Hero MotoCorp Ltd shares surged more than 3 percent in early trade on July 4 after its partnership with Harley Davidson helped it enter the 440cc segment where it had no presence so far.
At 10am, Hero MotoCorp was trading at Rs 2,996, up 3.6 percent from the previous day's close. In the last six months, the stock has given an 11 percent return.
Harley Davidson unveiled the X440, a premium motorcycle developed in collaboration with Hero MotoCorp. This marks the entry of both Hero MotoCorp and Harley Davidson into the 440cc segment for the first time in India. It boasts a single-cylinder, oil and air-cooled engine with a displacement of 440cc. The X440 is the inaugural premium motorcycle introduced as part of the licensing agreement between the two companies.
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Analysts at Motilal Oswal Financial Services are upbeat on this co-developed model and believe that the pricing tag of Rs 230,000 is very aggressive. Two-wheeler (2W) demand recovery in the domestic market is expected to sustain on a low base, led by a healthy rebound in the urban market and a gradual regaining of the rural market.
Broking firm Nomura said that Harley X440 was launched at a very attractive pricing. Additionally, the launch will be crucial to Hero MotoCorp's premiumisation journey. Hero MotoCorp will also save on tariffs since the vehicle will be manufactured in India.
"The launch of the Harley Davidson X440 is a significant milestone in our premium journey and lays a strong foundation for our future growth," Hero MotoCorp Chairman Pawan Munjal said.
"Harley was always clear that it will not leave the Indian market and has returned with a product it could not have developed on its own," said Jochen Zeitz, CEO, Harley Davidson. "We want to see the success of the launch."
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