Harley Davidson’s exit from India — the fourth marquee brand to do so in three years — has brought into focus the plight of dealers who are left nursing huge finacial losses.

Dealer associations feel the country needs legislation to protect dealers from financial losses as well as job cuts when original equipment manufacturers (OEMs) decide to shut shop in the country.

Harley Davidson has said its 32 dealers across the country “will continue to serve customers through the contract term”. The company has annual contracts with its dealers that ends on December 31, 2020.

“There is no law to protect the dealers from such completely one-sided, arbitrary act of OEMs. The contracts that are signed between the manufacturers and dealers are heavily tilted in favour of the manufacturer,” said Vinkesh Gulati, president of the Federation of Automobile Dealers Association (FADA).

The association is going to represent Harley dealers in any discussions with the company and the government.

“Dealers have started writing to us to take up their case,” said Gulati. “We are going to write to the Prime Minister and the minister for heavy industries and public enterprises,” said Gulati.

Before Harley, OEMs such as General Motors, MAN Trucks and UM Lohia shut shop in India. “We have successfully represented dealers and got compensation from GM and MAN Trucks. But the need of the hour is to have legislation to protect the interest of the dealers as well as customers,” he said.