The potential Indian alliance companions may do contract manufacturing for Harley Davidson within the mid-size motorbike house – according to Bajaj-KTM or TVS-BMW.
Mahindra’s Traditional Legends could possibly be the plain alternative for the enduring leisure bike making firm because it aligns very nicely with M&M’s method of catering to the premium finish of the market with marquee manufacturers , and for Harley, it will get a neighborhood firm with a big manufacturing facility and a longtime native provide chain.
Traditional Legends was established to re-introduce iconic marquee motorbike manufacturers out there and presently retails the Jawa motorbike model additionally owns iconic manufacturers like BSA & Yezdi.
Whereas it began of with spectacular gross sales numbers, delays in deliveries and high quality points makes it troublesome for the corporate to satisfy the rising demand.
Hero Motocorp has acknowledged that it is open to partnerships to get a stronger foothold within the premium phase. Market leaders in entry stage/commuter and the 125cc segments, it lacks premium bike constructing functionality.
After a number of makes an attempt, Hero has lastly managed to break-into 200 cc phase with Xtreme, however bikes past 350 cc area doesn’t exist with the maker of Splendor, with Harley approaching board, the positioning would have been fairly complementary in nature.
Harley-Davidson has been scouting for alliance companions in India with a producing and distribution community to make light-weight bikes within the sub-500cc class. Below the brand new CEO, issues are being reviewed once more, say sources.
Whereas the contours of the agreements are nonetheless being labored on, sources say it is going to be a non-equity partnership to make bikes concentrating on the small displacement class.
To an in depth electronic mail question , Harley Davidson, Mahindra ,Hero Motocorp and Royal Enfield stated it doesn’t touch upon market hypothesis and rumours.
“By itself and with restricted volumes, Harley will battle to localise. By partnering with a neighborhood firm, Harley is not going to solely have the ability to shed mounted price, but additionally speed up sourcing with the assistance of the native associate. During the last 5 years, the corporate has explored mid-size bikes for India and India like rising markets. Its mannequin developed in China has a possible to cater to the Indian market,” stated one of many a number of folks within the know of the corporate’s plans.
Earlier this 12 months, Harley partnered with Chinese language motorbike maker, Zhejiang Qianjiang, mom firm to Benelli, to launch Benelli 350 and the Harley-Davidson 338. Such type of a smaller capability motorbike might be essential for the Milwaukee cult model which has been seeing slower gross sales within the nation.