Work in full swing to introduce retro-styled Harley-Davidson: Hero MotoCorp
Leading two-wheeler maker Hero MotoCorp is launching a retro-styled Harley-Davidson model at full throttle as it seeks to enter a highly profitable segment of the premium motorcycle space, says senior company official. .
The Hero-Harley-Davidson alliance paid off last year after the iconic American two-wheeler manufacturer announced it was shutting down its sales and manufacturing activities in India, a decade after starting to sell. its top-of-the-range bikes in the country.
âThe Harley tie-in strategy is twofold. One, of course, is that we are the distributors of Harley bicycle sales in India. We have 14 dealers, around 30 points of contact, and it’s going well. The second part of the strategy is to launch a motorcycle in this retro segment, which accounts for almost a third of the overall premium segment outside the profit pool, âHero MotoCorp CFO Niranjan Gupta said in a statement. call for an analyst.
He added, âI dare say that the segment is probably around 60-70% of the premium segment’s profit pool, so this is the second step of the strategy, to launch in this segment, and Harley is clearly an icon. brand and work is in full swing on it.
He was answering a question about the road ahead for Harley motorcycles in the country.
In October of last year, Hero MotoCorp and Harley-Davidson announced a partnership for the Indian market. Pursuant to the licensing agreement, HeroMotoCorp took over the exclusive distribution rights for the Harley-Davidson motorcycle, parts and merchandise in India after the iconic US motorcycle manufacturer withdrew from the Indian market.
Earlier this year, Hero MotoCorp started the reservation process for 13 Harley-Davidson models, priced between Rs 10 lakh and Rs 35 lakh (ex-showroom).
About a hundred Harley-Davidson motorcycles, constituting the first batch assigned to the Indian market this year, have been fully pre-booked.
Earlier this month, Hero MotoCorp began reservations for the next batch of Harley-Davidson ‘Pan America’ 1250 adventure touring motorcycles after the first batch was completely sold out.
Hero MotoCorp expects the tie-up with Harley-Davidson to help accelerate its presence in the premium bike segment where it aims to establish a comprehensive portfolio spanning all segments and engine sizes.
The company, leader in the economy bike segment (100-110cc), is also developing electric two-wheelers for the mass and premium segments.
Gupta noted that the company’s first EV product will be deployed by March 2022.
He added that a product in partnership with Gogoro is expected to hit the market at the end of next year.
Hero and Gogoro Inc, which is a Taiwanese electric vehicle company with the world’s largest battery exchange network, announced a partnership earlier this year.
Elaborating on the factors that would help the business in the electric vehicle segment, Gupta noted: Hero has a huge distribution force and we have 100 million cumulative customers, and the people entering the electric vehicle business will not be fully new.
“A large number will actually come from the cumulative existing customer base, and therefore Hero is in an advantageous position, given the cumulative customer base and the reach it has in every nook and cranny of the country.”
The company also remained positive on holiday season sales due to the good monsoon and other related factors.
âGoing forward, looking at the shape of the monsoon, looking at the shape of the economic recovery, we expect a positive trend that has already started to emerge, picking up during the festive (period), and through the Following this, great dynamism should return in the second half of this exercise. It’s roughly mid to short term, âGupta noted.
In the long term, the opportunities for the two-wheeler sector remain intact, he said.
“We remain very confident in the two-wheel sector, as the underlying factors of under-penetration, more women in education and employment, more funding opportunities and more organization, everything remains intact. and to top it off, more personal mobility as a factor will be playing slowly now, âGupta said.
Even the semiconductor shortage problem affecting the industry has no impact on the business, he noted. âSo we’re heading towards a good festival and our inventories are progressing in that direction,â Gupta noted.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)