The pandemic, which is already facing a d’earlier interest in markets around the world by young consumers, has only accelerated the desire for restructuring. .
The iconic American manufacturer of cruiser motorcycles has sold less than 30,000 sets in India in 10 years, that’s part of what Royal Enfield sells in a month. What went wrong?
The worst pandemic in a hundred years has caused a sharp decline in corporate forums in all sectors and countries. For Harley Davidson, the iconic American cruise ship motorcycle manufacturer founded in Milwaukee, this is something intense. Around the world, the pandemic has only accelerated the need for restructuring. To stay afloat, Harley plans to reduce its product portfolio by a third and reduce its global footprint to about 50 successful markets. India can be among the countries with the maximum likely to face the axe.
Last August alone, the company ended a decade in the market, but longevity is not a benchmark for success. In the more than 10 years, Harley has sold just over 27,000 games at the country’s leading Royal Enfield, promoting twice as many months. In the last fiscal year, it sold only 2,470 games and only about a hundred motorcycles in the first quarter of this fiscal year, nor is it successful and there are no symptoms of a change in the near future. – General Motors and Ford (who merge their operations in India with the Mahindra Group), Harley discovered that the stage in India was difficult. The exit door is closer than ever. Here’s what it doesn’t paint for the company:
It’s not a bike market.
In line with that, India is one of the largest two-wheeled vehicle markets in the world. More than 17 million two-wheeled vehicles were sold on the double-wheeled vehicle market in the last fiscal year, more than anywhere else in the world. Market spot for large, loud and noisy recreational motorcycles where Harley excels, but for insignificant passenger machines for runabouts within the community that charge less, they are simple and reasonable to use More than 90% of them are motorcycles, scooters and mopeds with a capacity of less than 150 cm3. Volumes in the category for motorcycles with engines over 500 cc and Harley function are limited to a tone greater than 25,000 games consistent with the year. Harley simply doesn’t target India.
Incomplete portfolio
India’s smallest and most affordable Harley motorcycle is the 750cc Street 750 which costs Rs 4. 7 lakh. The complete diversity of more than a dozen motorcycles is completed with the 1923cc CVO Limited which costs more than part of a crore. , even with exciting financing features, puts a Harley out of the success of most Indians. Which did not help the company stay in supplying smaller motorcycles and more affordable motorcycles to emerging markets like India. , which have Triumph and KTM, or sports motorcycles like BMW. Although under a Harley logo, this would have been anathema to purists, who travel only with cruise ships and tourists, Harley canned with a niche and a small segment of the market.
Royal Enfield
In India, Harley Davidson discovered a fierce challenger at the Royal Enfield and, by all means, failed against its local rival. In fact, Enfield’s expansion over 10 years suggests that Harley Access is only helping it. As its owner Siddhartha Lal says, the noise and interest that surrounded Harley Davidson when it entered India gave the cruiser a special touch in the country. Customers took one look at a Harley and drool over it, but ended up buying the most affordable, lightest, and least difficult from Enfield. What hurts corporate America the most is that the Indian logo has not been idle. Without having to just cruise, Enfield launched newer models like the Himalayan all-rounder. More recently, it went straight into Harley territory with the 650cc twin-cylinder Interceptor. Enfield was ready for the taking, too, and its large market share meant that even a small hit would have been enough to keep Harley going. But he didn’t even hit a decent half hit. Disdainful throughout, Harley still has no answer for smart old Enfield.
Lack of partner
If you can’t beat them, sign up for them. KTM and Triumph did it with Bajaj Auto and BMW did it with TVS. Harley remained in excellent isolation, the result is there for everyone. Although there have been widespread rumors of a possible link with India’s largest two-wheel manufacturer, Hero MotoCorp, corporations have never admitted or rebutted such accusations. Instead, Harley discovered a wife in Qianjiang, China, a subsidiary of Geely Motors, to make them smaller. The first motorcycle of its kind can simply be a 350cc cruiser that would place it in the middle of Enfield territory in India. If I had been with an Indian society, say a hero, it would have been another story.
Not for India
Another great explanation for why Harley couldn’t sell in India in bulk, he thought it should, was that many consumers felt their suspension and chassis had not been tuned enough for Indian nest-covered roads. -of chicken. Bad brakes and burnt clutch discs are the main apparent problems, and repairing or replacing them is not an easy task either. Social media sites are full of consumers sharing their horrible reports: portions that cannot be obtained at dealerships for weeks, higher service costs, or recurring failures. At many events, Harley has also had to take those issues into account. While the R word is no longer taboo in India, it has done nothing smart for the credibility of the company. The circulating belief was that bicycles are not supplied to cater to the vagaries of Indian roads. “Customers expected to have trouble-free ownership when buying a motorcycle for Rs 10 lakh and more. Instead, they found out they had a white elephant that needed a lot of maintenance, ”says a former corporate trader. “They didn’t do well. ” He is not at all surprised by what happened to Harley in India.
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