Hero MotoCorp and Harley-Davidson discuss expansion in India
Hero MotoCorp and Harley-Davidson are reportedly discussing plans to expand their partnership in India. This move is a response to the successful reception of the X-440 model. The potential expansion could include manufacturing Harley-Davidson models for export. The companies are close to finalizing an agreement that would broaden their current collaboration, which is limited to the X-440 model. An official announcement is expected within weeks, as per the Economic Times.
X-440 range is currently produced at Hero's Neemrana facility
The premium motorcycle market in India is experiencing growth, and Harley-Davidson executives have expressed satisfaction with their joint venture with Hero MotoCorp. The X-440 range is currently produced at Hero's Neemrana facility in Rajasthan, India. In October 2020, a licensing agreement was signed between Milwaukee-based Harley-Davidson and Hero MotoCorp, granting the latter the right to manufacture the X-440 model in India.
Hero MotoCorp's role in Harley-Davidson's India operations
Under a distribution agreement, Hero MotoCorp has the rights to sell and service motorcycles, as well as sell parts and accessories through a network of exclusive Harley Davidson dealers. This also includes Hero MotoCorp's existing dealership network in India. This agreement followed Harley-Davidson's previous cessation of manufacturing operations in India due to poor demand and sales, largely attributed to high import tariffs.
Hero MotoCorp's success with X-440 and Mavrick models
Hero MotoCorp also markets its own variant of the X-440 under the Mavrick brand. In the last financial year, Hero sold 14,837 units of these two models - X-440 and Mavrick. This makes it India's third-largest seller of motorcycles in the premium segment with engine capacity greater than 350cc and lower than 500cc, following Bajaj Auto and Royal Enfield.
Hero MotoCorp increases production amid growing demand
In response to strong demand from Indian consumers for the motorcycles co-developed on the 440cc platform with Harley, Hero increased production capacity of these products to 10,000 units per month in March, up from 6,000 units in January. "The market for roadsters is 800,000 units, and is growing," said Niranjan Gupta, CEO of Hero MotoCorp. "It should touch a million units in the next couple of years. The potential (in the segment) is huge."
