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 bikemaker's existing dealership network across the country.
According to the licensing agreement, New Delhi-based company will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.
"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.
It 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".
In 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.
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.
Harley-Davidson today posted a 9.8 per cent decline in quarterly revenue as demand is yet to see recovery after the coronavirus induced lockdowns.
Meanwhile, shares of Hero MotoCorp ended the intraday trade today at Rs 2,914.95, up 17 points, or 0.59 per cent on NSE.