- American motorcycle company Harley-Davidson decided to shut down its manufacturing facility and reduce its office size in India.
- The company will catch the restructuring cost of $75 million (Rs 553 crore)
- The announcement comes after Harley revealed a strategy to shift focus back to more profitable and focus on core markets such as the United States.
American motorcycle company Harley-Davidson to shut down its business operation in India to reduce its operating cost. The company was unsuccessful in its efforts to gain attention in the Indian market and decided to discontinue its sales and manufacturing in the country.
The company on Thursday said it expects a restructuring cost of $75 million (Rs 553 crore).
The company will also close its manufacturing facility at Bawal in Gurgaon Haryana, focusing significantly to reduce its size in a sales office in Gurgaon and the decision to discontinue its operation through the end of this year.
The announcement comes after Harley revealed a strategy to shift focus back to become more profitable and on the core markets such as the United States, France, and Canada.
Furthermore, Harley-Davidson India Managing Director will move to the Singapore office to coordinate the company’s operation in South Asia and South America.
The move by Harley-Davidson in India will lead to the approx 70 employees’ job loss which was involved in its India operations
The company started its operation in India a decade ago with the hope to gain market share in the Indian motorcycle market, but due to the market positioning the company sales growth is declining year-by-year, resulting in loss of market share.
Earlier in July, Company revealed its ‘Rewire’ strategy, said that the company would streamline its planned product portfolio by about 30% and focus on 50 markets with growth potential in North America, Europe, and parts of Asia Pacific.
Moreover, the company said they will be shutting down the manufacturing facility at Bawal and reducing the office size in the country but will continue to update and serve the customers through various contact terms in near future.