Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Harley-Davidson to exit world's biggest bike market

Harley-Davidson to exit world's biggest bike market

Harley-Davidson is pulling out of India, the world's biggest motorcycle market.

The iconic US motorcycle brand is stopping manufacturing and massively scaling back its sales operations.

Harley's decision comes weeks after Toyota said it wouldn't expand further in India due to the country's high tax regime.

The exit is a blow for Indian Prime Minister Narendra Modi's efforts to lure or retain foreign manufacturers.

Harley's departure involves $75m (£59m) in restructuring costs, around 70 redundancies and the closure of its Bawal plant in northern India.

The plant was opened in 2011 but Harley-Davidson has struggled to compete with local brand Hero as well as Japan's Honda.

About 17 million motorcycles and scooters are sold each year in India.

More setbacks


While it is cheaper than many other developing economies, India has proven a tough market to crack for foreign automakers.

General Motors pulled out of the country in 2017 while Ford agreed last year to move most of its assets into a joint venture with Indian vehicle giant Mahindra & Mahindra.

US President Donald Trump has previously complained about India's high taxes, specifically mentioning the levies placed on Harley-Davidson bikes.

India's import tariffs were slashed by 50% but the brand has still struggled in the competitive market.

Harley has also been suffering its own problems and recorded its first quarterly loss in more than a decade between April and June this year.

It has been cutting hundreds of jobs under its new chief executive Jochen Zeitz and focusing on core markets and models.

Harley couldn't play the game


By Nikhil Inamdar, BBC News' India business correspondent

Harley Davidson came into India with much fanfare a decade ago. But it has since, struggled to find a foothold in one of the world's most lucrative two-wheeler markets.

With sales averaging under 3,000 units every year, the iconic American brand simply couldn't capitalize on the big Asia opportunity it was betting on.

Auto experts put the blame on the brand's failure to drive up volumes and derive cost efficiencies by leveraging local tie-ups.

This, coupled with prohibitively high taxes, a slowdown in discretionary spending and an inability to compete with Indian brands may have prompted the decision to call it quits.

"India is a high volume, low margin market. They weren't structured to play that game, being at the very pointy end of the pyramid," Hormazd Sorabjee, Editor of Autocar India told the BBC.

"The lifestyle element that goes with owning a Harley bike is also not fully developed in India yet."

Incidentally the bike maker has had a better run in other Asian markets like Thailand and Korea, precisely because the market and cost structures are more favourable.

Harley's exit may not have a significant economic impact, but is bad optics for the Modi government, which is preparing to roll out a $23bn package to lure global manufacturers to set up base in India as part of the country's 'Make In India' policy.

High import tariffs on Harley have also been a flashpoint in India's trade negotiations with the US.

Mr Trump has previously cited the example of Harley to call India a "tariff king", and its decision to exit the Indian market could well set off another diplomatic tussle with the US with whom India is negotiating a free trade agreement.


Dennis Hopper and Peter Fonda ride Harley-Davidsons in a scene from the film Easy Rider.


Harley History


The iconic US motorcycle brand was founded in 1903 and has built a very loyal customer base. It has owners' clubs all over the world.

It hit the global stage in 1969 thanks to the classic road movie Easy Rider starring Dennis Hopper, Peter Fonda and Jack Nicholson.

Its bikes, nicknamed "hogs", are also made in factories in the US, Brazil and Thailand.

Harley has been looking to grow the brand beyond baby boomers in the US, with smaller models and all-electric versions.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×