The Impact On Hero MotoCorp After Buying Harley-Davidson
Hero MotoCorp and Harley-Davidson have a long-standing partnership in India. In 2020, both companies announced a new agreement.
As per the new agreement, Hero MotoCorp became the exclusive distributor of Harley-Davidson motorcycles in India.
The agreement also included plans to jointly develop and manufacture motorcycles under the Harley-Davidson brand.
In July 2023, Hero MotoCorp and Harley-Davidson launched their first co-developed motorcycle, the X440. The X440 is a 440cc motorcycle that is designed to appeal to a younger and more price-conscious audience than traditional Harley-Davidson motorcycles.
Hero MotoCorp’s collaboration with Harley-Davidson to launch the X440 in India is expected to have a positive impact on the company’s business prospects.
Analysts at Prabhudas Lilladher have maintained a ‘Buy’ rating on Hero MotoCorp’s stock, citing the potential for stock re-rating.
The Harley Davidson X440 is seen as a strong contender in the premium segment for several reasons.
The bike offers urban styling with signature elements, excellent performance, and the allure of the Harley-Davidson brand.
It is competitively priced and is expected to help Hero MotoCorp gain a significant share in the premium market.
Hero MotoCorp plans to capitalize on this success by launching another premium bike based on the same platform and engine family, with even more competitive pricing.
The X440 is a co-developed product between Hero MotoCorp and Harley-Davidson and will be manufactured at Hero’s facility in Rajasthan.
It has been priced below market expectations and will be sold through Harley-Davidson’s dealer networks and Hero’s premium exclusive stores.
The bike features an impressive engine, distinctive styling, advanced technology, and safety features like dual-channel ABS.
Analysts who test drove the X440 found it to be impressive, capable of reaching high speeds with minimal vibrations.
They believe it poses a strong challenge to the current market leader in the premium segment and has the potential for substantial sales volumes.
The partnership between Hero MotoCorp and Harley-Davidson has been seen as a positive development for both companies.
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Hero MotoCorp gains access to Harley-Davidson’s iconic brand and technology, while Harley-Davidson gains access to Hero MotoCorp’s strong distribution network and manufacturing expertise in India.
It is still too early to say what the long-term impact of the partnership will be. However, it is clear that Hero MotoCorp and Harley-Davidson are committed to working together to grow their business in India.