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Harley-Davidson Dealers In India Exploring Legal Action Against Company After Exit

Harley Davidson logo. (Image Source: Reuters)

Harley Davidson logo. (Image Source: Reuters)

Harley-Davidson, in September, said it would discontinue its sales and manufacturing operations in India after a decade of struggling to gain a foothold.

Dealers of Harley-Davidson in India are exploring legal action against the company after it announced an imminent exit from India citing a broader restructuring plan. Reports suggest that a number of dealers have hired leading Indian law firm AZB & Partners to review their paperwork with Harley-Davidson and suggest if there is a legal remedy, Rishi Aggarwal, a dealer for the motorcycle company.

The U.S. company in September said it would discontinue its sales and manufacturing operations in India after a decade of struggling to gain a foothold. A month later it entered a distribution deal with India's Hero MotoCorp which will also develop motorcycles to be sold under the Harley-Davidson brand.

Harley-Davidson's annual sales in the country halved to 2,470 motorcycles in the fiscal year to March 31 from 4,641 units five years earlier, industry data shows.

As per its distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell Parts and Accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in India.

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As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name. As per a statement issued at the time, this arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp.

(With input from news agencies)

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