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    Harley Davidson partners with Hero MotoCorp to sell motorcycles in India

    Synopsis

    Per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts, 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.

    Harley-Davidson joins hands with Hero MotoCorp for Indian market, inks distribution pact
    NEW DELHI: Harley Davidson, the iconic American bike maker, is hitching a ride with local market leader Hero MotoCorp in a renewed attempt to capture the premium end of India’s 17-million-plus two-wheeler market – now the world’s largest.

    ET was the first to report that despite discontinuing its operations in the country, Harley was evaluating options to retain its presence in India, where increasing affordability and rising incomes promise significant growth potential for more premium bikes.

    As part of the partnership, Hero will develop and sell a range of premium Harley Davidson motorcycles in India, the arrangement neatly dovetailing into Hero’s strategy to climb the value chain – and register its presence in the performance-bike segment.

    “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 Indian partner said in a statement.

    The tie-up comes after several months of industry speculation. Harley had decided to shut down its India operations in September this year as part of its global ‘Rewire’ strategy.

    Hero will provide the sales and service backbone to Harley’s stuttering India operations. As part of the distribution deal, Hero will sell Harley products in India through its dealer network. These products will be imported as completely built-up units (CBUs).

    Hero will also sell parts, accessories and general merchandise riding gear and apparel through the network of brand-exclusive Harley-Davidson dealers, although it may not retain all of the existing Harley Davidson outlets.

    Harley Davidson has 22 dealer partners across 33 touchpoints in India. In its 10-year play in India, the company has sold more than 25,000 units so far.

    “While for Harley the partnership will serve to keep alive its brand and take care of existing users in the Indian market, for Hero the benefits will accrue from knowledge-sharing,” said V G Ramakrishnan, managing partner at Avanteum Advisors LLP. “The company will get access to technology to develop a range of premium motorcycles, which will help it challenge the likes of Royal Enfield.”

    Harley Davidson had said in September that it was “evaluating options to continue to serve its customers” in India. The company had informed dealers that it would not be renewing contracts after December 31.

    This partnership with Harley Davidson is in keeping with Hero’s mission to ‘Create, Collaborate & Inspire’. Hero MotoCorp has been actively looking for new partners to expand its product portfolio and geographic reach.


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    ( Originally published on Oct 27, 2020 )
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