Hero MotoCorp, Harley-Davidson join hands for Indian market

Harley-Davidson and Hero MotoCorp on Tuesday announced that the iconic American motorcycles will be back.

“As per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell parts and accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero MotorCorp’s existing dealership network in India,” it was announced.

“As part of a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

“These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India.

“This arrangement is mutually beneficial for both companies and riders in India as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp,” the announcement said.

Late last month, Harley-Davidson announced that the company decided to stop sales and production in India.

The company, which began India operations in 2009, was manufacturing select models at its plant in Bawal (Haryana).

The Rewire, the company said, was part of its strategy to concentrate on “approximately 50 markets primarily in North America, Europe and parts of Asia Pacific that represent the vast majority of the company's volume and growth potential”.

In India, data from the Society of Indian Automobile Manufacturers (SIAM) showed that the company's domestic sales figure in the 2019-20 financial year was just under 2,500 units (2,470 for 2019-20 vs 2,676 for 2018-19). In comparison, Royal Enfield sold just over 42,000 units in FY 2019-20, according to SIAM.

Not very long ago, Harley Davidson had announced prices for its BS-VI range and had even slashed prices of its cheapest model -- the Street 750 -- to Rs 4.69 lakh. The company was selling 13 models in India. The Fat Boy is priced at Rs 18.25 lakh, while the CVO Limited is around Rs 50 lakh.

Harley Davidson used to manufacture the Street family in India and also assemble completely knocked down kits of bigger motorcycles.