Harley-Davidson Inc is engaged in advanced discussions with India's Hero MotoCorp in an arrangement to export the US company's legendary motorcycles to be sold in India after the company ends local production, three sources said.
We got the shocking news of Harley Davidson, a motorcycle giant who is leaving India, few days ago. The company hasn't improved sales in India and has put this difficult decision on the bike manufacturer. The company closed all its production and distribution activities in India after a decade of ineffective revenues.
Harley is in talks with Hero, however, about a distribution agreement which will permit the Indian company to import and sell Harley bikes as its sole distributor."Hero will be the master distributor for Harley bikes in India ... This will be a partnership, a strategic alliance".
It has also continued to discuss whether to turn Hero into a contract manufacturer for at least a 300-600 cc Harley motorcycle, which will launch later, added the first source. There were no immediate financial information on the arrangement. When a Harley spokeswoman asked about discussions with Hero, she replied that "rumours or speculation" could not be addressed. On Thursday, he said "changed his business model in India and evaluated options for serving customers."
Hero MotoCorp, India's biggest sales-based two-wheeler maker. In the financial year ending March 2020, India manufactured 6.4 million scooters and motorcycles, a third of its total production. During this time Harley made only 4,500 motorcycles, mostly assembled from imported knock-down kits, which are now to be shuts down in its announced restructuring facility near New Delhi.
Harley could pursue the business in India with a significantly lower cost structure than before if the deal materialises. Harley Davidson is currently evaluating options for its existing customers to continue offering maintenance and spare parts. Reports suggest that within 2 weeks, an official announcement could be made.The Street 750 was the US bike manufacturer's most famous bike. Harley Davidson is the new vehicle of automakers to leave India. Some others are General, Fiat, MAN and Scania.
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