MotoCorp develops Harley Davidson bikes for India
India’s leading Automobile Company Hero MotoCorp said, the company has inked an agreement to co-develop and sell a range of premium motorcycles with iconic U.S motor-cycle maker Harley Davidson. This announcement comes a month after Harley Davidson determined to exit the Indian market on account of poor sales.
The company had been selling over 10,000 units per annum during the peak around 2016, but sales had seen decline since then due to increased competition. The maker of premium, cruise-oriented motorbikes faces tight competition from the peers like Triump, KTM and BMW in India. The company has also found it harder to attract users to buy bikes that are priced at Rs 5 lakhs and above.
Hero MotoCorp sits on the other end of the spectrum, gaining nearly all of its sales from bikes priced below the Rs 1 lakh mark. The company is also an ideal partner for Harley Davidson as it has no offering of its own in the 2 lakh plus market. Besides developing new Harley models tuned to the Indian market, Hero MotoCorp will also continue to sell imported Harleys through its extensive dealer networks. It will also sell them through exclusive Harley Davidson showrooms. A Harley branded motorbike priced in the vicinity of Rs 2.5-3.0 lakhs could hit the sweet spot for the category of ‘premium’ bikes in India.
Reacting the development, shares of HeroMoto Corp is trading at Rs3024, up by Rs.112 from the previous closing of on the NSE, during the opening session of trade on Wednesday.