Hero MotoCorp Inks Deal With Harley-Davidson To Develop Premium Motorcycles
Harley-Davidson and Hero MotoCorp will collaborate together to develop premium motorcycles in India, which could help them dominate the domestic market.
India’s top two-wheeler creators, Hero MotoCorp have now cracked a deal with Harley-Davidson, Inc. motorcycles. Under a licensing and distribution agreement, the New-Delhi based company will now develop, sell and also service Harley motorcycles in India. While reports about the American company Harley-Davidson to discontinue its sales and manufacturing in India prevailed back in September, now this deal has brought immense joy to revheads.
Both the companies detailed their collaboration in a statement that said, “As 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.”
For Hero Motocorp, this deal can prove to be a boon as it can significantly dominate the domestic market for mid-sized motorcycles. Both the companies are hoping that this expansion will increase the demand in Indian markets for premium motorcycles. It was just last month when Harley-Davidson announced that is planning to shut its sole factory in India which is located at Haryana.
The decision was announced citing shrinks in sales operations. The company also expressed its concern over high taxes on import which indirectly made the cost of the products high leaving customers discouraged. Now, with this new deal, both the companies plan to give a tough competition in the automobile sector.
What is in store for all potential buyers after the new tie-up?
This new deal enables Hero MotoCorp to develop premium motorcycles under the Harley-Davidson brand name. The firm gets the entire control over its service and part requirements for the newly developed bikes. Hero MotoCorp will even sell Harley-Davidson’s accessories and general merchandise like apparel, riding gear through Harley’s existing sales network in India.
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