The encyclopedia · Strategy & Leadership · Strategic decision · 2010–2020
Harley-Davidson quit standalone sales in India after a decade of tiny volumes
In 2020, Harley-Davidson stopped selling motorcycles directly in India and licensed the brand to Hero MotoCorp after years of weak sales.
Harley-Davidson · 2020-09
What happened
Harley-Davidson entered India in 2010 with high expectations for the world's largest two-wheeler market. It sold premium cruisers and touring bikes to affluent buyers, but its motorcycles were expensive, largely imported, and ill-suited to Indian traffic and price points.
Sales remained small. At its peak, Harley sold only a few thousand units a year in a market where Hero MotoCorp and Honda sold millions of commuter motorcycles. High import duties pushed prices even higher, and the company never developed a locally manufactured, mass-appeal product.
In September 2020, Harley-Davidson announced it would discontinue standalone sales and manufacturing in India as part of a global restructuring. It later signed a deal with Hero MotoCorp to sell and service Harley motorcycles in India, effectively conceding that it needed a local partner to have any presence.
The retreat ended Harley's dream of building a major Indian business on its own. The case is now used to discuss premium-brand limits in price-sensitive emerging markets.
Why it happened
- Harley's premium, heavy motorcycles were too expensive for all but a tiny sliver of Indian buyers.
- High import duties on fully built bikes made the products even less competitive against locally made rivals.
- The company never developed a small-displacement, India-specific motorcycle at a mass-market price.
- Indian road conditions and traffic favoured small, fuel-efficient bikes, not large cruisers.
The lesson
A premium brand is not a substitute for a product that fits local roads and wallets. In a price-sensitive mass market, being desirable to a few thousand people is not a business.
Aftermath
Harley-Davidson licensed distribution and service to Hero MotoCorp and co-developed the smaller X 440 model for India. The case is widely cited in emerging-market strategy for premium automotive brands.
Sources
- Harley-Davidson & Hero Motocorp Announce Agreements For India Market — Harley-Davidson Investor Relations
- Harley-Davidson Will Develop A New Motorcycle In Partnership With Hero MotoCorp — Top Speed
- The Hindu — Harley-Davidson books $75 million in restructuring costs, exits India
- Asia Times — Harley-Davidson to exit Indian market
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