Harley-Davidson left the Indian market

 

US motorcycle brand Harley-Davidson is leaving India, the world's largest motorcycle market. The company has decided to stop all production and sales activities in the country.

Earlier, the Japanese carmaker Toyota had decided to leave India. Unable to withstand high taxes in India, the company decided to wrap up its business. This time the same fate befell Harley-Davidson.

About 18 million motorcycles and scooters are sold in India every year. But the company could not keep up with the Japanese Honda, and the Indian brand Hero in the local market.

Although cheaper than the economies of many other developing countries, India is still a difficult market for foreign carmakers, according to a BBC report.

This is not the first time that a foreign carmaker has moved out of the Indian market. General Motors left India in 2016. Last year, another foreign carmaker, Ford, teamed up with Indian carmaker Mahindra & Mahindra to survive in the country's market.

Earlier, US President Donald Trump had complained about India's high taxes. He also said that the price of Harley-Davidson bikes has gone up due to taxes.

After that allegation, the import tax in India was reduced by 50 percent. But even then, foreign brands have not been able to survive in the country's competitive market.

Harley-Davidson, however, is still going through a difficult time. More than a decade later, the company reported losses in the April-June quarter of this year.

The motorcycle brand in the US is laying off thousands of workers to cover costs. In such a situation, the new CEO of the company, Jokhen Jets, has decided to focus on its core market and model.