[CrAzY dRiVeR]

It is official. Harley Davidson will be represented in India by Hero Motocorp. Attaching the press release -

HARLEY-DAVIDSON & HERO MOTOCORP ANNOUNCE AGREEMENTS FOR INDIA MARKET

DELHI, India,
Oct. 27, 2020 (GLOBE NEWSWIRE) --

Embarking on a new journey together, Harley-Davidson, Inc. (“Harley-Davidson”), the legendary motorcycle manufacturer and Hero MotoCorp, the world’s largest maker of motorcycles and scooters in terms of unit volumes, today announced that the two will ride together in India.

Per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell Parts & Accessories and General Merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero MotorCorp’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.

These actions are aligned with Harley-Davidson’s business overhaul, The Rewire, and the company’s announcement in September to change its business model in India.

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp.

• Hero will sell & service Harley Davidson motorcycles and apparel.
• Through HD exclusive network and Hero's own network.
• Hero will develop and sell motorcycles under HD brand-name.

And Harley Davidson thinks this is somehow mutually beneficial.

[Turbanator]

Originally Posted by CrAzY dRiVeR

And Harley Davidson thinks this is somehow mutually beneficial.

Yes, why not? Hero knows our market much better and they can use the technology from Harley to bring lower CC bikes to compete with Honda and others. I won't be surprised if they take over the Harley factory at Manesar as well, maybe they will buy instead of lease. And, they get huge overseas markets for Exports. If TVS can do it for BMW, what stops Hero?

I will say, it's a win-win for everyone and a very good match. I am sure, it will be a success.

[ABHI_1512]

Wonderful news actually, also there are unconfirmed reports that Hero will also develop premium bikes under 500cc under the brand name of Harley Davidson. If that is true, then it will certainly be a mutually beneficial deal. I hope the deal works out, will be a big boost to Hero as well and Harley Davidson getting to keep itself relevant in India no less !

[GTO]

Originally Posted by CrAzY dRiVeR

Hero will sell & service Harley Davidson motorcycles and apparel.

A bit like Maruti selling & servicing Mercedes-Benz cars.

Possible, but will be extremely challenging in the long-term. The 3 C's (culture, company, customers) are as different as chalk & cheese. Hero must handle the brand carefully, sensitively and allocate the right resources to it. Once you are used to selling millions of 2-wheelers, it can get a bit boring to do just a couple of thousand every year. Even Hyundai which is used to high volumes ignores its own pricey products like the Tucson / Sonata because of their low sales.

Will be very interesting to see how this pans out over 5 - 10 years. I'll give it 50 : 50 odds of success. Who knows, maybe Hero will do a "Royal Enfield" out of Harley?? After all, if there is anyone who can give Harley-Davidson some numbers, its Hero.

[CrAzY dRiVeR]

Originally Posted by Turbanator

Yes, why not?

If TVS can do it for BMW, what stops Hero?

Lets check the TVS - BMW arrangement.

1. BMW Motorrad isn't selling bikes in India via TVS management.
2. BMW has nothing to do with TVS network.
2. BMW didn't let TVS develop or sell entry-level motorcycles under the BMW brand name. They handled all the major processes themselves - while utilizing TVS manufacturing economies of scale. They also ensured their bikes are totally different from TVS siblings as well. Except for quality issues with the alternator - BMW completely ensured their brand is not compromised by TVS.

Totally different arrangement.

IMHO - Harley is not only exiting the country - but risking heavy dilution of the brand at the hands of Hero Motocorp. They have shown zero competence in all these tasks - selling high end motorcycles or developing them.

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

[theAutomaniac]

This is brilliant!

This might mean that we might see bigger Hero's and more affordable HDs both with the extensive Hero dealer network.

Despite this, wouldn't all the earlier rumors have instilled doubts regarding the brand's(HD) future operations? I mean, all those rumours can affect the brand's sales adversely!

[Gannu_1]

Received this from one of our WA groups:



Good luck HD. You'll need it.

[GrammarNazi]

C'mon guys, don't cheer this!
This is like Sunil Shetty (Hero) wearing a Tom Cruise mask and making South-Cut Action movies !

If it was Akshay Kumar (Bajaj), then also OK, but Harley Davidson by Hero Hiralal is too much! ROFL.

[jassi_jeeper]

Will Splendour owners now be proud members of HOG! ?Hahahaha!
They should rename the brand Hero-Davidson

[rajushank84]

Oh man. I want to see Hero, Bajaj and RE compete on the global scale and make "Made In India" a thing of pride, rather than import. We need exports, not imports. *sigh*
Fingers crossed, looking forward to RE's new 650 twin cruiser. I will be passing on the Harleys, they are already overpriced even in America. Imported, I am guessing they willbe doubly overpriced.

[amol4184]

Originally Posted by CrAzY dRiVeR

Hero will develop and sell motorcycles under HD brand-name.

Will these motorcycles be entirely new and different from HD portfolio globally? I see the apprehension. I would think twice before putting down monies on Hero developed bike rebranded as HD.
This idea, may be I'm reading wrong - but sounds iffy. Much like I'll be wary of India specific iPhone developed by Vivo just labelled as Apple.

[wheeledwanderer]

Well, I guess corporations never learn. What happened to the JV of Hero Honda? Today Hero is Honda's biggest competitor? Though its good for an Indian company but Harley thinking that its its mutually beneficial is like Trump thinking he will make Mexico pay for the wall in full!

[timuseravan]

Originally Posted by sangam_mm93

Looks like Harley Davidson heard us and it's official

I am greatly looking forward to the Hero HD Super Duper Splendor iSuperSmartz 115+

But seriously I don't have any high hopes from this marriage. Hero has done nothing but squandered all their efforts in the premium motorcycle segment for past 15 years. I dont think anything much has changed. At best the current owners would be assured of some support and people would still be able to buy CBU units.

[veedub89]

Not quite sure how this one will pan out to be honest.
Hero should hire talent outside of its current management to ensure the culture clash does not destroy the brand of Harley. Hero CAN do it properly if they want to.

Harley owners are a passionate lot and need to be treated differently. They may not cringe at the pricing but will definitely cringe at a sub-par user experience. I don't mean any offence to Hero owners; just trying to highlight that the expectations of the customer are different. And these expectations are not something that the Hero dealers or even the management have ever encountered before.

If Hero blows it, then Harley-Davidson might as well be branded as Hardly-A-Davidson in India.

[Arjan]

As someone who has worked closely with Hero MotoCorp as well as a few other Auto OEMs, I can tell you one thing: Do no discount the talent pool & work ethic of Hero. Yes, Hero is an Indian company through & through - if you know what I mean - but its Supply Chain and Sales & Distribution network is extremely strong and second to none.
One should take note that the R&D division of Hero born in 2013 is still in its nascent stage and running decades behind other 2W OEMs, yet still able to produce above average products (Xtreme, Xpulse & many more in pipeline).

Being privy to a couple of failed arrangements that Hero made when it separated from Honda, I know that Pawan Munjal has been eyeing a collaboration with a global OEM from quite some time now and I am sure their team has done extensive due diligence and research to ensure this works. Now whether this arrangement works or not depends entirely on what Hero plans to get out of this - are they merely looking for technology sharing, or are they planning to establish a premium line of motorcycles like the Nexa model - only the future will tell.

I for one am quite happy to hear the news and hope that something good comes out of this collaboration, for both customers and the companies.