After announcing its exit from the Indian market last month, Harley-Davidson has returned in partnership with Hero MotoCorp.
Hero MotoCorp and Harley-Davidson have announced a new agreement between the two great motorcycles. The former will be responsible for the latter’s motorcycle sales and service, along with the retail sale of its parts, accessories, riding apparel, and general merchandise, through existing Harley-Davidson dealers and Hero dealers.
Hero will now manufacture (or assemble) and sell Harley motorcycles under license. This could be an excellent opportunity for mutual growth for both companies. Hero’s extensive dealer network will help Harley penetrate deeper into the Indian market, and its brand could help Hero enter the premium segment, a feat in which it has not been successful to date.
The deal comes on the heels of Harley-Davidson’s new global strategy, ‘The Rewire’. Last month, the US-based motorcycle manufacturer announced that it would be closing its operations in India, after 11 years of struggle. The company has been racking up massive losses and recently lost most of its market share as well.
In an official statement, Hero stated: “This arrangement is mutually beneficial for both Indian companies and motorcyclists as it unites the iconic Harley-Davidson brand with Hero MotoCorp’s strong distribution network and customer service.“
India is the world’s largest market for two-wheelers, but it is also the most price-sensitive. With so many options in the premium motorcycle segment, the competition today is quite tough. Some of these brands have also been offering impressive value for money, thus attracting the majority of customers. By comparison, Harley offered rather archaic technology at a high price, which made it an extremely impractical proposition.
With Hero at the helm, things could change for the better. Not only is it the largest two-wheeler manufacturer in India, the Hero also excels at affordability and mass production optimization. Perhaps we could see the return of Harley-Davidson models with massive price cuts! Plus, with Hero handling the service aspect as well, current Harley owners don’t need to worry about maintenance or spare parts availability.
