Key Points :
- Hero MotoCorp on Tuesday announced the distribution agreement with Harley-Davidson for the Indian market through which, Hero will sell and service Harley motorcycles in the nation.
- The company had earlier given a slight hint at exiting some difficult markets as part of its strategic plan, which encompasses pulling out of loss-making markets and focusing on the US, Europe and parts of Asia Pacific.
- The agreement comes with the background of Harley announcing its business reconditioning actions under ‘The Rewire’ plan on September to change its business tactics in India.
India, the world’s largest and most price-sensitive two-wheeler market, struggled with sharp downward spiraling production and sales.Indian production volume fell from 11,753 units in FY16 to 4,533 units in FY20 and sales depleted from 4,708 units to 2,470 units during the same period.Harley-Davidson, the American two wheeler company reported a 9.8% fall in quarterly revenue on Tuesday as global motorcycle demand was yet to reinstate itself from the big slap to business due to the COVID-19 induced lockdowns.
The company had earlier given a slight hint at exiting some difficult markets as part of its strategic plan, which encompasses pulling out of loss-making markets and focusing on the US, Europe and parts of Asia Pacific.Harley-Davidson Motor Co. in September decided to depart from India, its departure putting into focus ,a troubled hold in a remunerative market for two-wheelers.
After 11 years of operations in India, Harley stated about discontinuing its sales and production operations in India as part of a global revamping strategy.
Earlier this year, Pawan Munjal, chairman, Hero MotoCorp also pointed a possibility for a deal with Harley Davidson for manufacturing and selling premium motorcycles in India. And now, Hero MotoCorp on Tuesday announced the distribution agreement with Harley-Davidson for the Indian market through which, Hero will sell and service Harley motocycles in the nation. The agreement comes with the background of Harley announcing its business reconditioning actions under ‘The Rewire’ plan on September to change its business tactics in India.
In a regulatory filing, the Munjal led company stated,”Per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts and 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.
As part of a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.” Further, it added,”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.”
