Hero, Harley-Davidson extend ties to expand X440 and build new bike

Hero MotoCorp and Harley Davidson collaboration, ongoing since 2020, will cater to domestic and selected international markets

Hero MotoCorp has extended its partnership with Harley-Davidson to broaden the Harley-Davidson X440 lineup with new variants and to jointly develop an additional motorcycle model. The deal involves design, development, and contract manufacturing, ensuring high standards from both companies, Hero MotoCorp said in an exchange filing on Friday.

 

This collaboration, ongoing since 2020, will cater to domestic and selected international markets.

 

The agreement is an "extension of existing collaboration to expand the X440 motorcycle into new variants and to develop and manufacture a new motorcycle," the filing said.

 

Hero MotoCorp and Harley Davidson partnership

Harley-Davidson, founded in 1903, exited India in 2019, citing high import duties and low sales, but resumed operations through this strategic collaboration. Hero MotoCorp now oversees manufacturing, sales, and service for Harley motorcycles in India, producing models like the X440 at its Neemrana facility.

 

 

The X440, priced between Rs 2.4 lakh and Rs 2.8 lakh garnered significant interest, challenging Royal Enfield's dominance in the segment. This partnership not only boosted local production but also ensured access to Harley-Davidson's international expertise, which aids both companies in capturing the growing demand for premium bikes.

 

In 2023, Harley-Davidson recorded a turnover of $5.84 billion, while Hero MotoCorp posted revenues of Rs 37,455 crore in the financial year 2023-24 (FY24).

 

Additionally, Hero markets its own variant, the Mavrick, contributing to sales of 14,837 units in FY24.

 

For the quarter that ended on September 30, 2024, Hero MotoCorp reported a 5.6 per cent rise in net profit to Rs 1,063 crore, driven by increasing rural demand. Consolidated revenue also surged by 10 per cent, reaching Rs 10,482.93 crore.

 

The company achieved record-breaking retail sales of 1.6 million units during the recent festive season, driven largely by heightened demand from rural markets.