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Business News/ Auto News / Hero MotoCorp to sell, develop Harley-Davidson motorcycles in India
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Hero MotoCorp to sell, develop Harley-Davidson motorcycles in India

Over the last two years, the American company has been scouting for local partners in India and China to bring down the cost of operations and develop cheaper motorcycles to cater to the local market

Harley-Davidson announced on 24 September that it would downsize the global dealer network and discontinue sales and manufacturing operations in India (Photo: Ramesh Pathania/Mint)Premium
Harley-Davidson announced on 24 September that it would downsize the global dealer network and discontinue sales and manufacturing operations in India (Photo: Ramesh Pathania/Mint)

NEW DELHI: Hero MotoCorp Ltd on Tuesday announced an agreement with Harley-Davidson to sell and service motorcycles manufactured by the US company. The Pawan Munjal-led firm will also develop premium motorcycles to be sold under the Harley-Davidson brand in India in the coming years.

This announcement comes on the back of Harley’s decision to stop manufacturing its vehicles in India. Over the last two years, the American company has been scouting for local partners in India and China to bring down the cost of operations and develop cheaper motorcycles to cater to the local market.

“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," the companies said in a statement.

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

Both companies have been negotiating a potential deal to develop mid-size motorcycles in India over the last two years. Harley’s top management decided to prune the company’s overall cost structure by closing down some of the loss making subsidiaries as covid-19 led disruptions impacted profitability significantly.

Earlier this year, Pawan Munjal, chairman of the country’s largest two-wheeler manufacturer, also indicated towards a deal with Harley Davidson for manufacturing and selling premium motorcycles in India.

Harley-Davidson will be the second global manufacturer of super premium motorcycles, after Triumph Motorcycles, to collaborate with an Indian company for sales and manufacturing of motorcycles in India. Last year, United Kingdom’s Triumph Motorcycles announced tie-up with Bajaj Auto Ltd for joint development, manufacturing and sales of mid-size motorcycles in India.

Most of these global manufacturers did not manage to succeed in the Indian market as limited affordability and high import duty kept their products out of bounds for the Indian customers.

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Published: 27 Oct 2020, 05:19 PM IST
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