Companies
Hero-badged Harley on way
Summary
Hero MotoCorp will unveil on 3 July the Harley Davidson X440, the first motorcycle based on a platform it has co-developed with American cult motorcycle maker Harley Davidson after it took over the latter’s India distribution and most of its operations in the country in 2020
New Delhi
Hero MotoCorp will bring in a 400cc motorcycle based on a newly-developed Harley Davidson platform for India, badged as a Hero product in a bid to build a portfolio of premium brands in the country, persons in the know told Mint on condition of anonymity. Hero MotoCorp CEO Niranjan Gupta confirmed that a cross-badged Hero product based on a Harley Davidson model is on the cards, but did not confirm what engine displacement it will have or when it will be launched.
However, Hero MotoCorp will unveil on 3 July the Harley Davidson X440, the first motorcycle based on a platform it has co-developed with American cult motorcycle maker Harley Davidson after it took over the latter’s India distribution and most of its operations in the country in 2020.
The Hero-branded premium motorcycle, which will rival other domestic OEMs such as Royal Enfield and Bajaj Auto’s KTM, will be sold via its soon-to-be-launched exclusive premium dealerships. Hero MotoCorp is on a journey to revamp its extensive retail distribution network to cater to its upcoming line-up of premium motorcycles and electric scooters.
It will also convert 30-40% of its existing 1,000-dealer network to Hero 2.0 showrooms which will house a section of its premium range of motorcycles, starting with its top 50 markets.
The country’s largest two-wheeler maker is banking on its association with Harley Davidson to boost its “premium imagery", even as it seeks to revive its other premium brands in the market through new variants and brand new model launches this year. Hero is focusing on the 160-450 cc categories, where rivals Royal Enfield, Bajaj Auto and increasingly TVS Motor Co. have a lion’s share of the market.
Bajaj Auto and TVS Motor also have international alliances in the premium motorcycle category with KTM and Norton Motorcycles respectively. TVS also has a collaboration with BMW on technologies and future technologies.
Hero MotoCorp will launch a refreshed variant of its 160cc Xtreme motorcycle later this month, followed by the Harley launch in July. The X440 is expected to be launched in the market in time for the festival season.
Hero MotoCorp has outlined a capex of upto ₹1,500 crore every year, which will increasingly be focused on developing its premium portfolio and EVs, Gupta said.
It is adopting a top-down strategy with its EVs to consolidate its premium positioning in the market with a top-end product and then expand volumes with more affordable variants later.
“We will be adding a product in the middle segment and the bottom segment of EV scooters because right now we are positioned at the top-end and there’s a conscious strategy—if we start from the commuter end, it’s very difficult to travel upwards towards premium. So therefore we decided to start in reverse, so we will have to be patient. We didn’t get into volumes and mass segments. We wanted to establish our brand and we have. Now we will put in a portfolio in the middle and the bottom," Gupta said.
