BUSINESS OF BIKES: AMERICAN AUTO'S INDIA ROADBLOCK

Harley-Davidson’s exit from India is the latest in a series of unsuccessful forays by American cult automobile companies in the country. India is seen by the United States as a tough market to crack, and multiple trade irritants mar the relationship between the two countries. However, under the new Joe Biden presidency there is renewed hope that these trade issues would be taken up. But concerns also exist that the U.S. might not fully dismantle the trade nationalism and protectionism that characterised the Donald Trump administration.

- PRERNA LIDHOO

ICONIC MARVEL SUPERHERO Captain America sports a never-say-die attitude, a deep sense of duty and—to no one’s surprise—a 1942 Harley-Davidson. It’s tough to imagine the quintessential American war hero with anything other than the cult superbike—the brand, after all, has been synonymous with the ideas of strength, freedom, and machismo.

Now, if only its cult status was enough to keep its engines running in India.

The Milwaukee-based company has decided to exit India, the world’s largest two-wheeler market, after having sold only around 2,676 motorcycles in the country in FY19, and just 100 in April-June 2020. In fact, its models in India—ranging from ₹5.3 lakh to ₹50.3 lakh— have sold a little over 27,000 units in a decade while its closest competitor Royal Enfield does a similar number in a month.

Of course, Harley-Davidson’s struggles are not Indiaspecific—globally, it has been struggling to grow its audience beyond baby boomers. As a result, the company, as a part of its “The Rewire” strategy is narrowing its focus to the 50 most profitable markets—including Europe, China, and the U.S.—and pruning its global portfolio by nearly 30%, leading to the India exit.

This move has been long coming, given the import tariff structure which has been a bone of contention between India and the U.S.