- The company did not sell 2,500 units in India during the last financial year.
Bad news has come for the American fans of American cruiser bike company Harley Davidson. The company has announced the closure of its manufacturing unit in India. For the last one month, there was news about it in the market, on which the company has now stamped its seal. The company has taken this decision under a restructuring process called ‘The Rewire’. Explain that Harley Davidson’s assembly plant was in Bawal, Haryana.
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Due to Kovid, the sale of this bike in the Indian market was greatly reduced. After this, the company indicated this in view of the losses in August. The company plans to focus on the American market. There are also reports that this decision of the company is also threatening the jobs of about 70 employees. The company will also close assembly plants with India in North America, Europe and parts of the Asia Pacific where vehicle sales have gone down.
Talks with Hero MotoCorp
Harley Davidson can now enter into a partnership with Hero MotoCorp in the Indian market. According to two sources connected to the case, Hero will be the master distributor for Harley bikes in India. A strategy is being prepared for this partnership. A source said that a partnership with Hero is under discussion for at least one Harley motorcycle with a 300 to 600cc engine capacity, which will be launched later.
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Only 27,000 units sold in 10 years
Harley Davidson bikes have seen a sharp decline in demand due to the Kovid-19 epidemic. The company did not sell 2,500 units in India during the last financial year. This is the company’s worst performance in the international market. At the same time, in the last 10 years, the company has sold only 25,000 units in the Indian market. That is, the company sold an average of 2500 units every year in the last 10 years.
A source associated with the company said that the company is only shutting down its manufacturing unit. The marketing and sales of the bike will continue. The bike will now be imported from Thailand in India. In such a situation, the price of the bike can increase by 40 to 50 thousand rupees. Please tell that the company has more than 20 thousand employees across the country. To increase sales, the company is also offering a big discount of 70 thousand rupees on the bike.
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These companies have also closed the plant
It is not the case that an external company is closing its Indian plant for the first time due to sales. Rather, other automobile companies have also closed their plants in India before Harley Davidson. This includes General Motors, Fiat, Sangyong Motor, Scania AB, MAN and UM Motorcycles.
Harley Davidson’s Revue
Harley Davidson globally generated revenue of $ 2.16 billion (about 15.90 thousand crore) in the first quarter of this year, ie from January to June, of which $ 394 million (about 2.9 thousand crore rupees) came from the Financial Services. . At the same time, the revenue generated from motorcycle sales in the first quarter of 2020 was around 1.3 billion (about 9.56 thousand crores).
India is the World’s Largest Bike Market
India is also the world’s largest bike market. In 2017, he reached this position, leaving China behind. In 2016, a total of 17.7 million (about 1.77 crore) two-wheelers were sold in India. This means that more than 48,000 units were sold every day in the country. During this period, 16.8 million (about 1.68 crore) two-wheelers were sold in China.