A decade after selling its premium motorcycles in the Indian market Harley-Davidson in September announced that the brand will no longer continue business in India but focus on the activities in larger markets outside of India. The brand also announced that it will be shutting down the Bawal manufacturing facility in Haryana and considerably reduce the sale office in Gurugram.
Furthermore, the American manufacturer dropped another bomb that the company will be partnering with New-Delhi-based Hero MotoCorp, the World’s largest two-wheeler manufacturer to enable a smooth transition of its existing customers. The brand also announced that Hero MotoCorp will take on the responsibilities of sales, service, spares, accessories, warranty, merchandise and H.O.G activities from January 2021.
According to media reports, the brand has also confirmed that the strategic Indian partner will develop and produce Harley-Davidson motorcycles in the Indian market. Which leads us to believe that though Harley-Davidson motorcycles will still be available in India they will be produced by Hero MotoCorp. Furthermore, the brand is also likely to develop smaller capacity motorcycles specifically for the Indian market as well as for exports into the emerging market outside of India.
Reports suggest that Hero MotoCorp will not only strengthen its premium motorcycle range but also create a full portfolio of premium segment motorcycles across various engine capacities. The partnership with Harley-Davidson will help the brand accelerate the premium segment strategy. Currently, the brand only has the Xtreme 160R and the Xpulse 200 in the premium motorcycle portfolio.
Nevertheless, Harley-Davidson dealers were not happy with the situation and saw themselves in hot waters when only 10 dealers out of 33 were absorbed by the new partner. The 23 dealer partners which have been held off are likely to knock the courtrooms for proper compensation, as they are left with uncertainty.
The dealers are also likely to hold a press conference with the Federation of Automobile Dealers Association of India (FADA) soon, to discuss the situation.