Harley-Davidson Inc is in talks with India’s Hero MotoCorp for distribution deals which will allow the US firm’s motorcycles to be sold in India, after its local manufacturing and distribution were stopped.
The Milwaukee-based company said it will stop sales and shut its manufacturing plant in India, effectively abandoning the world’s biggest motorcycle market. Harley however is in talks with Hero MotoCorp to enter into a distribution arrangement which will allow the Indian company to import and sell Harley bikes as its sole distributor.
“Hero will be the master distributor for Harley bikes in India … This will be a partnership, a strategic alliance,” said a source. Discussions are also ongoing to let Hero become a contract manufacturer for at least one Harley motorcycle with 300-600 cc engine capacity, which it will launch later.
Asked about talks with Hero, a Harley spokeswoman said the company can’t comment on “rumors or speculation”. It said it was “changing its business model in India & evaluating options to continue to serve customers. “Hero MotoCorp, which is the India’s largest two-wheeler manufacturer by sales, said it doesn’t comment on market speculation. It produced 6.4 million two-wheeler scooters and motorcycle, a third of India’s total output.”
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