Jochen Zeitz, who took office in May.

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