Hero and Harley Distribution Agreement in India Market


Hero MotoCorp on 27 October 2020 announced  it has entered into a distribution and licensing agreement with American motorcycle maker Harley Davidson to develop and sell a range of premium motorcycles under the Harley Davidson brand name.


Key Points-

Distribution and Licensing Agreement

  • Distribution Agreement- As 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.
  • Licensing Agreement-As per a Licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.

Advantage 

This arrangement is mutually beneficial for both companies and riders in India, as it brings together the iconic Harley-Davidson brand with the strong distribution network and customer service of Hero MotoCorp," the company further stated.

Harley-Davidson Motor Co.
  • In September 2020 Harley-Davidson Motor Co. had decided to exit India.
  • In India, the world’s largest and most price-sensitive two-wheeler market, it struggled with sharply declining production and sales.
  • Indian production volume fell from 11,753 units in FY16 to 4,533 units in FY20 and sales declined from 4,708 units to 2,470 units during the same period
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