Harley-Davidson spent 11 years trying to crack India — then took a $75M charge to leave

Harley-Davidson entered India in August 2009, drawn by the country's growing affluent class and a reputation for iconic American motorcycles. It appointed 29 dealers, built an assembly plant in Bawal, Haryana — its only manufacturing facility outside the United States — and invested heavily in marketing and distribution. The Street 500 and 750 models were produced at Bawal for both domestic sale and export.

The Indian market never delivered. Import duties of 60% plus additional taxes effectively doubled prices, making even the smallest Harley unaffordable for most buyers. Regulatory uncertainty around emission standards for motorcycles over 500cc blocked imports for periods. Local competitors Hero and Honda offered comparable cruising experiences at a fraction of the price. By 2020, Harley had failed to achieve the volumes needed to sustain its India operations.

On September 24, 2020, Harley-Davidson announced it would cease manufacturing and sales in India, taking a $75 million restructuring charge. Seventy employees were laid off, the Bawal plant was closed, and 29 dealerships across the country were affected. In 2021, Harley partnered with Hero MotoCorp to distribute and service its bikes in India through a licensing arrangement — a fraction of the original direct operation.