 "Hero MotoCorp and Harley Davidson may bring more US motorcycles to India")
Hero MotoCorp and Harley Davidson Inc are set to broaden their collaboration to introduce more models of the American motorcycle brand to India, fuelled by the overwhelming response to the X-440, according to a report by The Economic Times (ET).
The two companies are nearing an agreement, which will extend their existing partnership beyond the current single model. This expansion might also include the manufacturing of Harley Davidson models in India for export to other markets.
A formal announcement on the partnership is anticipated within weeks.
The market for premium motorcycles in India is growing, and Harley Davidson executives have expressed their satisfaction with the joint venture with Hero MotoCorp, ET stated
Currently, Hero MotoCorp manufactures the X-440 range at its Neemrana facility in Rajasthan.
The X-440, the first product jointly developed by Hero MotoCorp and Harley Davidson, is priced at around Rs 2.4 lakh. This model aims to challenge Royal Enfield’s dominance in the premium bike category, which enjoys higher operating profit margins compared to the sub-250 CC segments.
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Last month, the two companies also opened bookings for the range of 2024 Street Glide and Road Glide models of Harley-Davidson motorcycles in India. These motorcycles are expected to be "more powerful, lighter, and more dynamic, and feature all-new visual design elements," the company said in a press release.
Hero MotoCorp, Harley Davidson partnership
The partnership began with a licensing agreement in October 2020, which allowed Hero MotoCorp to manufacture the Harley Davidson X-440 model in India.
This agreement also included the rights to sell and service Harley Davidson motorcycles, parts, accessories, and merchandise through both brand-exclusive Harley Davidson dealers and Hero MotoCorp’s existing dealership network in India.
Harley Davidson, founded in 1903, decided to halt its manufacturing operations in India in 2019 due to poor demand and sales, driven largely by high import tariffs that rendered its products uncompetitive. The subsequent agreement with Hero MotoCorp enabled the development of Harley Davidson products locally, making them more affordable for the Indian market.
Hero MotoCorp also markets its own variant of the X-440 under the Mavrick brand. In the last financial year, Hero MotoCorp sold 14,837 units of the X-440 and Mavrick models. The company has become the third-largest seller of motorcycles in the premium segment (engine capacity between 350 CC and 500 CC) in India, trailing Bajaj Auto and Royal Enfield.
Responding to strong consumer demand for the co-developed 440 CC platform motorcycles, Hero MotoCorp increased production capacity from 6,000 units per month in January to 10,000 units per month in March.