The Milwaukee, US based motorcycle maker has sent out feelers to some other automakers through consultants for a possible outsourcing arrangement using its leased assembly facility at Bawal in Haryana, the Hindu reported citing unnamed sources.
Harley Davidson will be focussing on about 50 markets where it generates high sales volume or has growth potential, chairman Jochen Zeitz said during the company’s June-quarter earnings call. The company is evaluating an exit from markets which generated “modest” sales and profitability as part of its restructuring project dubbed Rewire.
The American company has retrenched about 500 positions globally as part of the project. Zeitz said that regional offices have been streamlined and now have more freedom to make decisions pertaining to the local business.
The company also plans to reduce the number of models by 30%, according to Zeitz. “This enables us to invest in the products and platforms that matter the most, while better balancing our investment in new high potential segments,” he said.
The company sold about 2,500 units in India during the fiscal year ending March 2020 while about 2,100 units were exported from the country. To put that in perspective, Harley Davidson sold about 210,000 motorcycles globally during the same period.
Domestic sales declined by 87% during the April-June period to just 106 units while export contracted by 40% to 229 units.
Meanwhile, the import of high engine-capacity motorcycles into India may get cheaper. The government had announced in February that motorcycles with engine capacity of more than 1600cc will attract single-digit import tariff, as against 50% for all motorcycles.
US President Donald Trump had termed the 50% duty on import of motorcycles into India unacceptable ahead of his official visit earlier this year.