Harley-Davidson has made a significant move to solidify its foothold in India by partnering with Hero MotoCorp. This strategic alliance aims to tackle previous challenges faced by Harley-Davidson, such as steep import costs and sluggish sales. Between FY16 and FY20, production numbers declined from 11,753 to 4,533 units, while sales dropped from 4,708 to 2,470 units. Over the past decade, Harley-Davidson managed to sell only 27,000 motorcycles in India, lagging behind competitors like Royal Enfield.
With the Indian market evolving due to increasing disposable incomes and a growing demand for premium motorcycles, local manufacturing at the Harley-Davidson factory in India has made these iconic bikes more accessible. This collaboration ensures premium quality motorcycles at competitive prices, marking a new chapter for Harley-Davidson in the Indian market.
Key Takeaways
Harley-Davidson teamed up with Hero MotoCorp to cut costs and boost sales in India, solving issues like high taxes on imports.
Building bikes locally at the Harley-Davidson factory in India has made fancy motorcycles cheaper, so more people can think about buying them.
The Harley-Davidson X440, made with Hero MotoCorp, shows how luxury can be affordable, with great features at good prices.
Hero MotoCorp’s big dealership network makes it easier for Harley-Davidson owners in India to get bikes and support after buying.
Plans for the future include adding more X440 models and making new bikes, giving Indian buyers more choices.
The Collaboration Between Harley-Davidson and Hero MotoCorp
Why Harley-Davidson Partnered with Hero MotoCorp
Challenges Harley-Davidson faced in the Indian market, including high import costs and limited market penetration.
You may already know that Harley-Davidson struggled to establish a strong presence in the Indian market. High import duties made their motorcycles expensive, limiting their appeal to a niche audience. Additionally, Harley-Davidson faced challenges in reaching a broader customer base due to a limited dealership network. These factors contributed to declining sales and production numbers over the years. To overcome these hurdles, Harley-Davidson needed a partner with local expertise and resources.
Hero MotoCorp’s local expertise, extensive dealership network, and understanding of Indian consumer preferences.
Hero MotoCorp emerged as the ideal partner for Harley-Davidson. With its extensive dealership network and deep understanding of the Indian market, Hero MotoCorp could help Harley-Davidson reach a wider audience. Hero’s manufacturing capabilities also allowed for local production, reducing costs and making Harley-Davidson motorcycles more affordable. This partnership with Harley enabled the co-development of products tailored to Indian consumers, addressing the growing demand for premium motorcycles.
“And (there is) a lot of upside with much greater manufacturing capability that Hero brings in and the willingness to invest into the business, to really build us up as a brand.”
Key Details of the Partnership
Licensing agreement allowing Hero MotoCorp to manufacture Harley-Davidson motorcycles locally.
The licensing agreement between the two companies allows Hero MotoCorp to manufacture and market Harley-Davidson motorcycles in India. This agreement gives Hero access to Harley-Davidson’s technology and manufacturing expertise. By producing motorcycles locally, Hero MotoCorp can avoid high customs duties, making the bikes more competitively priced.
Expansion of distribution and service networks to improve accessibility.
Hero MotoCorp’s dealership network plays a crucial role in this partnership. You can now find Harley-Davidson motorcycles and services more easily across India. Hero’s established network ensures better after-sales support, enhancing the ownership experience for Harley-Davidson customers. This expanded reach makes the partnership mutually beneficial, strengthening Harley-Davidson’s position in the Indian market.
Harley-Davidson Factory in India
Role of the Factory
Local production to reduce import duties and manufacturing costs.
The Harley-Davidson factory in India plays a crucial role in making premium motorcycles more accessible. By producing bikes locally, the factory eliminates the need for importing fully assembled motorcycles. This approach significantly reduces import duties, which previously made Harley-Davidson motorcycles almost double the price compared to the United States. The factory uses Complete Knockdown (CKD) kits for assembly, further lowering costs. This strategy ensures that you can enjoy the same iconic Harley-Davidson experience at a more affordable price.
Ensuring a consistent supply of motorcycles to meet growing demand.
The factory also ensures a steady supply of motorcycles to meet the increasing demand in India. With the growing popularity of premium bikes, the local manufacturing facility allows Harley-Davidson to produce motorcycles efficiently and in larger quantities. This consistent supply means you no longer have to wait long periods to own a Harley-Davidson bike. The collaboration with Hero MotoCorp ensures that production aligns with market needs, keeping up with the expectations of Indian consumers.
Impact on Pricing
How local manufacturing has made Harley-Davidson bikes more competitively priced in India.
Local manufacturing has transformed the pricing of Harley-Davidson motorcycles in India. Previously, high import tariffs and taxes made these bikes prohibitively expensive for many enthusiasts. The establishment of the Harley-Davidson factory in India has changed this scenario. By assembling motorcycles locally, the company has reduced costs, making their bikes more competitively priced. This shift allows you to consider owning a Harley-Davidson without stretching your budget excessively.
The affordability of models like the Harley-Davidson X440 compared to imported counterparts.
The Harley-Davidson X440 stands out as a prime example of affordability achieved through local production. Developed in collaboration with Hero MotoCorp, this model caters specifically to the Indian market. Its price point is significantly lower than imported Harley-Davidson models, making it an attractive option for you. Despite its affordability, the X440 maintains the premium quality and performance that Harley-Davidson is known for. This balance of cost and quality makes the X440 a game-changer in the premium motorcycle segment.
Affordable Luxury Bikes in India
What ‘Affordable Luxury’ Means in the Indian Context
Balancing Harley-Davidson’s premium branding with pricing that appeals to Indian consumers.
Harley-Davidson has successfully redefined what “affordable luxury” means in India. The brand has maintained its premium image while making its motorcycles more accessible to a broader audience. This balance was achieved by focusing on local production and strategic pricing.
“This allows us to hone in locally – if we had positioned ourselves strictly based on our initial price point as a luxury product, we would have failed – because it’s not in our DNA. Instead, we had to find the balance between being premium, while being accessible.”
By assembling motorcycles locally using Complete Knockdown (CKD) kits, Harley-Davidson has significantly reduced import duties. This strategy has lowered retail prices, making premium motorcycles more affordable for Indian consumers.
“One of the key strategies toward greater accessibility was the establishment of assembly operations, allowing us to assemble motorcycles from Complete Knockdown (CKD) kits imported from our US plants, thus lowering the import tariff and ultimately the retail price.”
Offering high-quality motorcycles at price points accessible to a broader audience.
Harley-Davidson’s collaboration with Hero MotoCorp has played a pivotal role in offering high-quality motorcycles at competitive prices. Co-developed with Hero MotoCorp, the Harley-Davidson X440 is a prime example of this approach. This model combines Harley-Davidson’s iconic design and performance with Hero MotoCorp’s understanding of the Indian market, ensuring it appeals to a wider audience.
Models and Pricing
Overview of the Harley-Davidson X440 and its variants developed with Hero MotoCorp.
The Harley-Davidson X440, co-developed with Hero MotoCorp, is available in three variants: Denim, Vivid, and S. Each variant offers unique features and caters to different preferences.
Variant | Price (ex-showroom) | Key Features |
|---|---|---|
X440 Denim | LED headlamp, dual-channel ABS, USB charging port, 3.5-inch TFT display, wire-spoke wheels | |
X440 Vivid | Rs 2.49 lakh | Multi-spoke alloy wheels, dual-tone color options, same features as Denim |
X440 S | Rs 2.69 lakh | Premium features, 3D badges, diamond-cut alloy wheels, smartphone connectivity, Matte Black livery |
These variants ensure that you can choose a model that fits your budget and preferences without compromising on quality.
Comparison of Indian pricing with global markets, highlighting affordability.
The pricing of Harley-Davidson motorcycles in India has become more competitive compared to global markets. For instance:
The entry-level Harley-Davidson motorcycle in India is priced around 7 lakh INR due to high import duties and taxes.
In the US, the same model costs approximately $7,000 (around 3.5 lakh INR before taxes).
This significant markup in India was primarily due to import duties exceeding 100%. However, local manufacturing has helped reduce these costs, making models like the Harley-Davidson X440 more affordable for Indian consumers.
Market Impact and Future Prospects
How the Collaboration Benefits Indian Consumers
Improved accessibility through local manufacturing and expanded dealership networks.
The partnership between Harley-Davidson and Hero MotoCorp has significantly improved accessibility for Indian consumers. Local manufacturing has reduced costs, allowing you to purchase premium motorcycles at more affordable prices. For instance, Harley-Davidson bikes now start at ₹2.3 lakh, making them more accessible than ever before. Hero MotoCorp’s extensive dealership network ensures that you can find Harley-Davidson motorcycles and services in more locations across India.
Hero MotoCorp uses its vast network to sell and service Harley-Davidson motorcycles, including completely built-up (CBU) units. This approach enhances consumer access to these premium bikes.
Additionally, Hero MotoCorp’s infrastructure helps navigate legal compliance and adapt to local market needs, ensuring a seamless experience for you as a buyer.
Enhanced service and support for Harley-Davidson owners in India.
The collaboration has also improved after-sales service and support. Hero MotoCorp’s extensive dealer network provides tailored services for Harley-Davidson owners, enhancing the overall ownership experience. You can now enjoy better maintenance options and quicker access to spare parts, ensuring your bike remains in top condition. This partnership ensures that Harley-Davidson owners in India receive the premium service they expect from the brand.
Future of Harley-Davidson in India
Plans for new product launches, including additional models and variants by 2025.
Harley-Davidson and Hero MotoCorp have ambitious plans for new product launches. By 2025, the partnership will expand the X440 lineup with additional variants. They also plan to develop a new motorcycle model, further diversifying the premium motorcycle segment. Hero MotoCorp aims to introduce six electric motorcycles under the Vida range and collaborate with Zero Motorcycles to launch four more models by 2025-2026. These developments ensure that you will have a wider range of options to choose from in the coming years.
Potential for long-term growth and strengthening Harley-Davidson’s presence in the Indian market.
Harley-Davidson has established itself as a key player in India, now ranking as the third-largest operation globally. The brand’s focus on local manufacturing and strategic partnerships demonstrates its commitment to long-term growth. Efforts to enhance brand awareness and introduce models like the Street 750 aim to attract younger enthusiasts, helping Harley-Davidson capture a larger market share in the premium segment.
Year | Growth Rate | |
|---|---|---|
2023 | 169,931 | N/A |
2024 | 134,597 | +11.4% |
These initiatives position Harley-Davidson to strengthen its market share in the premium segment and solidify its presence in India.
The collaboration between Harley-Davidson and Hero MotoCorp has transformed the premium motorcycle market in India. By leveraging Hero’s manufacturing expertise and distribution network, Harley-Davidson has introduced locally produced models like the X440, making premium motorcycles more accessible to you.
The Harley-Davidson factory plays a vital role in reducing costs and ensuring availability. It achieves this by collaborating with suppliers to meet cost and quality standards, employing a Just-In-Time inventory system, and using advanced technology to enhance efficiency. These efforts ensure you can enjoy premium motorcycles at competitive prices without compromising quality.
This partnership is reshaping the Indian motorcycle market by catering to the growing demand for affordable luxury bikes. With plans to expand the X440 platform and introduce new models, Harley-Davidson and Hero MotoCorp are set to offer exciting options for riders like you in the years ahead.
FAQ
What is the Harley-Davidson X440, and why is it significant?
The Harley-Davidson X440 is a locally manufactured motorcycle developed with Hero MotoCorp. It offers premium features at an affordable price, making Harley-Davidson accessible to a broader audience in India.
How has local manufacturing impacted Harley-Davidson’s pricing in India?
Local manufacturing has reduced import duties and production costs. This change has made Harley-Davidson motorcycles, like the X440, more competitively priced compared to imported models.
Where can you buy Harley-Davidson motorcycles in India?
You can purchase Harley-Davidson motorcycles through Hero MotoCorp’s extensive dealership network. This partnership has expanded availability across India, ensuring easier access to bikes and services.
What are the key features of the Harley-Davidson X440?
The X440 offers features like LED headlamps, dual-channel ABS, a 3.5-inch TFT display, and smartphone connectivity. It combines Harley-Davidson’s iconic design with modern technology.
What are Harley-Davidson’s future plans in India?
Harley-Davidson plans to launch new models and expand the X440 lineup by 2025. The collaboration with Hero MotoCorp aims to strengthen its presence in the Indian premium motorcycle market.
