[Stribog]

IF Hero Harley can come up with a few 2.5-4l ex showroom priced bikes and uses a portion of its vast network to sell these, India might just be one of HD's largest markets by volume and revenue after the USA.

While a lot of these mergers, tie ups don't have synergy in my books (Toyota Maruti for instance), I see some solid synergies here, what Harley lacked (presence and scale in India) Hero provides and what Hero lacked / lacks in making any bike over 2l and selling it well (also a massive image problem like Maruti) Harley makes up for it.

Also unlike say a Toyota or even Ford, Harley has NO steam left in India and rather than fully exit what is and will be one of the fastest growing auto markets in the coming decades, this makes sense.

I give it a 75-25 chance of thriving, but then if Hero Hiralal goes decidedly downmarket with even the HOG, then it is just going to collapse.

Let us wait and watch, I for one am at least excited to see the first product that will come out of this hybrid stable.

Still think that the abomination called Kawasaki India takes the price for worst OEM here. Their latest plans just add to this thought of mine.

[SnS_12]

Originally Posted by CrAzY dRiVeR

Of course - there is a small chance that Hero can prove me wrong, but that would be a welcome scenario indeed!

The biggest question will be can HD help Hero develop smaller engines which are refined, efficient and reliable just like Honda did to create the brand Hero Honda?

[CrAzY dRiVeR]

One point I failed to notice earlier - there is no mention of the closed Harley Davidson plant where the Street 750 was manufactured. And some media reports confirm that Hero is not taking over that plant.

Looks like the surviving HD models in India will only be the CBU bikes - sold and serviced by Hero. Street range will mostly be discontinued, since it won't make sense if imported IMHO. And Harley exited 40+ entry level markets where the Street was exported from India.

Originally Posted by SnS_12

The biggest question will be can HD help Hero develop smaller engines which are refined, efficient and reliable just like Honda did to create the brand Hero Honda?

There is no technology transfer involved from Harley Davidson to Hero.

Originally Posted by amol4184

Will these motorcycles be entirely new and different from HD portfolio globally?

Yes. The bikes will be developed by Hero and sold under the Harley Davidson brand name.

[Turbanator]

I won't discount Hero just because they sell cheaper products. If I recollect correctly, they were the first ones to import BMW Bikes a decade back unless I am confusing and mistaken.

Here are some of the old interviews and comments. This guy is a totally dedicated and knows much better than most of us. Something like this was brewing for a while. Let's leave the nitty-gritty to professionals. As a consumer and an Indian, I will be very happy if we can produce, consume & export world class products.

https://www.businesstoday.in/sectors...ry/199033.html

https://www.hindustantimes.com/busin...HTJj377sN.html

https://auto.economictimes.indiatime...risis/75686423

https://timesofindia.indiatimes.com/...w/74200320.cms

[Cessna182]

The challenge with such an arrangement would be fixing the responsibility for repairs. Since these are CBU bikes, spares would be difficult to source and if there is a complex repair then the Hero service center might not be able to do so.

[car love]

Apart from all this, there is a good risk of Harley Davidson itself collapsing. Their core base is dying out dramatically in the West and more seriously the brand is beginning to be un-cool in many parts of the world. Culture and perception threats are much more serious.
Moreover among Harley community, the entry point is atleast an 883. In their communities people with Street 750 were treated as outcasts. So anything smaller will be terrible.
Dont know how this will all eventually play out but having too rich a history can infact be a hindrance.

[sgmuser]

Caring for the customer (when they are present in the market) itself is a rare phenomenon in Indian consumer space with some miniscule exceptions. Imagine you are customer for a long gone from India company like HD. At least HD covered its back in this case, kind of. They managed to get a big name for so called support. The customers will only blame Hero for everything that is going to happen now onwards which are not going to be pleasant for sure.

Is there any FIPB/investment regulator mandated policy on these kind of companies who simply just shut shop and run without thinking much about their customers who put their hard earned money on their products? At least, on after sales support guarantee/spare parts availability for certain years (10 years for e.g.). How many companies ran in the last few years and did not care much of what is going to happen for those customers who believed them as a company and as well their products. It is simply unfair for the customers who are taken for a ride.

[Yieldway17]

I’m not a fan of Hero but I don’t think Hero and its management and people are incompetent as many in this thread are portraying them to be. I hope they will have a sound strategy to leverage HD brand name and their know-how to build and sell good motorcycles.

Harley Davidson is an old school dying brand, premium or not. Because they sell high priced motorcycles, doesn’t mean Hero is too beneath them. Most in this thread are being snobbish when it’s the old world royalty who is getting evicted from the castle.

[SmartCat]

This is apparently logo of the new venture

[KSTejaswi]

I've worked at Hero R&D, and can confidently say that the in-house team does have the capability to design and develop good products, and hasn't shied away from hiring knowledgeable folks where their own expertise wasn't enough. Hero's low-cost manufacturing prowess and excellent supply chain is no laughing matter. Even if Hero continues to use Honda's (adapted) quality standards, anyone who works in QC can understand that maintaining quality is an entirely different ballgame, while churning out over 7.5 lakh bikes a month even as one develops (slightly) new products. There were many who predicted Hero's doom when they split up with Honda, but the sales figures and product upgrades (& a few launches) demonstrate otherwise.

The key, in my humble opinion, is the kind of focus, drive & strategy the top management shows - that will decide whether the HD brand survives, grows to greater heights or dies a miserable death.

[maddy42]

Good news here. My classmate was in their marketing team and did share the news. Good news for the existing owners to say the least, as there is some support available.

Hero is pretty capable to handle this and all the best to the team. During the lockdown also they did manage to comeback strong unlike a competitor who huffed and puffed about science and the lockdown but is seeing a negative YOY sales number.

Hero has some pretty capable products in their portfolio now and hopefully they do learn the correct things from HD and not copy the same mistakes done by HD.

Lastly HD owners clubs are to be blamed a little for the gutter the company is in. Instead of promoting future riders and welcoming newbies with a Street 750 in the group they treated them as a outcast. Now a 100 cc maker is your baby's daddy.

Maddy

[DrCar]

This is what will happen few years down the line :
- Harley and Hero will divorce.

- Hero will get the right to keep using the technology derived from Harley even few years after they are separated. Similar to how they were using Honda derived 100cc and 150cc engines.

- Hero will add a vertical engine on its already designed horizontal 100cc engines on their bread and butter models like Splendor and Passion and launch a Vtwin version of the same.

-The roads will become hell once these Splendor and Passion with these 200cc V twin engines scorch our streets.

On a side note, I feel Harley wants to try one last time before exiting India. Hero is very slow and conservative with their approach. Even if they plan to use Harley technologies in future models, it will take them years to get the prototype ready and another few years to launch them.

By that time, Harley will lose lots of time and competition like Royal Enfield, Honda, Suzuki and Kawasaki might have already captured the market.

Even Harley is conservative with its approach. It took them years to realise that they need to try something innovative. But they just latched on to their yesteryears legacy for too long. Partnering another conservative manufacturer like Hero might take them nowhere I feel.

But I am keeping my fingers crossed and want both of them to do well. Both should be aggressive and learn something from Kia which was nowhere in sight 2 years back.

[sgmuser]

Originally Posted by SmartCat

This is apparently logo of the new venture

Attachment 2072893

Is it really the logo?

Or some smart Photoshop skill at work? I will not be surprised though, but still, a legendary automobile company with such a crazy & hard core fan following all the world, would not dare to even think of altering the logo. These fans (at least in US) very conservative in nature and might simply hate to see an Indian link in a HD!

[architect_santo]

I'm not into business management or what so ever, but I feel that Harley could have done this JV first to exhibit their commitment to Indian market. Then could have followed up their exit strategy, easily stating that their existing agreement will take care of existing and potential customers. American corporate's look at all as numbers is it?

I also hope Hero narrows down the dealers and service centers who sells and service the Harley (just like Honda trying to strength the Big Wing even with the CB250); else it might be a joke to see Harley in wrong hands and at random places.

[bf1983]

https://auto.economictimes.indiatime...lurch/78992261

Looks like many dealers will have to close after the bread and butter Harleys have stopped production. Not sure if Hero can get rights to up the Harley factory and continue churning out Street 750 and Street rod 750 or many smaller Harley showrooms will have to shut.