Harley-Davidson and Hero MotoCorp to ride together in India
Harley-Davidson and Hero MotoCorp to ride together in India
BusinessToday.In
- Oct 29, 2020,
- Updated Oct 29, 2020 12:02 PM IST
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Harley-Davidson and Hero MotoCorp on Tuesday announced that the two are entering into a partnership in India. Hero MotoCorp, the world's largest maker of motorcycles and scooters in terms of unit volumes, will sell and service Harley-Davidson motorcycles and accessories through a network of brand-exclusive Harley-Davidson dealers and the Indian bike maker's existing dealership network across the country.
Here is what we know so far.
Photographs by Bandeep Singh
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1- The agreementAccording to the licensing agreement, Hero MotoCorp company will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.The company will take care of service and parts requirements for the Harley bikes.
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2- Mutually beneficial
"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," Pawan Munjal-led automobile company said in an exchange filing.
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3- Harley's exit in SeptemberIt was in September that Harley-Davidson had announced its exit from India amid sharply declining production and sales. The company's exit from India, after running the operations for 11 years, was part of its global "2020 Restructuring Activities".
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4- RestructuringIn the second quarter of 2020, the Milwaukee, Wisconsin-based company had initiated restructuring activities, including workforce reduction and termination of certain contracts that would result in elimination of around 700 positions globally, including termination of close to 500 employees.
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5- Second global manufacturer to partner with Indian company
After Triumph Motorcycles, Harley-Davidson is the second global manufacturer of super premium motorcycles to collaborate with an Indian company for sales and manufacturing of motorbikes in India. Last year, United Kingdom's Triumph Motorcycles also announced the same joint partnership with Bajaj Auto Ltd for manufacturing, developing and sales of mid-size motorcycles in India.
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6- Entry and exit From its entry to exit, Harley-Davidson's journey in the country witnessed the governments of India and the US using the company as a bargaining chip.
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7- Low demand
Harley-Davidson, on October 27, posted a 9.8 per cent decline in quarterly revenue as demand is yet to see recovery after the coronavirus induced lockdowns.