Harley Davidson is back to India. Hero MotoCorp on Tuesday publicized the company’s affiliation with Harley Davidson. The association of both companies is a part of Harley Davidson’s new plan. Will Harley Davidson be able to keep itself afloat in this uncertain time?
Hero MotoCorp to be responsible for Harley Davidson sales in India
After 11 years of operation, Harley Davidson bid goodbye to India last September. The exit is said to be a part of a “global restructuring plan”. A plan that has been hinted since the start of the year, to pull out Harley’s products from some tough markets and shift the focus on the U.S., Europe, and parts of Asia Pacific.
Harley Davidson finally came back to India joining hands with Hero MotoCorp. The agreement itself is a part of Harley’s ‘The Rewire’ plan. Through the plan, Harley Davidson is trying to revamp its business model in India.
Quoted from Mint, Hero MotoCorp’s officials announced that “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,” the company continued.
India two-wheeler market: an outline
Though named as the world’s largest and most price-sensitive two-wheeler market, the sector has been in a slump in India. Mint revealed the Indian production volume in FY20 only reaches 4,533. Quite a long freefall from 11,753 units production in FY16. Furthermore, the sales from the same period also dropped from 4,708 units to only 2,470 units.
Harley Davidson’s condition is not so good either. On Tuesday, the company disclosed a 9.8% fall in quarterly revenue. COVID-19 lockdowns are seemingly still the main reason for a plunge in the global motorcycle demand. Accordingly, the revenue for motorcycles and related product in the third quarter ended last September only reached $964 million. In comparison, the revenue for such products from last year was $1.07 billion.