Harley-Davidson’s dealers on Tuesday said they are looking at taking legal action against the US cult bike manufacturer, which in September announced exit from the country, over measly compensation. The dealers are unsatisfied against the company over compensation post its Indian operation shut down. There are 33 Harley-Davidson dealers in India. The dealers said they are unhappy with the compensation being offered to them and due to this they are now forced to evaluate legal options. Recently, the company entered into a redistribution partnership with Hero MotoCorp to sell its bikes in India. Due to the partnership and the COVID 19 situation the dealers either have to shut shop or switch to smaller format showrooms to recover losses. The US-based company is offering to dealers just Rs 1,500 per square feet, which is way too less, and that too with various riders. There is also no clarity on how the aftersales system would work going ahead. On September 24, the motorcycle company announced the shutdown of its Haryana Plant and as a part of a restructuring operation the company is downsizing its sales operations in India due to the economic climate triggered by the COVID-19 outbreak. Harley-Davidson dealers say they have facilitated the entry and development of the iconic American motorcycle brand in India for over 11 years and have followed all the norms set by Harley-Davidson to every dealership. Apart from an investment of around Rs 4 crore everywhere, dealers have spent Rs 1 crore per dealership for providing world class service facilities with equipment, parts and trained manpower.
