The American motorcycle manufacturing company Harley-Davidson decides to exit India. It may have left many of its dealers fuming. The company signed an agreement with Hero MotoCorp which will enable the Indian two-wheeler-maker to develop and sell a range of premium motorcycles under the Harley-Davidson brand name in the country.
Harley-Davidson India on Saturday reaffirmed its commitment to its riders despite its decision to pack up. The company entered Indian shores more than a decade ago. India accounted for 5% of global sales for the American company. Covid-19-related factors further complicated troubles all over the world and as part of its 'Rewire' strategy, it announced it is ending sales and manufacturing operations here. However, this doesn't mean that prospective buyers won't have a chance to ride a Harley. Sajeev Rajasekharan, Managing Director – Asia Emerging Markets & India, Harley-Davidson says, "As we change our business model in India, we are pleased to be continuing our journey in the country together with Hero MotoCorp. We are working closely with Hero to ensure a smooth transition for our riders." Hero MotoCorp will now also sell Harley accessories and general merchandise, riding gear, and apparel through a network of brand-exclusive Harley-Davidson dealers and its existing sales network in the country.
The company has also announced a premium package of 1,500 per sq. ft. with a 10% annual value-depreciated rate and a 6-month reimbursement of the margins of sale.