[TusharK]

According to a media report, Harley-Davidson is looking to partner with an Indian 2-wheeler brand to manufacture mid-size motorcycles.



Harley-Davidson is said to be looking for partners with a manufacturing and distribution network to built sub-500cc bikes in India. It has also been reported that the company is keen to forge a non-equity partnership.

It is rumoured that the American bike maker could collaborate with Mahindra's Classic Legends, which also caters to a premium segment of the market with a brand like Jawa. The company also has a manufacturing facility with an established local supply chain.

Hero Motocorp is also believed to be a front-runner, as the company had earlier stated its willingness to collaborate in order to gain a foothold in the premium segment. While the brand is extremely popular in the commuter segment, it does not offer higher capacity bikes beyond 350cc.

Harley-Davidson has not commented on these reports. Neither Mahindra nor Hero Motocorp have independently confirmed the latest reports.

Source

Link to Team-BHP News

[vinair]

Holly molly! Thought I would see 'Mahindra' somewhere in the article when I first read the title and I am not wrong!!!

For all the good Mahindra has done to its other acquisitions, they should just stop pursuing this deal!!! even if it's a partnership!!

Run Harley! Run Davidson!!

[venbas]

With Hero Motocorp having just a racing spec XF3R for higher capacity segment whilst Mahindra being embedded in cruiser segment with Jawa motorcycles, Harley Davidson would be better off with Hero Motocorp. There would be little or no scope for cannibalization with JV partner

[AlQuazi]

Originally Posted by vinair

Run Harley! Run Davidson!!

Don't agree with this. Rather Run! Mahindra, Run!

[timuseravan]

Originally Posted by TusharK

Hero Motocorp is also believed to be a front-runner, as the company had earlier stated its willingness to collaborate in order to gain a foothold in the premium segment. While the brand is extremely popular in the commuter segment, it does not offer higher capacity bikes beyond 350cc.

Hero and Harley will be a good partnership. Both have experience in selling the same motorcycles for decades
But seriously I am hoping this works out well. After KTM, Triumph, BMW, and now HD entering the 350-500cc segment could only mean good things for the Indian motorcycling community.

[anjan_c2007]

Some news reports say Harley Davidson is either looking for collaborating with Classic Legends (M &M) or with Hero Motocop. But the Economic Times (ET) report shows that Harley Davidson has a greater tilt towards Classic Legends (M&M). The Hero Motocop option is given less coverage in the ET news report.

As such, today Classic Legends is struggling for survival and M & M has not yet been able to have a firm footing in the two wheeler segment, despite being there since a decade, starting with the Taiwanese partner, inherited from Kinetic.

Harley Davidson has also failed to make inroads into the Indian market due to myriad reasons that have been posted on many threads both by owners-users and armchair commentators like me.

Now whether the interesting Classic Legends- Harley Davidson teaming up of two hitherto, recent, great failures on the Indian automobile scenario will emerge successful or not would be an interesting topic to discuss by all who have a fair knowledge on the matter.

[A.M.]

I really, REALLY do not want them to collaborate with Mahindra!

There isn't ONE partnership M&M has not botched up. Just look at Classic Legends! Shameful sales figures for such a capable brand + motorcycle + financial power.
And to add to that, many people don't even know that Mahindra branded 2 wheelers exist!

Hero service/management (or whatever) might be sub-standard, but just look at their sales.
Hero has the hunger to hop into the premium segment, and it is a blessing for Harley. PLEASE H-D, I pray, join Hero.
That's H-D's only chance for survival in India!

[Abhi_Automobile]

I hope that HD does not choose Mahindra. We don’t want two struggling corporations coming together to create a mess!

HD should be looking to partner with an Org that has manufacturing capabilities of the highest order. Nothing more - nothing less! If HD can’t provide engineering for such partnership products if and when such a JV comes into being - is it just franchising it’s brand name?

I wonder what this means for its JV with Benelli’s Chinese owners, where HD is just rebranding they Benelli bike (their loyalists will be gutted with that!)

[landcruiser123]

HD and Bajaj would make a good partnership IMHO. Bajaj really needs some know-how in making cruisers.

HD + Mahindra 2W = Two wrongs don't make a right.

[darkLightning]

Instead of going with Harley, Hero and Mahindra should instead enter into their own Joint-Venture.

Imagine a Mojo/Jawa with dealer, manufacturing and service network of Hero ?

This partnership will bring more moolah in my opinion then either a Classic Legends Harley or a Hero Motocorp Harley.

Harley should collaborate with TVS instead. TVS has shown working prowess with BMW already and there just won't be any overlap between TVS and HD product range.

[GTO]

Ah, Harley wants to do a "Ford" . If I was a 2-wheeler manufacturer, I'd jump at the opportunity! Harley India might be in trouble currently, but there is no doubt that it is one of the most iconic motorcycle marques today. With the product gap becoming slimmer & slimmer, "brand" is everything today.

What do you guys think of a tie-up with Royal Enfield? Royal Enfield can happily focus on the sub-5 lakh segments, while they can push Harley in the 5+ lakh categories.

[adwaith]

Harley and Mahindra sounds like a recipe for trouble for both. While the Mojo is decent and Classic Legends tasting initial success, Mahindra hasn't made much headway in comparison to other Indian manufacturers.

[neil.jericho]

Originally Posted by GTO

What do you guys think of a tie-up with Royal Enfield? Royal Enfield can happily focus on the sub-5 lakh segments, while they can push Harley in the 5+ lakh categories.

There is no chance of Royal Enfield letting this happen. Harley Davidson's sweet spot has always been big capacity motorcycles, but with the newest CEO taking a sharp u turn on the existing strategy, it has chosen a perplexing geo focus, product mix and long term strategy . The company is also highly dependent on its entry level models, the Street 500 (not sold in India) and Street 750 doing well to bring in numbers today, with the additional benefit being that the same customers can upgrade to another bigger, more profitable HD model tomorrow.

Royal Enfield is approaching their global sales from the exact opposite angle. They have been making small capacity motorcycles in droves, understood better than anyone else that the simple, no frills, while low cost middle weight segment offering is the way to grow globally and shake off their dreary reputation. All this while they build their engineering capabilities to move towards even bigger capacity engines that will take on the traditionally global giants.

In an odd way, the two companies intersected their sales strategies at the same requirement - a low cost bike for the middle weight segment. The difference was that HD wanted to use it for high volumes to cater to the emerging markets but RE wanted to use it as a long term brand building exercise to expand in the developed markets. But the Street 750 was considered a low cost and hence non Harley motorcycle by purists. It wasnt really embraced by the HD crowd. The Interceptor 650 on the other hand was a premium motorcycle for RE and gives old timers a good option to upgrade to while also pulling in non traditional buyers.

Royal Enfield has nothing to gain with partnering with Harley Davidson. They will lose their current focus on expansion plans by plugging the holes in the Harley Davidson mess.

Hero has nothing much to gain from Harley either. There are zero synergies there. At best, a Mahindra and HD tie up will bring some credibility to the long floundering Mahindra two wheeler division experiment while giving HD a lifeline of sorts. But does Mahindra have the engineering expertise or R&D capabilities that HD is looking for? Probably not.

[srini1785]

Originally Posted by GTO

What do you guys think of a tie-up with Royal Enfield? Royal Enfield can happily focus on the sub-5 lakh segments, while they can push Harley in the 5+ lakh categories.

They can do it by floating a subsidiary company and RE adopting a hands off approach with only marketing of HD bikes. As @neil.Jericho has pointed out they are on diagrammatically opposite end of the spectrum. RE and HD are only one segment away in core playing field. With RE already having tasted success in the 500-650cc segment with the twins , they are treading on HD territory. While HD only wants to maintain a nominal presence in india , RE could have that "heavy lifestyle " tag which HD needs to market its bikes. So , IMO, could be a complimentary strategy for both.

A JV is ruled out. Its a general rule that when two heavies combine, its always a disaster : Nissan - Renault , Daimler - Chrysler , Ford - Mahindra , Tata - ???.

[Abhi_Automobile]

Originally Posted by GTO

What do you guys think of a tie-up with Royal Enfield? Royal Enfield can happily focus on the sub-5 lakh segments, while they can push Harley in the 5+ lakh categories.

Interesting thought. If I were Sid Lal, I’d pass the opportunity though. For the simple reason that RE by itself is creating nice niche for itself in International markets, especially Europe. Many UK reviewers and end users are questioning the value of buying Triumph Street Twin/T100, generally considered better quality bikes compared to entry level HDs, over RE Interceptor.

Plus, HD doesn’t really have much experience in “smaller” bikes as such so I wonder whether it’ll add much in terms of Engineering prowess in the short term (I personally think HD has made good bikes whenever it’s gone out of it’s beaten path).

Lastly, there could be conflict of interest because they’ll both want to play in same (middleweight) segments, albeit from opposite directions. RE does plan to bring upto 800 cc bikes too.

Just my 2 cents!