Why is Harley Davidson, Trump's company, leaving India?
Harley-Davidson, one of the world's leading luxury motorcycle manufacturers, is winding down its business in India. As the business is not so good, this time the company is world famous for making heavy motorcycles from India.
Many of the world's largest companies are in business because of the coronavirus. The sale-discount has come down. Harley-Davidson, a luxury motorcycle manufacturer in Corolla Coral, is winding down its business in India.
For various reasons, the sales of Harley motorcycles were gradually decreasing in India. The situation is further complicated by the Kovid-19 epidemic. Last financial year, Harley-Davidson managed to sell less than two and a half thousand units of motorcycles in India.
The US company sold 100 bikes in the three months from April to June this year. For this reason, the US company recently reduced the price of multiple models. The company announced the launch of 250cc bikes in mid-July 2017 to popularize the middle-class luxury motorcycle. In the meantime, Harley has reduced the price of its two models from Rs 75,000 to Rs 6,000. But still sales have not increased.
A Harley-Davidson official says India has the lowest bike sales in the world.
According to The Hindu, Harley Davidson is leaving India in a decade due to low sales and lack of demand in the future.
A few days ago, Harley Davidson brought a 336cc motorcycle to compete with Indian motorcycle manufacturer Royal Enfield. The US company has brought this motorcycle to compete with the bullet brand motorbikes of Enfield. But sales did not go well.
In the United States, meanwhile, Harley-Davidson has already hit the domestic market due to a lack of affordability among young buyers to buy expensive motorcycles.
Harley-Davidson is famous for making motorcycles in 2011 by setting up a factory in Bawale, Haryana, India. India, one of the largest economic powers in Asia, is the second largest motorcycle market in the world. Harley started his business in the country as the demand for luxury motorcycles increased day by day along with the economic development.
India is basically one of the largest market for low cost and relatively affordable motorcycles. However, with the large middle class population as well as the growing number of upper class people, the country has created a massive market for expensive and luxurious motorcycles. About 12 models of Harley-Davidson imported motorcycles are sold in major Indian cities at a price of Rs 5 lakh to 36 lakh. Ahead of former US President Barack Obama's visit to India, Harley Davidson announced the manufacture of 2011 motorcycles in India.
After the United States, Harley-Davidson built such factories only in Brazil. India will be the third country where Harley-Davidson is setting up a factory to make motorcycles. India is the second largest motorcycle market in the world after China.
Rapid economic growth has led to an increase in the number of wealthy people in the country, creating a market for luxury and fashionable motorcycles. Harley Davidson's goal was to capture the market. But Donald Trump's country company is doing business in the first decade of business.
Harley-Davidson is the second U.S. carmaker to leave India under Donald Trump. Earlier in 2016, General Motors closed its factory in Gujarat.