Harley-Davidson created ripples earlier this year after announcing its plan to exit the Indian market and shut down its manufacturing facility in Haryana. The American motorcycle giant has now announced that it has joined hands with Hero MotoCorp. Under the new Rewire strategy, Hero MotoCorp will Harley-Davidson will also work to launch new products in the markets.
The fine details are not known yet. However, Hero MotoCorp will now sell and provide all the after-sales support to the Harley-Davidson motorcycles in India. The details do not reveal if Hero MotoCorp will also absorb the existing Harley-Davidson dealerships spread across the country. Hero MotoCorp will also sell Harley-Davidson branded apparels, accessories and aftermarket parts for its motorcycles.
Hero MotoCorp also says that it will open new exclusive dealerships to Harley-Davidson motorcycles. It is not known if the existing Hero dealerships will sell the Harley-Davidson motorcycles or if the existing dealerships of Harley-Davidson will keep on operating.
Hero will also develop new motorcycles, which are likely to be small capacity bikes. However, details are not known. It is likely that Hero MotoCorp and Harley-Davidson will together work to develop new motorcycles to replace Street 750 and many other affordable motorcycles to penetrate the low-cost markets around the world. However, there is no information on this development. It is likely that Hero MotoCorp and Harley-Davidson will take a few years before the arrival of the first co-developed products in the Indian market.
It is an interesting development and is likely to spawn a slew of new products in the Indian market. In the past TVS and BMW joined hands and we have already seen products like Apache RR310, BMW G 310 twins coming out of the partnership. More such products are expected to be launched by both these manufacturers. Even Bajaj and Triumph have joined hands for the Indian market and new products are expected to be launched very soon. Similarly, Bajaj and KTM partnership has already given us numerous products that are available in the Indian market.
The exact strategy of Hero and Harley-Davidson is expected to be revealed in the coming weeks. It is likely that Hero MotoCorp and Harley-Davidson’s co-developed motorcycle will be launched to target entry-level customers. Hero MotoCorp is the world’s best-selling brand when it comes to two-wheelers and they already have a massive presence in developing countries too. Hero has also invested millions on its R&D Centre in Jaipur which is likely to play an integral role in the partnership.