+ Harley Davison is one of the American motorcycle manufacturing company, found in 1903. One of the most beloved and legendary brand, as history says. Harley Davidson is a popular iconic brand, noted for its customized style that depicts it as chopper motorcycle style. For the very first time, the company experienced a great loss after launching one of their 45cu model motorcycle. This impacted with heavy losses in the market, and we could see sudden decline in sales. But the company survived with great depression and further bounced back by producing large number of motorcycles for the US Army during world war II. Harley also received two Army Navy E awards for their excellent automobile production during world war II. The company was sold to American Machine and Foundry, in 1969 and they gradually trimmed the workforce, which resulted in low quality production, cost cutting and labour strikes. And soon the campany went bankrupt. No sooner Harley Davidson became Hardly Ableson in a way to jibe. The company did not reached the benchmark in the race of marketing and suffered a great loss. After the company's stability, it entered into the Indian market in 2010. According to a Survey, the value of the Harley brand fell by 43 percent. Harley Davidson is owned by a japanese Kawasaki Motor Company Ltd. Harley announced this agreement in April 1, 2014. + + + + +India produces probably the best and juiciest varieties of mangoes in the world. There are almost 30 assortments of mangoes produced over here commercially. The United States imports basically from Central American nations. Even though India is the world's biggest maker of mangoes, representing near 50% of the world's yield, the U.S. prohibited Indian mango trades during 1980s fretting that Indian farmers utilized risky pesticides to secure the fruit production. + + +India cleared Harley's speculation proposition in 2007 in return for the US lifting an 18-year restriction on mango imports from India. The US had prohibited Indian mangoes because of health problems while India had not permitted Harley because of administrative issues. + +Harley Davison wasn't able to make their network in Indian market. Harley is going to discontinue its sales from the world's largest motorcycle market because of its low demand in the Indian market. The decision is fully based on the '' Rewire Strategy '' under which it will focus on the selected markets only. The company will still provide the sales service through the existing network to their customers, after stopping their production and sales of motorcycle in Indian market. +The rise in the export of Alphonso Mangoes to United State increased over 10 years, particularly when india allowed them for importing Harley Davidson motorbikes in India. There was a swap deal in 2007 between exports of motorbikes and Alphonso Mangoes. In 2006, U.S. President George Bush and Former Prime Minister Manmohan Singh signed a formal agreement that included the concessions for Indian imports of American Harley Davidson motorcycles in exchange for allowing American imports of Indian Alfonso mangoes . That gave a impact of “mango nuclear deal.” between the two countries. + +Exports of mangoes to the United States were revived after almost two decades, when an announcement was made by the US president George Bush in 2006 during his visit to New Delhi. '' In exchange, India has reciprocated with us by allowing imports of the iconic Harley-Davidson motorbikes, provided they complied with Euro-III emission norms.'' India has been exporting mangoes to U.S since 1988. The food item specialists had expressed that the Harley-Davidson bargain appeared to be a win-win circumstance for all the ranchers. India permitted imports of the notable Harley-Davidson motorbikes, given they consented Euro-III emission norms.
As Harley Davidson makes its final move to set out its feet outside the Indian market, many conjectures and questions begin to stir towards the decision itself. The most infamous being the high import duties and tariff imposed by the Indian Government. It may come as a shock, however, in the past, this American manufacturing two-wheeler company had to pay 100% import tariff to the Indian Government. It blatantly means one thing, America gets, “nothing” or this is what President Trump had been saying over many times over this course of action. + + + + +Harley is the third US automaker to abandon interventions in India during US President Donald Trump's tenancy. He first addressed this issue to the US Congress in March 2017 and spoke on multiple occasions on this rather “unacceptable” move of the Indian Government. In June 2018, India reduced its import duty from 100% to 50% after Trump’s negotiation to PM Modi. + + + + +Back in 2017, an American multinational corporation "General Motors" headquartered in Detroit, scraped its interventions in the country and sold its plant in Gujarat. + + + + +One of US automakers, Ford Motor Company excoriated its interests and abated independent interventions in India last year. After failing to attain steadiness for more than two decades in India, resettled most of its assets to a joint venture with Mahindra & Mahindra. + + + + + + + + +India had been bagging a huge surplus, and it seems Trump was rather “fair” in raising these issues, looking at the negative balance of trade between these two nations and Harley Davidson’s departure at this point in time. A high tax rate like this proportionally gives rise to the selling price of the two-wheelers in the Indian Market leading to its fall in sales and reaching the mass chunk of the population. If we look at the statistic of its aggregate past sales record over the financial years, it was able to sell only 27,000 two-wheelers, which is a significantly low figure considering the large population of India and its market potential. All dots connecting to this point tells the story of an-unrationalized import tariff adopted by Indian Governments pushing Harley Davidson to make the ultimate exit. + + + + +India imposes one of the highest taxes on automobile sectors among key world markets when compared with the GST equivalent Value added tax (VAT) imposed in other countries. The goods and services tax (GST) was implemented in July 2017 and embodied a host of indirect taxes, including excise duty, VAT, and entertainment tax. The GST issue on automobiles has been a disputable concern among the exporting countries because of the high tax levied on automobile sectors. Cars and two-wheelers entice a GST rate of 28% in India and a tariff that ranges from 3 to 22%, taking the effective tax rate to up to 50%. + + + + + + + + +India stands in the second position in the list of the most populous countries in the world. It has one of the largest markets for automobiles industries. India with its huge consumer market is an attractive place for many automobile companies from all over the world. There are many International automobile companies that are exploiting the Indian market. + + + + +However, it has been facing a lot of problems in recent years. Moreover, the demand for automobiles in the country has fallen sharply after the outbreak of COVID-19. This resulted in a huge reduction in the turnovers and profits of the companies. +High Tax rates on vehicles have worsened the market condition. In the G.S.T. regime, India imposes one of the highest taxes on vehicles when compared with the other countries in the world. The high tax issue along with the other major problems like fall in demand, increased competition, lower demand for luxury goods in India, etc. are forcing many international companies to quit their operations in India. + + + + + + + + +India's tax policy in reference to the automobile sector has been constant for the last three decades now in the form of allowing foreign investment and triggering domestic manufacturing. According to the sources, companies should chop their costs of manufacturing by cutting down the royalty payments to their ancestor companies abroad instead of asking the government to reduce GST. Taxes on automobiles are mounting across the globe without much exception.
India with its large population is a charismatic destination for the automobile industry. India became the fourth biggest auto market in 2018. Vehicles contribute approximately 7% to the GDP of our country pays millions to people. But recently, it has been seen that India's automobile industry is light-headed under huge pressure with the collective domestic sales fall monthly starting from September 2018 onward. Even General Motors left India earlier. Now Harley-Davidson is quitting India which is a major setback for the country. It is very important to retain foreign manufacturers in the middle of countries' worst economic downfall in decades. + + +Now, this is high time for India to take a step to conserve the foreign industries. India needs to check the overall financial wellness of the ecosystem and has explained below a few factors devoting to show the growth of the automobile sector and some suggestive steps: + + + 1. To improve the Electric Vehicle Industry — While the Indian Government has introduced various schemes to improve the demand for Electric Vehicle in India an unfavorable impact on the sector due to inherent inverted duty structure which means that the makers have to pay a higher tax raw material as compared to the output tax chargeable on Electric Vehicle. The government should check to decrease the GST rates suitable for all components of Electric Vehicle; this would surely decrease the overall cost of production of such vehicles and give momentum to the Electric Vehicle sector. + + +2. Accelerate policy reforms to improve exporters confidence — Considering the agreements at a global level with the mortal Merchandise Export from India scheme, a new scheme Remission of Duties or Taxes on Export Product is introduced. The motive of this scheme is to repay the taxes or duties forming part of the export or wholesale product by way of outcome of duty credits. While the Government estimates and commitment to the Indian wholesalers by continuous assurance in regard by the sector at large. It is suggested that guidelines in this regard are clearly spun out, to bring confidence to the Indian wholesalers. + + + 3. India can work on its industrial infrastructure which tempts the foreign industries to set up in India. These foreign Industries generate employment opportunities for countrymen. The government can tie-up International companies with domestic companies like Austria-based company KTM tied with Indian firm Bajaj. This will create competition in the Indian market and retain International companies in the country. + + +4. Overpriced Tax Rates for Automobiles — In spite of its contribution to economic growth eventually, this industry has faced deprivation of overpriced tax rates for considerably a longer period. The Government of India, to activate the demand during the ongoing huge slowdown, may consider decreasing the GST rate imposed on automobiles for a temporary period of 6 to 12 months as a short- term relief measure. + + +While the Government of India has taken significant measures for the industry, it is needed for an hour to bring in some temporary measures which can surrender instant results in encouraging demand, settling liquidity crunch, and create new jobs.