[payeng]

Source: LiveMint | CNBCTV18

US-based Harley-Davidson Motor Co. is in talks with India’s largest two-wheeler maker, Hero MotoCorp Ltd, to outsource the production of 250-500cc motorcycles that the iconic motorbike maker plans to develop for emerging markets, four people aware of the matter said.

The talks are still at a preliminary stage and both sides are keen to explore a potential alliance that would make Harley-Davidson motorbikes more affordable in India, these people said on condition of anonymity.

Logical I would say. With TVS and Bajaj already in commitment with other brands, Hero MotoCorp is only the one (2 Wheeler giant) left from India.

[srini1785]

Interesting. Hero motors and Harley!. The difference does not get any bigger than this. One , a company that refuses to innovate from its proven 100 c.c clones and the other which refused to change its heavy weight bike manufacturer with a lifestyle image and is paying the price.

Hero , having outpaced it's bigger erstwhile partner (honda) would be cautious since the displacement category is close to its playing field.

[Haroon]

This is surprising news considering the fact that Rider magazine says HD has released a statement saying it has already finalized a manufacturing arrangement for small bikes with Qiangjiang Motorcycle Company in China(the present owners/manufacturers of Benelli brand). Not sure if a separate additional manufacturing collaboration with a Indian company makes sense for a product that is still not sure to make a big impact for a company that has always been iconic for big engined, heavy motorcycles!

https://ridermagazine.com/2019/06/19...ive-new-model/

[CrAzY dRiVeR]

Had the same thoughts last year when the 'More roads to Harley' announcement was made. From here

Originally Posted by CrAzY dRiVeR

Interesting that the new alliance is not just for manufacturing, but also for the distribution of the new entry level motorcycles.

Could they be hinting at a partnership with Hero motorcycles? Bajaj is already tied up with Triumph (and KTM) and the product from the partnership will be a direct rival to this new Harley. TVS has their hands full with their BMW partnership, and going by their safe approach - won't likely jump into another partnership so soon. Mahindra is trying to position their Mojo and Jawa range of motorcycles in this same space - so it is unlikely to be them either.

That leaves Hero Motors as the most likely partner - though it seems like a rather forced one, with both these companies unfamiliar with the 250 - 500cc segment in India.

But, seems highly unlikely now IMHO. Harley has already confirmed the details of the motorcycle and it's Chinese based manufacturer https://www.team-bhp.com/forum/motor...ilt-china.html

Most likely we will have the same imported into the country as CKD units and assembled at Harley's plant in Haryana. Unless - Harley is looking at mass volumes by taking on Royal Enfield directly in pricing, which is highly unlikely as the brand value would also need to be taken into consideration.

[payeng]

A "Small Harley Davidson" sounds more like an Oxymoron

[GTO]

For the backdrop on this story, read the Harley profits thread (Harley-Davidson: Sales down, profits down).

Sales are dropping, profits are falling, average customer age is climbing. Millennials are simply not interested in Harley-Davidson's culture, steep price tag or cruiser motorcycles.

Through such tie-ups (and the Chinese one reported on another thread), I hope Harley is able to maintain its brand's core values (Why car companies shouldn't move away from their core values).

Harley should also study other success stories; example, Porsche which has successfully expanded well beyond sports cars and still maintained the prestige & allure around the marque. No one smirks at a Cayenne Turbo today.

Big win for Hero if this goes through . An unlikely partner though. It's like Maserati tying up with Maruti to produce small cars.

[tchsvy]

"Harley Davidson, they don't sell a bike, they sell a life style" this used to be the opening line of professors who used take classes on social branding and brand loyalty, now that the lifestyle itself is on the decline, Harley is looking for other ways to survive. They might know that they are losing their core values, but they need to survive, hence this move. 'The Rebels' and seekers of 'open roads' are in their 60s now, the young generation isn't interested in this costly lifestyle and they don't have that much time to dedicate to their bikes and towards this biking lifestyle.

To survive, H-D is willing to be one more player in the market now, that's something that most hardcore Harley fans will not be able to digest.