Hero and Harley-Davidson Strengthen Partnership to Expand X440 and Develop New Model

Hero MotoCorp has renewed its collaboration with Harley-Davidson to expand the Harley-Davidson X440 lineup by introducing new variants. The extended partnership also focuses on jointly designing and manufacturing a new motorcycle model. According to Hero MotoCorp’s exchange filing on Friday, this deal ensures the integration of high standards from both brands in terms of design, development, and contract manufacturing.

A Collaboration Rooted in Success Since 2020

Since its inception in 2020, the Hero-Harley partnership has been instrumental in catering to the domestic and select international markets. The agreement underscores an "extension of the existing collaboration," which aims to scale the X440 into multiple variants while working on a fresh motorcycle concept.

Reviving Harley-Davidson in India

Harley-Davidson, founded in 1903, exited the Indian market in 2019 due to high import duties and sluggish sales. However, its strategic collaboration with Hero MotoCorp has facilitated a strong comeback. Under this partnership, Hero MotoCorp handles manufacturing, sales, and service operations for Harley-Davidson motorcycles in India, including the production of the X440 at its Neemrana facility.

X440’s Role in Disrupting the Market

The Harley-Davidson X440, priced between Rs 2.4 lakh and Rs 2.8 lakh, has garnered significant attention in the Indian market, directly competing with Royal Enfield’s dominance in the mid-range segment. The bike's success is attributed to Hero’s robust local production capabilities combined with Harley-Davidson’s international expertise, which have collectively met the growing demand for premium motorcycles.

Harley-Davidson and Hero MotoCorp: Financial Highlights

In 2023, Harley-Davidson reported a turnover of $5.84 billion, reflecting its global market presence. Hero MotoCorp, on the other hand, achieved revenues of Rs 37,455 crore in the financial year 2023-24 (FY24), highlighting its dominance in the Indian two-wheeler market.

Hero’s Unique Contribution with the Mavrick

As part of its diverse portfolio, Hero MotoCorp also markets its own variant, the Mavrick, which contributed to the sale of 14,837 units in FY24. This variant, tailored to Indian sensibilities, complements the premium positioning of the X440 while bolstering Hero’s overall sales performance.

Hero’s Festive Season and Rural Market Surge

Hero MotoCorp achieved record-breaking retail sales of 1.6 million units during the recent festive season. This surge was driven by strong rural demand, which has consistently supported the company’s growth. For the quarter ending September 30, 2024, Hero reported a 5.6% rise in net profit to Rs 1,063 crore. Consolidated revenue also saw a 10% growth, reaching Rs 10,482.93 crore.

The Road Ahead for Hero-Harley Partnership

The extension of the Hero-Harley collaboration signals a new era of innovation and growth for both brands. With the expansion of the X440 lineup and the development of a new motorcycle, the partnership is poised to capture a larger share of the growing premium motorcycle segment in India and beyond.

Conclusion

The extended partnership between Hero MotoCorp and Harley-Davidson marks a pivotal step in reshaping the premium motorcycle market in India. By broadening the Harley-Davidson X440 lineup and collaborating on a new motorcycle model, the alliance combines Hero’s robust local expertise with Harley-Davidson’s iconic global brand appeal. This synergy has not only revived Harley-Davidson’s presence in India but also positioned Hero MotoCorp as a key player in the premium segment.

With a strong focus on innovation, expanding product portfolios, and catering to both domestic and international markets, the partnership is set to unlock new opportunities for growth. Backed by record-breaking sales and increasing rural demand, Hero MotoCorp’s financial momentum adds further strength to this collaboration. Together, Hero and Harley are poised to redefine the future of premium biking, setting new benchmarks in quality, performance, and customer satisfaction.