Exclusive: Own A Harley-Davidson Bike Or Planning To Buy One? Read This First

We caught up with one of the members of Harley’s Dealers Association for their perspective on the current scheme of things in light of the Hero-Harley partnership

On September 24, Harley-Davidson announced its exit from the Indian market. While the news came as a big blow to many enthusiasts, owners and dealers, there was another announcement that stood as a beacon of hope for everyone associated with the brand. Hero MotoCorp and Harley-Davidson tied up with a plan for a renewed, albeit scaled-down operations for the Indian market. Has the partnership made things easier for Harley’s existing dealership? How is it going to affect the existing and future customers of the legendary American cruiser brand? We spoke to one of the members of the Harley-Davidson Dealers Association to know their side of things.

Servicing Needs of Existing Harley Customers 

If you own a Harley-Davidson, you can get your bike serviced at one of the total 33 dealerships across the country, but only until the end of this year. From next year onwards, Hero MotoCorp will only keep 10 dealerships running. The Indian bikemaker will recruit new dealerships but that is still some time away, presumably a couple of years.

The good news is that Harley’s ten dealerships (and more in the future) will stock up all the parts for the Softail, Sportster and Touring models. However, if you’re an owner of the Harley-Davidson Street 750 or the Street Rod, procuring spares for the bikes will be a challenge as the current suppliers have cut down production considerably or stopped manufacturing them altogether. So, the only way ahead, as suggested by the dealer is to do some sort of jugaad. That isn’t exactly comforting considering the 750cc range forms a major chunk of Harley’s overall customers.

Planning to Buy a New Harley-Davidson? 

On the bright side, some of the Sportster and Softail models are being sold at very competitive prices. However, as this is a dealer initiative to make at least some kind of business, the bikes are being sold off without any margin. Since the dealers have a good rapport with each other, the 10 dealerships that are finalised will help sell off the unsold stocks from the 23 dealerships left out by the Hero-Harley partnership.

Another good news for customers (as well as dealerships) is that Harley and Hero are working on a motorcycle designed specifically for India. This bike will be sold across all the 10 dealerships as well as all the premium dealerships that Hero might open up in a couple of years. However, there’s still some time for that. We can hope to hear more developments on this motorcycle by 2023 at the earliest. But as for the near future, the Harley-Davidson Pan America 1250 is likely to be launched in early 2021, which should ease the air of uncertainty and maybe even bring the brand’s spark back to life.

What’s Happening With the Existing Harley Dealers?

As mentioned earlier, the Hero-Harley partnership will absorb only 10 of the 33 dealerships for its renewed operations in India. The dealers will be finalised after Harley and its dealers complete the paperwork. The selected dealerships will receive compensation for three months on the margins of their bike sales.

For those who are being let go, Harley is offering a compensation of Rs 1,500 per sq ft of the dealership area with 10 percent yearly depreciation. Besides, each dealer’s average monthly margin for the nine-month period (before the coronavirus pandemic) will be calculated and the sum will be paid for six months’ worth of time. However, the dealers aren’t satisfied with this arrangement. They say their setup costs aren’t being covered because Harley is considering the depreciation factor, despite being loyal to the brand for years.

While the dealers are happy with the six-month margin, they want the compensation to be revised to Rs 2,000 per sq ft of the dealership space with no depreciation costs at all. This is considering the fact that Harley had already given them its 3-year projection, which seemingly painted a rosy picture of what of what the brand had in store back then. 

Having a strong dealer network and good relationship with dealers is crucial for any brand to sustain in the long run. We hope Hero MotoCorp, Harley-Davidson and its dealers reach an amicable solution soon. Stay tuned to BikeDekho.com for more updates.