Harley-Davidson has ceased manufacturing operations in India, succumbing to low-cost rivals, high taxes and declining discretionary spending.
With an average sale of 3,000 units a year, Harley-Davidson failed to gain a foothold in the Indian market of 21 million motorcycles and scooters.
- Why Harley-Davidson Is Struggling in India (May 28, 2019, CNBC)
This post is based on the BBC article, Harley-Davidson to exit world’s biggest bike market, by Nikhil Inamdar, September 25, 2020, and the YouTube video in the Spotlight. Image source: ChameleonsEye/Shutterstock
1. What factors contributed to Harley-Davidson’s decision to enter the Indian market a decade ago?
Guidance: The entry factors include (1) India is considered the world’s most lucrative market with an annual demand of 17 million motorcycles and scooters; (2) Harley wants to grow the brand beyond its local U.S. customer base; and (3) a trade agreement.
2. What factors contributed to Harley-Davidson’s decision to exit the Indian market in 2020?
Guidance: The exit factors include (1) demand is too low to derive cost efficiency; (2) high taxes and import tariffs; (3) a slowdown of discretionary spending; and (4) an inability to compete with Indian brands.