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Hero MotoCorp to sell, service Harley-Davidson motorcycles in India

As per a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

October 27, 2020 / 04:57 PM IST

Hero MotoCorp will sell and service Harley-Davidson motorcycles in India, the Indian bikemaker said in a release to the exchange on October 27.

Hero MotoCorp will also sell parts and accessories and general merchandise such as riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in the country.

As per 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," the companies said in the exchange filing.

In September, Harley Davidson called it quits in India. The iconic American cruiser, which was targeting annual sales of 10,000 units, struggled to sell even a quarter of that in FY20, even after US President Donald Trump persuaded the Indian government to cut taxes.

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One of the reasons which may have led to its exit was the lack of a clear demand outlook. The Covid-19 disruption has pushed back India’s two-wheeler demand by 2-3 years.

Rating agency ICRA in August, revised downwards sales forecast for two-wheelers in India, expecting it to decline by 16-18 percent to around 1.7 crore units in FY2021.
Moneycontrol News
first published: Oct 27, 2020 04:44 pm
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