In a strategic transfer to beat excessive customs duties that hinder gross sales of its imported bikes in India, Harley-Davidson has joined fingers with Hero MotoCorp to introduce locally-produced premium fashions within the nation. The Chairman, President, and CEO of Harley-Davidson, Jochen Zeitz, emphasised the benefits of the partnership, which permits the American cult bike-maker to discover “quantity alternatives” and introduce aggressive merchandise within the Indian market.
The 50 p.c customs responsibility imposed by India on absolutely built-up imported bikes prompted Harley-Davidson to hunt a collaboration with Hero MotoCorp, following its determination to exit its manufacturing operations within the nation three years in the past. Zeitz highlighted the advantages of Hero’s manufacturing capabilities and willingness to spend money on constructing the Harley-Davidson model in India. He regarded the partnership as a smart move, although the excessive customs responsibility stays a draw back.
“And (there’s) lots of upside with a lot better manufacturing functionality that Hero brings in and the willingness to take a position into the enterprise, to actually construct us up as a model. So, I’d say it’s the proper determination,” he advised PTI.
The current introduction of their first co-developed product in India, the Harley-Davidson X440, marked a big milestone for the partnership. Manufactured by Hero MotoCorp at its Neemrana-based plant, the X440 presents prospects a possibility to expertise the Harley model with out being topic to tariffs. With a beginning worth of Rs 2.29 lakh, the bike goals to seize the eye of Indian riders looking for a premium biking expertise.
Harley-Davidson had beforehand introduced the discontinuation of gross sales and manufacturing operations in India in September 2020, following the closure of its meeting plant in Bawal, Haryana. Nevertheless, in October 2020, the corporate fashioned a partnership with Hero MotoCorp to cater to the Indian market. Underneath the settlement, Hero MotoCorp would develop and promote a variety of premium bikes underneath the Harley-Davidson model whereas additionally offering service and elements assist for Harley bikes.
When questioned about the opportunity of the long-lasting model making a comeback within the Indian market if the tariff challenge is resolved sooner or later, Zeitz deferred the choice to political management. He questioned the rationale behind imposing excessive tariffs on bikes imported into India in comparison with bikes exported to america. Zeitz additionally expressed the corporate’s present give attention to making the X440 profitable in India earlier than contemplating extra fashions. He mentioned that Harley’s core phase is 975 plus cc bikes.
Relating to Harley-Davidson’s plans for utilising India as a producing base for export markets, Zeitz indicated that the corporate had beforehand manufactured its 750cc bikes in India for worldwide markets. Though not ruling out the potential for exports, Zeitz reiterated the significance of making certain the success of the X440 in India as a stepping stone to future endeavors.
“However proper now, the main target is admittedly to be sure that the product is profitable in India – one essential cornerstone is to get X440 to be a hit in India, from there we are able to construct and provide you with different concepts,” Zeitz mentioned.

Harley-Davidson X440
Zeitz additionally talked about the opportunity of introducing Harley Originals, the corporate’s attire vary, in India. Acknowledging the potential within the phase, he expressed curiosity in exploring such alternatives sooner or later. Moreover, Zeitz acknowledged the rising demand for premium bikes within the Indian market, notably within the premium mid-segment. Nevertheless, he famous that the upper worth, compounded by import duties, restricted the gross sales potential of bigger bikes in India, regardless of the nation’s rising center class and their aspirations for luxurious merchandise.
By way of the corporate’s world technique, Zeitz emphasised specializing in core segments that present a return on funding and driving profitability. By streamlining its product complexity and rising profitability, Harley-Davidson goals to prioritize segments the place the model’s distinctive enchantment and profitability align. Zeitz recognized China and India as markets with vital development potential and underscored the significance of building a presence in these populous international locations for long-term development.
Whereas Zeitz acknowledged the inevitability of an electrical Harley-Davidson sooner or later, he said that it isn’t a near-term plan. Recognising various charges of electrification adoption throughout markets, he highlighted the corporate’s aspirations to change into a frontrunner in electrification as a holding firm.