After a decade in the Indian market, American motorcycle manufacturer Harley-Davidson seems to be planning to depart from the Indian soil. The automaker is reportedly changing its India strategy with topline-only models and is planning to stop manufacturing from the country. The company is currently consolidating its operations as part of its global strategy to focus on its key global markets.
Reports citing sources close to the matter have revealed that the decision to consolidate operations in India comes in light of the premium bike segment that has shrunk after failing to fully expand to its potential.
Out of the 20 million units of two-wheelers that are sold in India in a year, Harley-Davidson has achieved not more than 10,000 motorcycles.
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Sources at ET Auto suggests that Managing Director, Asia Emerging Markets and India, Sajeev Rajasekharan was being transferred to Singapore as a part of the global restructuring. A few crucial aspects including sales is being pruned and looking to be operational with minimum manpower.
Its Indian branch is based in Gurgaon, Haryana, where it commenced operations in August 2009 and appointed its first dealership in July 2010.
Harley-Davidson's global portal suggests that the latest set of actions are a part of an initiative called ‘The Rewire’, that will be further developed over the coming months, leading to a new strategic plan.
These actions come from a comprehensive Rewire playbook that is designed to address top-priority opportunities, drive consistent execution and reset the company’s operating model in order to minimise complexity, sharpen focus and speed up decision making. The Rewire actions will include a 5-year strategic plan that consists of
-- Streamline operations to reduce complexity and increase speed.
-- Growth through Parts & Accessories and General Merchandise
-- Reset Global Business and Focus on High-Potential Markets
-- Reset product launches and product line up for simplicity and maximum impact.
The company is working on these key elements of The Rewire playbook and plans to share more about The Rewire in its Q2 update.
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