A month after American motorcycle manufacturer Harley-Davidson announced that it would be exiting India, India's leading motorcycle maker Hero Motors has said it would handle the sales and servicing for the iconic American motorcycles in the days to come.
"Embarking on a new journey together, Harley-Davidson, Inc., the legendary motorcycle manufacturer and Hero MotoCorp, the world’s largest maker of motorcycles and scooters in terms of unit volumes, today announced that the two will ride together in India. 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," the two companies said in a press release.
"As part of a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name. These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India," the release said.
"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," it added.
While Hero Motors sold nearly 7 lakh units in September, Harley-Davidson managed only 176. The company's poor sales in India are largely on account of the premium price category it competes it—something US President Donald Trump had earlier decried, claiming India's import tariffs on Completely Built Units (CBUs) were too high.
What was once a 100 per cent tariff was reduced to 50 per cent, but Trump reportedly still found this rate too high, leading to speculation that the same would be dropped to the single-digit range.
In September, Harley-Davidson announced it would be exiting India as part of its global restructuring plans, a move that saw the termination of 70 jobs in India.
