Harley-Davidson Makes India Comeback, Joins Forces With Hero MotoCorp For Distribution Of Motorcycles

The strategic tie-up with Harley Davidson will give Hero MotoCorp exclusive distributor rights to import and sell Harley bikes in India.

(File Photo/ Getty)

New Delhi: A month after announcing exit from the Indian market, premium bike manufacturer Harley Davidson announced its tie-up with India’s leading bike manufacturer Hero MotoCorp to develop and sell in India. With the tie-up, Hero MotoCorp will become the official distributor for Harley Davidson in the country via exclusive HD dealers & existing Hero MotoCorp network. To quote the agreement, “As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name” The strategic tie-up with Harley Davidson will give Hero MotoCorp exclusive distributor rights to import and sell Harley bikes in India. As per Reuters report, Hero MotoCorp will become a contract manufacturer for at least one Harley motorcycle with 300-600 cc engine capacity, which the American auto major will launch later. The classic American cruiser maker entered Indian market with high hopes in 2009 to profit in a market that was already one of the biggest for motorcycles around the world and had a young aspirational consumer base to boot. In last 10 years, Harley has sold only a little over 27,000 units in the country; segment leader India’s indigenous Royal Enfield sells double of that every month. Last fiscal, it sold a mere 2,470 units and only about 100 motorcycles in the first quarter of this fiscal.  The coronavirus-led lockdown added to the woes of the company, which was already facing declining interest among young customers in markets around the world. With the legacy, brand was looking for a local partner to remain present in the world’s largest two-wheeler market. Harley’s main competitor, UK’s Triumph Motorcycles, is in a non-equity long term partnership with Bajaj Auto to introduce mid-size motorcycles for India and the global markets. While TVS Motor too has a partnership with Germany’s BMW to develop mid-engine size motorcycles. The announcement also comes with relief to the bike dealership owners, as dealers of Harley Davidson have been worried about unsold inventory, investments into setting up state of the art showrooms and their employees. Some have even been considering legal options to put pressure on the company.