On Tuesday, Hero MotoCorp on Tuesday declared a distribution agreement with Harley-Davidson for the Indian market where Hero will sell and service Harley motorcycles in the country. It will also be selling parts, merchandise, riding gears and apparel via a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership chain in India. According to the Licensing agreement, Hero MotoCorp will produce and sell an assortment of premium motorcycles under the Harley-Davidson brand name, as said by the Pawan Munjal-led company in a regulatory filing on October 27th.
The contract originates under the label of Harley stating its business overhaul steps under ‘The Rewire’ project in September to revamp its business model in India.
Pawan Munjal, chairman, Hero MotoCorp earlier this year indicated an agreement with Harley Davidson for manufacturing and retailing premium motorcycles in India.
Harley-Davidson in September had chosen to exit India, its departure releasing the curtain on a shaky stint in a lucrative market for two-wheelers.
After operating in India for about 11 years, Harley said that it is going to discontinue its sales as well as production in India as a part of a global restructuring strategy. The brand had briefly indicated at exiting some challenging markets as part of its imperative plan, which involves pulling out of loss-making markets and converging on the US, Europe and different parts of Asia Pacific.
This agreement is reciprocally advantageous for both businesses and motorists in India, as it brings the iconic Harley-Davidson brand collectively with a robust distribution network and customer service of Hero MotoCorp.
In India, the world’s largest as well as the most price-sensitive two-wheeler market, it grappled with distinctly diminishing production and sales. Meanwhile, Harley-Davidson recorded a 9.8% fall in periodical revenue on October 27th as global motorcycle trade was but to recuperate from the hit to business from the coronavirus pandemic induced lockdowns.