Harley-Davidson halted its manufacturing in India and also its sales operations. The company expects to report $75 million in additional restructuring costs for 2020, which includes stalling its India operations.
As per the company's statement, "Between August 6, 2020 and September 23, 2020, the Company approved commitments to additional restructuring actions under The Rewire related to optimizing its global dealer network, exiting certain international markets, and discontinuing its sales and manufacturing operations in India."
Earlier, Harley-Davidson had announced shifting its focus towards profitable motorcycles and certain core markets like the United States.
The company also said that it planned to reduce its product portfolio and exit lower volume markets, which now happens to be India.
Harley-Davidson offered an elaborate range of motorcycles in India, right from the Street 750 to the CVO which costs upwards of Rs.50 lakhs. The brand has a huge fan following and also several chapters of HOG (Harley Owner's Group), across the country.
This announcement came after Harley-Davidson reported an unexpected quarterly loss due to the lockdown owing to the coronavirus pandemic.
A loss of 60 cents per share for the quarter through June was reported, compared with a profit of $1.23 per share a year ago. The revenue on motorcycles and related products nose-dived 53% year-on-year to $669 million, in the lockdown period.
Even in the United States, which is their biggest market, the plunge is 27% year-on-year, the highest in six years.