Skip to main content

Harley-Davidson Is Joining Automobile Companies Leaving India

Publish date:
Video Duration:

Harley-Davidson  (HOG) - Get Harley-Davidson, Inc. Report is pulling its plug from India. The U.S. motorcycle maker said that the company is changing its business model in India as part of its "Rewire" strategy.

"These actions are aligned with The Rewire which is planned to continue through the end of 2020, leading to The Hardwire, a new strategic plan for 2021-2025 aimed at building desirability for the Harley-Davidson brand and products," the company said, in a statement, on Thursday.

The company ventured in the world's biggest bike market in India in 2009 but failed to  make an impact as it has been able to sell only 27,000 bikes till now. As per the Society of Indian Automobile Manufacturers, more than 17 million motorbikes and scooters were sold in India last year.

Critics argue that India’s high import tax on foreign automakers is making it hard for them to survive. 

It's worth noting that many foreign automakers have left or scaled back their productions in last five year. 

Last year, Ford Motor  (F) - Get Ford Motor Company Report announced that it’s scaling back its operations in India. In the same year, U.S. motorcycle manufacturer UM Motorcycles stopped its production in India after a dispute with its local partner.

In 2017, General Motors  (GM) - Get General Motors Company Report left India after being in the business for 21 years.

Watch the video above to know more.

Latest Videos From TheStreet and Jim Cramer:

Related Videos