Harley-Davidson Inc is in advanced talks with Hero MotoCorp for a distribution deal which will allow the US firm’s motorcycles to be sold in India, after it stops local manufacturing there. The Milwaukee-based company will stop sales and shut its manufacturing plant in India.
Discussions are also ongoing to let Hero MotorCorp become a contract manufacturer for at least one Harley-Davidson motorcycle with 300-600 cc engine capacity, which it will launch later.
Harley-Davidson manufactured just 4,500 motorcycles during FY20, largely assembled from imported knock-down kits at its plant near New Delhi, which it will shut as part of its announced restructuring.
Harley-Davidson’s 33 dealerships will likely come under Hero MotorCorp’s management under the new arrangement.