Home / Auto News / Harley makes India comeback, inks distribution agreement with Hero MotoCorp

Hero MotoCorp on Tuesday announced distribution agreement with Harley-Davidson for the Indian market via which, Hero will sell and service Harley motocycles in the country.

"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’s existing dealership network in India. As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name," the Pawan Munjal-led company said in a regulatory filing today.

The agreement comes under the backdrop of Harley announcing its business overhaul actions under 'The Rewire' plan on 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 company further stated.

Earlier this year, Pawan Munjal, chairman, Hero MotoCorp also indicated towards a deal with Harley Davidson for manufacturing and selling premium motorcycles in India.

Harley-Davidson Motor Co. in September decided to exit India, its departure dropping the curtain on a troubled stint in a lucrative market for two-wheelers.

After 11 years of operations in India, Harley said that it is discontinuing sales and production operations in India as part of a global restructuring plan.

The company had earlier hinted at exiting some tough markets as part of its strategic plan, which entails pulling out of loss-making markets and focusing on the US, Europe and parts of Asia Pacific.

In India, the world’s largest and most price-sensitive two-wheeler market, it struggled with sharply declining production and sales.

Indian production volume fell from 11,753 units in FY16 to 4,533 units in FY20 and sales declined from 4,708 units to 2,470 units during the same period.

Harley-Davidson shares jumped as much as 13% in premarket trading on better-than-expected profit as Chief Executive Officer Jochen Zeitz’s moves to cut costs and boost margins on a smaller revenue base paid off in the third quarter.

Meanwhile, Harley-Davidson reported a 9.8% fall in quarterly revenue on Tuesday as global motorcycle demand was yet to recover from the hit to business from the COVID-19 induced lockdowns.

Motorcycles and related product revenue fell to $964 million in the third quarter ended Sept. 30 from $1.07 billion a year earlier.

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