Hero MotoCorp on Tuesday informed that it will sell and service Harley-Davidson motorcycles in India. Also, it will sell Parts & Accessories and General Merchandise riding gear and apparel by means of a network of brand-exclusive Harley-Davidson dealers and Hero’s prevailing dealership network in the country. According to a licensing agreement, Hero MotoCorp will design and sell an array of premium motorcycles under the Harley-Davidson brand name. As per an exchange filing by Harley Davidson and Hero MotoCorp, these arrangements are allied with Harley-Davidson’s business overhaul, The Rewire. Also, it is aligned with the company’s declaration in September to alter its business model in India. In September, Harley Davidson called it quits in India.
The conglomerate which was aiming annual sales of 10,000 units struggled to sell even a quarter of that in financial year 2020. This is despite the fact that the US President Donald Trump had also convinced the Indian government to cut taxes. One of the major reasons which may have caused its exit was the absence of a clear demand outlook. The Covid-19 commotion has pushed back India’s two-wheeler demand by 2-3 years. In August, rating agency ICRA had reviewed downwards sales forecast for two-wheelers in India. It expected sales to decline by 16-18 percent to around 1.7 crore units in FY2021.
For premium bike lovers, it is actually good news. The exit news of Harley Davidson had disheartened many bike lovers in India. Now they can take a sigh of relief as they will be able to get the bike from a trustworthy name in India.
Courtesy: Money Control