Link Copied

Harley Davidson is the latest to join the list of global auto companies exiting India in last five years — Here’s a closer look

Harley Davidson is the latest to join the list of global auto companies exiting India in last five years — Here’s a closer look
  • The Indian auto space has always been a tough space for the foreign carmakers, and over half a dozen companies have exited India over the past decade.
  • These are the global auto companies that have ceased its India operations in the past five years.
  • Check out the latest news and updates on Business Insider.
Advertisement
Harley Davidson made headlines yesterday after the company announced its plan to exit India and significantly reduce the size of its sales office in Gurgaon. But Harley is not the first one to cease its operations in India. The Indian auto space has been a grim space for the foreign carmakers due to a myriad of factors, including tough competition, rising debt and poor brand recall. More than half a dozen companies have exited India over the past decade.

In fact, four global auto majors exited India last year, on the back of dismal sales due to high prices. Owning a car or premium bike is still a luxury in India, and less than one-third of the population can afford it.

These are the global auto companies that have ceased Indian operations in the past 5 years:

UM Motorcycles

UM Motorcycles

American bike maker United Motors ceased its operations in India in October 2019. United Motors used to sell Royal Enfield rival, the Renegade cruiser. While ceasing its operations, the company cited poor sales and lower demand as the rationale behind its exit.

Advertisement

Cleveland Motorcycles

Cleveland Motorcycles

The US-based Cleveland Motorcycles exited India within one year, after announcing its entry into the two-wheeler market at the 2018 Auto Expo. The brand eventually ceased operations in 2019, citing weak demand for its bikes.

Advertisement

Fiat

Fiat

The Italian automobile manufacturer Fiat or FCA India Automobiles stopped producing cars at the start of 2019 and finally exited the market in March the same year. The company started its operation in the year 2012 and became a household name in India. According to reports, the company exited ahead of the stricter ABS safety and emission regulations, which none of its back then models complied with— Linea and the Punto.

Advertisement
Advertisement

MAN

MAN

The Volkswagen Group company, MAN Truck and Bus exited India in 2018. This came after several years of unfruitful operations in the wake of poor demand for their commercial vehicles. The company faced tough competition from home-grown CV companies like Tata Motors and Ashok Leyland.

Advertisement

Ssangyong Motor Company

Ssangyong Motor Company

The fourth-largest South Korea-based automobile manufacturer wasn’t able to hold its ground in India and pulled its operations in 2018. Only one SsangYong product made it to India, and it was pulled out of the market within four years due to a very limited brand recall value. Later M&M, the Ssangyong Motor Company parent, decided to launch a SsangYong product, G4 Rexton, under its own crown.

Advertisement

Eicher Polaris

Eicher Polaris

The joint venture of Eicher Motors and Polaris Industries, Eicher Polaris, ceased its operations in March 2018— within six years of its incorporation. The joint venture saw an investment of more than ₹350 crore. While shutting the operations, Eicher Motors said it was getting increasingly difficult to sustain operations with significantly lower than expected sales.

Advertisement

General Motors

General Motors

The American multinational corporation General Motors which entered India in 1996, decided to close its India operations in May 2019. After several experiments with its brand like Chevrolet and Opel, General Motors finally exited due to mounting losses, near-negligible sales.

Advertisement