Harley Could Be In Talks With Hero MotoCorp For A Distribution Deal

New Delhi: A day after Harley-Davidson announced its exit from India, it has emerged that the American maker could be in advanced talks with Hero MotoCorp to distribute its products in India.

Harley has decided to stop sales and manufacturing in India.

The new deal could be an arrangement that would make Hero the master distributor of Harley motorcycles in India, three sources told Reuters.

Hero is also expected to manufacture Harley motorcycles with 300-600 cc engine capacity. Harley’s 33 dealerships would also come under Hero’s management if the deal materializes.

Harley and Hero have declined to comment.

It is believed that Harley could be changing its business model in India.

Hero is India’s largest two-wheeler maker, having produced 6.4 million two-wheelers last year.

President Donald Trump has often criticized India for its high taxes that make it difficult for foreign companies to import vehicles here. That’s the reason why Tesla, the most popular electric car maker, hasn’t been able to start its operations in India. Earlier, General Motors exited India and Ford sold a stake to Mahindra & Mahindra to keep afloat.

If the Harley-Hero deal goes through, it will be a step-up for Hero into the mid and big-sized engine segments.

Also Read: Why The Harley American Dream Didn’t Work In India