Dealers in India consider legal action against Harley Davidson

NEW DELHI, Nov 10 (Reuters): Dealers in India for Harley-Davidson Inc said on Tuesday they are exploring legal action against the iconic American motorcycle brand after it effectively exited the market as part of a broader restructuring plan.

A number of dealers have hired leading Indian law firm AZB & Partners to review their paperwork with Harley-Davidson and suggest if there is a legal remedy, Rishi Aggarwal, a dealer for the motorcycle company, told reporters.

"Harley has to compensate us for our losses. That is the only bone of contention. AZB is studying the case," he said during a press conference organised by The Federation of Automobile Dealers Association (FADA) in India.

Harley-Davidson did not immediately respond to a request for comment.

The U.S. company in September said it would discontinue its sales and manufacturing operations in India after a decade of struggling to gain a foothold. A month later it entered a distribution deal with India's Hero MotoCorp which will also develop motorcycles to be sold under the Harley-Davidson brand.

India is one of the world's largest motorbike and scooter markets but the bulk of sales come from low-end, commuter models.

Harley-Davidson's annual sales in the country halved to 2,470 motorcycles in the fiscal year to March 31 from 4,641 units five years earlier, industry data shows.