The Morning Call

Harley rumbling out of India

Iconic US cycle company gives up after more than a decade of weak sales

- By Karan Deep Singh

NEW DELHI — Bhupender Singh crouched over a fuel tank inside a HarleyDavi­dson showroom. A row of motorcycle­s gleamed in the afternoon sun; one metallic red, another with a black matte finish and a slightly taller variant in blue.

The motorcycle­s were not for sale, but for repair. The dealership’s front door was locked. Harley-Davidson, the proudly American company, is giving up on India because of weak sales, after more than a decade of pursuing a huge but ultimately frustratin­g place to do business.

“It’s all over now,” said Singh, a service representa­tive. “There are no bikes to sell anymore.”

The closure has dealt a blow to India’s ambitions to lure manufactur­ers, a campaign modeled on China’s success called “Make in India.” It has set back Harley

Davidson’s efforts to expand its popularity overseas.

Companies looking for the next boom have long eyed India, a country of 1.3 billion with an aspiration­al middle class. Setting up shop there, however, remains difficult. Roads and rails are inadequate in many areas. Land policies flummox constructi­on. India’s red tape is infamous.

In his “Make in India” campaign, Prime Minister Narendra Modi vowed to cut bureaucrat­ic hurdles, invest in infrastruc­ture and take other steps to draw high-end manufactur­ing jobs and design work.

Even before the pandemic, the campaign had been disappoint­ing. Manufactur­ing contribute­s less to India’s economic output than it did a decade ago. The government has struggled to build an ecosystem for manufactur­ers, including infrastruc­ture and industrial parks. Small suppliers who might help a big manufactur­er flesh out a supply chain have a hard time getting credit.

“Harley came to produce for your market,” said C.P. Chandrasek­har, an economist and ex-professor at the Jawaharlal Nehru University in New Delhi. “If they’re not happy, they’ll just get up and leave.”

 ?? REBECCA CONWAY/THE NEW YORK TIMES ?? Gaurav Gulati, owner of the Red Fort Harley-Davidson outlet in New Delhi, says he invested $1.2 million into the business.
REBECCA CONWAY/THE NEW YORK TIMES Gaurav Gulati, owner of the Red Fort Harley-Davidson outlet in New Delhi, says he invested $1.2 million into the business.

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