en.Wedoany.com Reported - Harley-Davidson and India's Hero MotoCorp are expanding their partnership, planning to develop and produce entry-level performance motorcycles and cruisers for the global market in India.

According to sources cited by the Economic Times, the jointly developed models HD X440 and Hero Mavrick have already been launched in the Indian market. A series of new products are planned for the current fiscal year, with some models set to be exported to emerging markets for the first time.

The first new model is the Harley-Davidson Sprint, expected to launch later this year, with more products to follow in the coming months.

In response to related inquiries, Harley-Davidson stated that Hero is an important partner and that the two companies will continue to collaborate to support its strategy of expanding brand coverage in key markets, but did not disclose further details.

Hero MotoCorp CEO Harshavardhan Chitale confirmed plans to launch more Harley-branded models this year but did not specify whether they would be sold in international markets. He stated that Hero's partnership with Harley is not limited to the Indian market; if Harley deems the products suitable for the global market, it can source them from Hero and sell them in other regions.

This move comes as Harley-Davidson launches a new product-oriented strategy called "Back to Bricks," aimed at accelerating sales and increasing market share by leveraging existing investments. Harley-Davidson Global President and CEO Artie Starrs stated that over the next three years, the company plans to launch 20 new models and variants based on existing platforms to lower entry barriers and reach a broader customer base.

Between 2019 and 2025, Harley-Davidson's global retail sales declined by 40%, profit margins compressed by 18%, and dealer profitability dropped by 80%.

As part of its strategy to expand into the premium market, Hero MotoCorp plans to utilize its factory in Neemrana, Rajasthan, to produce high-end motorcycles and expand its premium dealership network, which currently exceeds 130 stores and continues to grow weekly. Harley serves as the flagship brand, aiming to drive local sales.

Harley-Davidson opened a factory in Bawal, Haryana, in 2011 but ceased manufacturing operations in India in 2019 due to low sales and reduced competitiveness caused by high import tariffs. In 2020, Harley signed a licensing and distribution agreement with Hero MotoCorp to sell motorcycles and accessories through Harley-branded stores and Hero's existing network, with plans to jointly develop and manufacture motorcycles.

The HD X440 is the first product jointly developed by the two companies, with a starting price of 235,000 Indian rupees (ex-showroom). Hero also sells this model under the Mavrick brand. In the last fiscal year, Hero sold a total of 14,375 units of these two models. In this segment (over 350cc but under 500cc), Hero holds approximately an 11% market share, making it the third-largest player after Bajaj Auto and Royal Enfield. In the premium motorcycle category, operating profit margins often exceed those of the software export industry.

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