All 33 Harley-Davidson dealerships could be under Hero MotoCorp management as a new deal is reportedly in place for local distribution.
Harley-Davidson made its debut in India in August 2009 and its first dealership was established locally the following year. The famous American manufacturer of premium motorcycles has an assembly plant in the state of Haryana and, after a decade of being in business, the brand is exiting the domestic market as part of its new restructuring plans.
We cannot simply point to a single factor, as global trade tensions and local fiscal policies are part of the main reasons. However, the brand did not embrace the changes in the motorcycling industry and its problems have been well documented in recent times, exacerbated by reliability issues and the lack of modern technologies in its motorcycles.
The company announced in August that it would be exiting markets with low sales demand and with only 2,500 units sold in India in the last financial year, it was not a surprise that it was on the list. Speculation about the Milwaukee-based brand’s possible association with Hero MotoCorp has been going on for a few weeks.
According to recent reports, HD and Hero are in talks for a distribution deal and, more importantly, it will allow the former’s motorcycles to be retailed in India. The distribution agreement will allow Harley Davidsons to be imported from abroad, as Hero appears to act as the sole distributor. An interesting part of the collaboration will be contract manufacturing.
The nation’s largest two-wheeler manufacturer could act as a contract producer for at least one of the Harley-Davidson motorcycles that could be in the 300-600cc range. While no official details about the partnership have been released yet, we expect to hear more about the relationship in the coming days, including financial aspirations.
The deal could benefit Hero MotoCorp, as it has largely remained a volume cartoon maker with affordable prices. Harley is said to provide technology support and inputs on premium quality standards and its 33 outlets could be under Hero management.
