Indian Dealers Consider Legal Action Against Harley Davidson Demanding Compensation For Their Loss

The dealers of Harley Davidson in India have now decided to take legal action against the iconic bike makers for the compensation of their losses.

Rohan Patil

November 11, 2020

Trending News

3 min


The US cult bike maker Harley-Davidson had recently announced its decision of exiting the Indian market. Harley-Davidson was since then involved in a legal battle to make their exit from India. However, legal trouble does not seem to end for them. Harley-Davidson had formed an alliance with India’s Hero Motocorp. The dealers in India are now exploring legal action against the iconic American motorcycle brand after it effectively exited the market as part of a broader restructuring plan.

Also Read | Hero MotoCorp Inks Deal With Harley-Davidson To Develop Premium Motorcycles

Several dealers of Harley-Davidson in India have now hired the leading Indian law firm AZB & Partners in order to review their paperwork with Harley-Davidson. This measure has been taken to suggest if there is any legal remedy available for the compensation of their losses. The US motorcycle brand had announced in September that it is going to discontinue their production and sales in India. This major move was taken after the company struggled to gain momentum in the Indian market after almost a decade of struggle. After a month, it had entered a distribution tie-up with India’s Hero Motocorp. It is the largest bike makers in the whole world. Hero Motocorp will sell motorcycles under the Harley brand as part of their tie-up. India is one of the largest motorbike and scooter markets in the world. But the major percentage of sales come from the low-end commuter model sale. This is where the sales of Harley-Davidson took a massive blow.

Also Read | Harley-Davidson Bids Adieu To Indian Market

Federation of Automobile Dealers Associations of India has said that it generally costs between $670,000 to $1 Million to set up the dealership of Harley-Davidson. The compensation that is being offered by the company to the dealers is merely around 10% of the total investment. The industry data has shown that Harley-Davidson’s annual sales in the country were down by 50% to 2400 units in the fiscal year to March 31 from over 400-600 years five years ago. The dealers have demanded proper compensation for their loss. America’s General Motors, UM Motorcycles and MAN trucks had announced their exit in the last three years creating uncertainty among dealers.

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