Hero MotoCorp has set-up a new unit for sales, service, and distribution of Harley-Davidson motorcycles and merchandise in India. This comes in the backdrop of the announcement made in October 2020 by Hero Motocorp. Harley-Davidson made the decision to exit the Indian market in September but it signed an agreement with the Indian two-wheeler maker. As per the agreement signed last year, Hero MotoCorp will develop and retail a wide range of premium bikes under the Harley-Davidson brand name in India. Not just the bikes but also several other things like components, accessories, apparels and riding gear will be sold in the country through Harley-Davidson & Hero’s authorized outlets in the domestic market.
The new unit will be headed by Ravi Avalur, who will report to Dr Pawan Munjal, Chairman, and CEO - Hero MotoCorp. With the new announcement, Harley-Davidson India is back in India with 11 dealerships under Hero's purview and presence in 11 Indian cities. The first batch of motorcycles and merchandise have already been dispatched to the authorized dealerships on January 18, 2021. To help in the smooth transition, Ravi will be aided by four executives from Harley-Davidson's erstwhile operations.
Additionally, the two brands will be developing new motorcycles for the emerging markets as part of the agreement. Also, Hero MotoCorp will be expanding service, parts, and accessories business beyond the current 11 cities to more locations through its own dealer network. Hero MotoCorp has planned new Harley-Davidson model launches for the coming year as the premium motorcycle market picks up pace in 2021.
Talking more about the iconic American brand, Jochen Zeitz, Chairman, President and Chief Executive Officer of Harley-Davidson outlined a new 5 year recovery plan from 2021 to 2025. The plan called 'The Hardire' aims to deliver low double-digit growth in earnings per share. Further, the manufacturer expects single-digit growth in revenue by 2025. As a part of the new plan, Harley-Davidson will invest more money in its core heavyweight-bike segment, plus setting up a dedicated electric-motorcycle division. The company looks forward to investing money in the range from $190 million to $250 million annually, as it looks to strengthen its electrification technology.
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