Harley makes India comeback, inks distribution agreement with Hero MotoCorp

Hero MotoCorp on Tuesday announced a distribution agreement with Harley-Davidson for the Indian market via which, Hero will sell and service Harley motorcycles in the country.

As per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles and sell parts and accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’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.

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.

Earlier this year, Pawan Munjal, chairman, Hero MotoCorp also indicated a deal with Harley Davidson for manufacturing and selling premium motorcycles in India. Harley-Davidson Motor Co. in September decided to exit India, its departure dropping the curtain on a troubled stint in a lucrative market for two-wheelers. The company had earlier hinted at exiting some tough markets as part of its strategic plan, which entails pulling out of loss-making markets and focusing on the US, Europe, and parts of Asia Pacific.

Meanwhile, Harley-Davidson reported a 9.8% fall in quarterly revenue on Tuesday as global motorcycle demand was yet to recover from the hit to business from the COVID-19 induced lockdowns. Motorcycles and related product revenue fell to $964 million in the third quarter ended Sept. 30 from $1.07 billion a year earlier. So this decision is mutually beneficial for both the companies in such a pandemic situation.