Decision to lead to a loss of up to ₹130 cr. for dealers: FADA
Automobile dealer body FADA on Friday said the closure of Harley-Davidson’s operations in India would lead to job losses for up to 2,000 workers across the brand’s 35 dealerships.
The Federation of Automobile Dealers Associations (FADA) said that besides job loss, the exit of the American cult bike maker would also lead to a loss of up to ₹130 crore for the brand’s dealer partners.
“Harley-Davidson has not informed any of its dealer partners about its closure plans and dealers are yet to receive any official communication,” FADA President Vinkesh Gulati said.
With a luxury brand like Harley, setting up its dealership costs anywhere between ₹3-4 crore, and with a total of 35 dealerships, ₹110-130 crore will go down the drain, Mr. Gulati said. “Luxury two-wheeler dealership on an average employs 50 people. With 35 Harley dealers, around 1,800-2,000 people at dealerships will lose their jobs,” he added.
Moreover, there will be customers who will not receive glitch-free service as spares will now be in shortage, Mr. Gulati noted.