Harley-Davidson To Team Up With Hero MotoCorp For India Operations?

The brand is looking to scale down operations in India as a part of “The Rewire” strategy

Harley-Davidson has been reeling from poor market performance globally and is now looking to focus on key developed markets where demand is healthy. As a part of this strategy, the company is looking for a strong and credible local partner instead of continuing solo. In February, Hero MotoCorp revealed that it was open to such partnerships as it is a win-win situation for everyone.

Harley-Davidson has been suffering from poor sales globally, and the brand recently announced a new strategy called ‘The Rewire’ to help it tap into select developed markets where the demand is high. Now with the coronavirus pandemic impacting economies globally, it has become tough for the American bikemaker to sustain its operations in India amidst the weak demand. This has forced the company to contemplate scaling down its operations here. If the situation worsens, it might even shut down its manufacturing plant in Bawal, Haryana. So instead of continuing solo, the brand is reportedly looking for a “strong, credible local partner” for its business in India.

Recent reports suggest that the American brand could choose Hero MotoCorp as its partner for the sub-continent. After all, Hero’s Managing Director and CEO Pawan Munjal has already stated that the brand is open to partnerships, saying, “The sooner it happens, it’s good for everyone”.

According to a media house, Hero MotoCorp might realise Harley’s plans of producing mid-capacity premium motorcycles here. Moreover, with the volatile situation between India and China, it could bode well for Harley to partner with a stronger local brand here. The American bikemaker had earlier teamed up with Benelli’s parent company QJ Motor for its premium bike in the 300cc segment, but even its future seems to be uncertain. 

Harley-Davidson has reportedly discussed the possibility of a partnership with Bajaj Auto and Mahindra & Mahindra. However, Bajaj already has its hands full with its partnership with KTM, Husqvarna and Triumph. On the other hand, Mahindra too is yet to become an established two-wheeler manufacturer. That said, both Mahindra and Bajaj had no comments regarding the development.

Hero MotoCorp could benefit from gaining the technical know-how to enter larger capacity segments with its partnership with Harley-Davidson. Its rivals like Bajaj and TVS have already partnered with international brands to explore newer territories and it is high time Hero MotoCorp also jumped into the bandwagon. The partnership is still some time away, so expect more details in due course. Do let us know what you think of the possible partnership between Harley-Davidson and hero MotoCorp in the comments below. 

Source