The Reason for Harley Davidson Fail in India

 

When it comes to the touring or cruiser bike, street bike, the one name that comes to our mind is Harley Davidson.

 

Harley Davidson is an American motorcycle manufacturer founded in 1903 Milwaukee, Wisconsin. It is a major bike manufacturer is US and sells international with more than 1500 dealer across the globe. It is known for its touring, trike, soft tail, H-D Street, sportster and its customization.

The brand Harley is portrayed as old heavy and fancy bikes or can be called as “BAD ASS”. The brand was doing good business across the world.

However, few days before Harley Davidson announces pack up from the Indian Market, as the market share and sales was declining. The company was able to sell only 27000 units in 10 years and in the last fiscal year, it was able to sell only 2470 units. However, there are few things because of which company has to take this drastic step.

 

The reason for Harley Davidson failure in Indian Market:

1.    Not a Suitable Market- The Indian market was not suitable for the heavy bikes, as the Indian market is the big market for bikes, it has sold around 17 million bikes in last fiscal year. The consumers in India likes cheap, dirt and light weighted bikes, which could run in “small Gallia” without any problem and the bikes that has low maintenance cost. Over 90% of bikes in India are Scooter or moped with 150cc. The Harley bikes starts from 500cc and that is not meant for Indian Market.

2.    Pricing- The reason behind the failure for Harley Davidson bike in India was pricing too. As Harley Davidson, basic model starts from Rs.4.7Lakhs and the cost just goes up to Half a Crore with the change in model. This type of price involves high financing. Other factors for failure was that the bike is not off-roader, like BMW, KTM, Kawasaki and many more.

3.     Competition- in India Royal Enfield was a tough competitor to Harley as it was giving cruiser, off-roader in less price and with varieties of option to consumer to choose from at a lesser price rate than Harley Davidson was. Enfield massive market share also was a problem to the brand and a dent to Harley have been enough to sustain itself in the market.

4.    Lack of proper Planning- The brand was also suffering due to its planning and strategic decision. Other big brands like Triumph, BMW, KTM was doing manufacturing of their bikes with the Indian brands like BAJAJ. However, Harley went for isolation and the bikes sales was also going down from 4708 units to 2470 units. The volume of production fell down from 11753 units 4533 units.

5.    Wrong marketing Strategy- The Company was targeting the 30 to 35yrs old person. By doing so, they missed out youth and their needs. Other brands like KTM, Yamaha and others came out with light weighted bikes and more technologically equipped bikes at a lower price. However, the Harley was targeting youth with cruiser and heavy weight and expensive bikes.

6.    Problem with brakes and parts replacement- The other problem with the bikes was faulty brakes and clutch plates were the major problem that was faced by the bikes owner. The parts was also not available with the dealers and for weeks, the parts very heavily priced. The perception of the consumer also changed with the bike that “not suitable for rough and handle Indian rode’s”. The buyer who is paying Rs.10Lakhs does not want hassle in its ownership.