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      Harley Davidson India To Reveal Updated Dealer Network By Dec 2020

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      Harley Davidson Motorcycles India
      Existing Harley Davidson India dealer network will remain active till 31st Dec

      Harley-Davidson India customers have received communication from the company to assure them of what 2021 and beyond will look like. For starters, the company is working closely with Hero Motocorp to ensure a continued and hassle-free customer experience starting next year.
      For now, all aspects of owning a Harley-Davidson are continuing just as they have until now. This includes accessories, gear, HOG activities, warranty, and service. All such, inclusions that are currently active will continue seamlessly from January 2021 in a renewed setup.
      Current Harley Davidson dealers will operate until December 31, 2020. The updated dealership and service network that will be operational in the new year will be commented before the end of 2020.
      Harley Davidson customer outreach
      The company remains engaged with Hero MotoCorp to ensure the Harley-Davidson experience isn’t affected. All concerns related to transitioning are a foremost thought at the company, and as updates are available, the same will be communicated with customers. Harley Davidson will continue to bring new motorcycles to the country. Such details will be communicated closer to launch date.
      Hero will take care of Harley Motorcycle Sales and Service in India
      Parts and accessories requirements will be available to order at dealers, and can be checked at the nearest dealer. The Financial Services Team will continue with customer Planned Maintenance Programme, and Extended Warranty.
      The association between both manufacturers and for long been one of a guessing game. Prior to the confirmation a few weeks earlier, Harley Davidson’s expected association meant all major names in the country were up for discussion. Despite rumours no formal announcements were forthcoming.
      It’s only in the aftermath of the Covid-19 pandemic that Harley’s Davidson’s Indian business arm has been laid bare and geared the brunt of rapid and extreme sales contraction. Limitations that led to the situation had long been burying its claws deep into Harley Davidson’s ability to have a sustainable business plan in India.
      Harley Davidson India business model
      When exiting its sales and manufacturing operations in India, the company said this is part of a company-wide 5-year restructuring plan to rewire, focus on high-priority markets, and streamline its product lineup. It’s Bawal assembly plant has been responsible for assembling the few 1,000 units the manufacturer sold each other. Being a ‘complete knock-down’ (CBU) assembly plant means parts and components were shipped from US, and assembled here for India.
      The allure and premise of Harley Davidson in India has always been an expensive one, and its business model didn’t help in achieving a more price efficient system. Even though the company did go on to make smaller engine bikes for the lock market, that too found few takers and wasn’t transformative in terms of converting buyers as the company had hoped. More

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      Harley Davidson Dealers Unhappy Post Hero Alliance – Might File Legal Case

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      File Photo.
      Harley Davidson dealers in India have hired a law firm and are looking at legal options

      While the Harley Davidson & Hero MotoCorp deal is a positive development for customers and motorcycle enthusiasts, many Harley dealerships are facing an uncertain future.
      Harley dealers are even more worried now because there’s a growing possibility that the total number of dealerships may be reduced to just 13-15 dealerships. This will be a major setback to Harley dealers who may be asked to shut shop.
      Demand for higher compensation
      One of the primary complaints of Harley dealers is that the compensation package is not enough to cover their losses. The compensation offered by Harley-Davidson management includes two components, one of which is Rs 1,500 per sq. ft., after adjusting for 10% annual value depreciation. The second component is reimbursement of sales margins for a period of 6 months.
      Harley dealers claim that this compensation is significantly lower than their collective investments over the last decade, which amounts to around Rs 300 crore. Moreover, since the lockdown was lifted in August, the dealers have been incurring huge losses of around Rs 30-40 lakh every month.
      Harley Davidson India Dealer
      In the domestic market, Harley’s bestselling product was Street 750 mid-sized motorcycle. It contributed around 70-80% of the company’s sales in the country.
      Earlier, dealers used to sell around 20-25 Harleys every month, but the numbers are down to single digits. As new Harley products may take some time to be launched via Hero MotoCorp partnership, dealers are demanding higher compensation for their investment and losses.
      Law firm appointed
      With the possibility that on-going talks may not lead to favourable developments, the Harley-Davidson Dealers Association has appointed a law firm AZB & Partners. The plan is to explore legal options to safeguard their investment and probably get higher compensation to recover their losses. However, this is a preliminary move to assess potential options. The dealers have not filed any case against either Harley or Hero MotoCorp.
      Harley Davidson dealers are hopeful that things will be resolved in a favourable manner for all stakeholders. They are currently waiting for a formal announcement to be made by either Harley or Hero MotoCorp. The dealers say that they need to be clearly told about the next steps, so that they can make adjustments accordingly.
      As per the deal between the two companies, Hero MotoCorp will be taking over the sales and service operations of Harley. This will be done via the existing Harley outlets.
      Hero will also be retailing original parts, accessories, riding gear, apparel and general merchandise. Hero also gets the license to develop and sell premium motorcycles with Harley Davidson brand name. The first of these products could be a 350cc – 500cc motorcycle that will challenge the supremacy of Royal Enfield. More

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      Harley Davidson XR338 Street Tracker Concept Based On Benelli 300cc

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      Harley Davidson XR338 Street Tracker. Images – BikeExif
      The XR338 is a concept Harley Davidson 338R; which could influence the its street tracker version

      With global sales getting affected due to pandemic and closure of business operations in emerging markets such as India, the American manufacturer has not had a pleasant 2020. However, the brand has a very rich legacy over many years and it is confident about its resurgence in future.
      A couple of months ago the 338R from Harley was the talk of the town as several spied images and patent sketches had leaked on the internet giving us an idea of what the company’s future could look like. Termed as the ‘baby Harley’, this bike looked nothing like a typical Harley Davidson.

      Atypical because neither does the bike belong to a cruiser segment nor does it feature a big displacement powertrain. The motorcycle adopts a flat-track racer body style. Even though flat trackers aren’t quite the big thing these days, an Italian industrial design house has seen potential in this segment and therefore created its own concept prototype. Just like teased patent images of 338R, the XR338 too is based on Benelli 302S.
      Brief about Engines Engineering
      Founded by Alberto Strazzari in 1979, Engines Engineering (EE) specializes in motorcycle design and development and have worked previously with OEMs like Yamaha, Ducati, Honda, Benelli, Suzuki and many more.

      It has also provided its services for designing purposes for local Italian manufacturers. However, this is the first time it has attempted something like this on an existing model and turned it into something completely different.
      Design of XR338
      Dubbed as XR338, this naked street tracker is aimed primarily at the younger consumers of the US market. Design-wise, EE has admitted that the XR338 draws major inspirations from Harley-Davidson XR750. The iconic flat tracker is celebrating its 50th Anniversary this year. EE claims that the prototype is fully functional and 70 percent ready for production.

      Although most of Benelli’s components are intact, it gets its own modified frame with the stock 302S trellis structure making way for a more flowing affair. EE has also added its own body, fuel system, LED lighting, instrumentation and a new pair of 18-inch custom wheels. Suspension has also been tweaked slightly in accordance with the new wheels and bike’s revised mass. It also receives a new exhaust muffler and ECU unit.
      EE has designed the XR338 keeping in mind the latest emission norms including Euro 5 standards, US DOT, and even CARB requirements thus removing most hurdles before production. EE claims to have built this prototype in 120 days and it would take another six months to complete the last 30 percent remaining for it to be production ready.

      Powertrain Utilised
      Benelli 302S is powered by a 300 cc twin-cylinder which pushes out 37.5 bhp and 25.6 Nm of peak torque. Even though XR338 will share its underpinnings with Qianjiang QJ350 and Benelli 302S, it is said to carry its own American heart and soul. Speculations are rife that the 338R will be powered by a 338cc parallel-twin engine which will produce 43 bhp. It is expected to be paired with a 6-speed transmission unit.
      Whether the XR338 draws some inspiration for folks at Harley Davidson is yet to be seen but its design is definitely a head-turner. Also, the future of 338R in India hangs in balance since Harley Davidson relinquishing its duties in the country and handing it over to Hero MotoCorp.
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      Harley Davidson Dealers May Reduce Because Of Partnership With Hero

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      File Photo
      Harley Davidson last week entered into a distribution and licensing agreement with Hero MotoCorp as a part of its Rewire strategy.

      Harley Davidson’s partnership with Indian two-wheeler giant Hero MotoCorp was on the expected lines since the American brand quit its India operations a couple of months ago. As per this deal, Hero MotoCorp will now develop and sell a range of premium motorcycles under the Harley Davidson brand name.
      However, this partnership has put the fate of Harley India’s existing 33 dealerships across the country in doubt. These dealers are spread across metros and smaller towns across India and have no idea what future holds for them. As per last update, Harley Davidson was still in process of communicating this transition to its existing dealers.
      Current status of Harley Davidson Dealer in India
      Dealers still awaiting clarity from Harley or Hero MotoCorp; expect the network to be shrunk to 13-15 dealerships from the current 33. Dealers have confessed that mid-sized motorcycle Street 750 accounted for 70-80 percent sales in the country and has been out of production for more than a month.
      A Harley Davidson dealer on condition of anonymity admitted that in its good days, the dealers sold around 20-25 units of Harley each month which has come down to single-digit figures. With Street 750 most likely not to return and the launch of a mid-size motorcycle from the Hero-Harley combination still a few years away, dealers feel they should be compensated for the investments made by them or should increase the profit margins to sustain operations.
      Hero will take care of Harley Motorcycle Sales and Service in India
      Future of these dealers
      The report states that Hero Moto will not only sell and service existing Harley bikes in India but also “sell parts and accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers network in India”.
      Another Harley Davidson dealer said that in 2013, the American motorcycle brand was solely dependent on CBUs and there were only 9-10 dealerships at that time. The company is heading towards the same direction now.
      The most affected dealers are going to be those in the smaller markets of the country and those who had recently refurbished their showrooms and invested a sizeable chunk. A clearer picture is expected later this week when an official communication from Harley Davidson is sent out to dealers which will throw some light on increased margins or compensation for the dealers.
      Harley Davidson officially announced its tie-up Hero MotoCorp. This is not a first in two wheeler industry. We have already seen the likes of Bajaj-KTM, BMW-TVS and Jawa-Classic Legends. The first product of this joint venture is likely to be a mid-size motorcycle in the 350-500cc segment. This made-in-India Harley motorcycle is also expected to be exported by Hero to overseas markets.
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      Hero And Harley Davidson Partnership Official – Sales, Service, New Launches

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      Hero will take care of Harley Motorcycle Sales and Service in India
      Hero MotoCorp will develop and sell Harley Davidson branded premium motorcycles

      Harley Davidson withdrew its official presence in India last month only to kickstart an all-new innings, this time in partnership with Hero Motocorp. News about the American cruiser specialist scouting for a suitable partner in India has been circulating for a while now with Hero Motocorp and Classic Legends (Jawa’s parent company) touted as front runners. Now, it is official.
      Harley Davidson partners with Hero MotoCorp
      Harley Davidson has announced that it has entered into distribution and licensing agreement with Hero MotoCorp as a part of its Rewire strategy. As a part of the distribution agreement, Hero MotoCorp will be responsible for selling and service Harley Davidson motorcycles through the American marque’s existing network of outlets.
      Hero’s well established dealership network would also be used to expand Harley’s market coverage. In addition to motorcycles, the Indian partner will also take care of retailing HD parts, accessories, general merchandise, riding gears and apparels.
      Hero to develop Harley motorcycles
      The most interesting aspect of the partnership is the licensing agreement according to which Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley Davidson brand name. No further details about this arrangement have been revealed as of now.
      Harley servicing will also be done by Hero dealers.
      Hero MotoCorp, the world’s largest two wheeler maker in terms of volume, has been aspiring to establish a strong presence in the medium displacement motorcycle segment. The company’s expertise lies in highly fuel efficient small displacement commuter motorcycles and scooters.
      Hero’s premium motorcycle ambitions did not progress beyond a handful of design concepts. The acquisition of American sportsbike brand EBR turned out to be unfruitful for both the entities.
      Harley Davidson’s backing would come as a huge boost for Hero’s aspirations. In turn, the cruiser brand will benefit massively from Hero’s unparalleled cost structure and distribution network in India.
      The made-in-India medium displacement Harley Davidson’s are expected to be pitted directly against the Royal Enfield range which has been enjoying near monopoly in the segment. Hero is also likely to export the entry-level Harley Davidson motorcycles to several markets.
      Timeline
      It is a bit too early to talk about the product segments and timelines as of now. If we were to take a guess, the first product to born from the Hero-Harley partnership would be a motorcycle with a displacement between 350 to 500 cc.
      The Harley Davidson – Hero MotoCorp partnership is a great news for the Indian motorcycle enthusiasts. Owners of existing Harley Davidson motorcycles will be able to get service as well as spares at Harley Davidson dealerships as well as at Hero dealerships. More

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      Harley Davidson 338R Patent Images Leak – To Be Produced By Hero In India?

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      The Harley Davidson 338R will have Asia and Europe as its primary markets but it remains to be seen what the company has in store for its future in India
      Ever since Jochen Zeitz took over as Harley Davidson’s CEO in July 2020, there have been sea of changes, most of which involved rolling back on the aggressive market and product expansion plans his predecessor announced. Under “The Rewire” strategy, the American cruiser brand has decided to trim its product portfolio by 30% and this also affects the ones that are in the pipeline.
      Harley Davidson 338R

      The Harley Davidson 338R, widely referred by the international media as the “baby Harley“, has been in the news for quite a while now but the brand’s course correction put its prospects into uncertainty. However, the recent spyshots and leaked patent sketches strongly indicate that the most affordable Harley has managed to escape the restructuring process and is on its way to the production line.
      The 338R is an atypical Harley Davidson because it is neither a cruiser nor does it feature a big displacement engine. Developed in association with China’s Qianjiang Group, the 338R shares its platform with Qianjiang QJ350 and Benelli 302S. The motorcycle adopts flat-track racer body style. Salient features include a slender fuel tank, heavily contoured seat, a exposed trellis frame and alloy wheels.

      Specifications
      The Harley Davidson 338R will be powered by a 338 cc parallel-twin engine (final confirmation of the displacement is awaited) which is reported to generate 43 hp (5 hp more than the 300 cc engine of Benelli 302S). Transmission is a 6-speed unit.
      The motorcycle sits on inverted telescopic front forks and monoshock rear suspension. Wheels, braking system, swing arm etc come from the Benelli 302S and QJ350.

      Target Markets
      As a part of its new strategy, Harley Davidson has decided to focus only on around 50 highly profitable markets across the world. This meant withdrawing from several low-volume markets including India. However, Asia will be the primary market for the entry-level Harley Davidson motorcycle. The company has hinted that it is working on a new business model for India. This could mean, entering into a partnership with a local entity to manufacture and retail its 338R but things are too early to speculate on this front.
      The Harley Davidson 338R will emerge as an important volume generator for the brand, not only in Asia, but also in Europe where medium displacement motorcycles cater to budding riders with A2 license.
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      Hero MotoCorp Likely To Manufacture Harley Davidson Motorcycles In India

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      Hero MotoCorp looks the likely candidate to continue Harley Davidson’s operation in India
      A few days ago we received the heartbreaking news of motorcycling giant Harley Davidson quitting India. The company failed to increase their sales in India and that has forced the bike maker to make this tough decision. After a decade of unfruitful returns, the company shut down all its manufacturing and sales operations in India.

      The Milwaukee-based motorcycle brand on Thursday announced that it is shutting down its manufacturing plant in India. According to FADA, the closure of Harley Davidson’s operations in India could lead up to over 2000 job losses. However, that might not be the end of the road for the iconic brand in India.
      What this deal could mean?
      As per reports, Hero MotoCorp is close to inking a deal with Harley Davidson which will grant the distribution rights of the latter’s products in India. This distribution arrangement will allow the Indian bikemaker to import and sell Harley-Davidson bikes in India. However, there has been no official word from either of the companies.

      Hero MotoCorp could also manufacture Harley Davidson motorcycles in India. They have no plans to takeover the Bawal plant of Harley, as they have production capacity at their existing plants. This could likely mean that the Street 750 and the upcoming Street 350 will likely be produced in India by Hero MotoCorp.
      A Harley official was recently quoted saying, “This is not a permanent exit. We are evaluating all options to maintain a presence in the Indian market after December.” Currently, both companies are working out the modalities of managing Harley’s 33 outlets in India. Confirmation about the same could be received in the next fifteen days.
      Harley in India
      HD arrived in India about a decade back. At first, they only sold CBUs. Later, Harley Davidson started assembly operations and brought completely knocked down (CKD) kits imported from the USA at their facility in Bawal, Haryana. The company is currently in the process of laying off its workers and informing its dealers and suppliers about reimbursements and future plans. In a decade of operations in India, the American marque could only sell 25,000 units of its motorcycles till date.
      Hero MotoCorp, on the other hand is the world’s largest two-wheeler manufacturer and therefore, it is fitting that the company takes over Harley’s operations in India. However, industry experts believe that Hero is not looking to take over Harley’s Bawal facility or any other asset as it is confident of contract manufacturing and assembly of Harley motorcycles in India.
      If the deal does materialise, then Harley could continue its operations in India at a considerably lower cost structure than before. Harley Davidson is currently evaluating options to continue offering servicing and spare parts to its existing customers. Reports suggest an official announcement could be made within 2 weeks.
      Other Manufacturers who quit India
      The Street 750 has been the most popular bike from the American bike manufacturer in India. Harley Davidson becomes the latest bandwagon of automotive manufacturers to quit India. The others include General Motors, Fiat, UM Motorcycles, MAN and Scania. More

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      Harley Davidson India Dealers Were Kept In The Dark – 2,000 Job Losses

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      Harley Davidson has officially exited from India – Shut down their manufacturing plant
      Harley Davidson’s exit from India may have limited financial impact on the country, but it could be a negative sign for investors. Such developments may be a cause for concern in the current scenario where the government is working to kick-start the economy and attract foreign investment.
      2k job losses possible

      According to FADA (Federation of Automobile Dealers Association), Harley’s exit can lead to around 2k job losses across its dealerships. Around 70 employees deployed at the company’s assembly plant in Bawal, Haryana will also have to start looking for new work opportunities.
      Speaking about the development, FADA President Vinkesh Gulati said that luxury two-wheeler dealerships usually employ around 50 people. As there are 35 Harley dealerships, around 2k dealer staff could lose their jobs.

      In financial terms, Harley’s exit would result in losses of around Rs 130 crore. Setting up a dealership for luxury brand such as Harley costs around Rs 3-4 crore. With 35 dealerships going out of business, the overall capital loss will be nearly Rs 110 – 130 crore.
      Dealers kept in the dark
      Talking about dealerships, their main complaint is that Harley took an abrupt decision and did not provide any information to them in advance. As a result, they are now staring at an uncertain future. Mr Gulati said that such developments happen because currently there is no Franchise Protection Act in the country.
      As of now, Harley has not officially informed its dealerships about the decision to close the assembly plant. Harley said that its dealerships will continue to serve their customers throughout the period of the contract term. Harley is also in touch with customers and has assured that they will be updated about the next steps.
      Harley’s India exit is part of its global business restructuring plan wherein the company will be reducing its product portfolio and exiting from unviable markets. Harley will focus on markets with potential, ones that can deliver targeted profits. The company also aims to reduce its global workforce. Around 500 employees are expected to be terminated and close to 700 positions globally will be eliminated.
      Search for a local partner
      It has been reported that Harley is looking for a local partner that can import and sell the company’s bikes in the Indian market. Sources have revealed that Harley is currently in advanced talks with Hero MotoCorp, India’s largest two-wheeler manufacturer. However, both Harley and Hero MotoCorp have refused to confirm this. We do hope such an arrangement becomes a possibility, as it will create a win-win for all stakeholders including Harley fans and dealerships. More