American motorcycle giant Harley-Davidson is looking for a partnership with Indian two-wheeler brands to produce its iconic cruiser bikes, as part of its global restructuring efforts.
Classic Legends and Hero MotoCorp are said to be the front-runners and one of them could well end up doing contract manufacturing for Harley-Davidson in the midsize motorcycle space.
Of the two, it is Mahindra’s Classic Legends that is said to have the upper hand since it already makes Jawa range of bikes in the 300cc category and is a more premium brand than Hero. It also owns BSA and Yezdi brands.
Also, a Harley-Davidson partnership with Classic Legends would mean the American bikemaker would be able to make use of a large manufacturing facility and an established supply chain.
Hero MotoCorp, on the other hand is open to partnerships so as to set foot and cement its place in the premium midsize segment. Although it is the top 2-wheeler maker, it does not have any product in the above said segment and is not seen as a premium brand either.
If the deal goes through, Harley-Davidson partnership with Indian brands will be a non-equity option and it will stick to manufacturing sub-500cc motorcycles, thus catering to the small displacement (compared traditional Harley bikes) category of motorcycles.
Harley has already partnered with Zhejiang Qianjiang Chinese bikemaker to manufacture its 338R small capacity bike. All these moves are aimed at shedding fixed cost and accelerate sourcing, as the brand wants to get back to its hey days.
Harley-Davidson Partnership
- Harley-Davidson is currently on the lookout for Indian partners
- Classic Legends and Hero MotoCorp are on top of the list
- Will make sub-500cc motorcycles through contract manufacturing
Source – ETAuto.com