The Harley-Hero partnership in India is finally taking shape as reports suggest that Hero MotoCorp has signed 10 Harley-Davidson dealerships in the country. Though there isn’t any official confirmation to this statement, it is being assumed that the details about the updated dealer network will be announced before the end of this year. The new contracts are expected to come into effect from January 1, 2021. The American cruiser brand had previously confirmed that the current dealer network will continue operations until 31 December 2020.
In other related news, the Harley-Davidson Dealers Association, which represents all 33 dealers of the American motorcycle brand in India, is still seeking fair compensation from Harley-Davidson after the company decided to withdraw from independent operations in India.
What Harley-Davidson Dealers Association is saying?
“All the 33 dealer partners have been facing a problem since Harley-Davidson announced withdrawal of independent operations in India and revealed a new partnership with Hero MotoCorp. Given a time-bound, ‘take it or leave it’ situation that offered them no other option, 10 of the 33 dealer partners have gone ahead with becoming a part of the Hero MotoCorp’s dealership network. Given the situation where the dealers continue to wait to hear from Harley-Davidson on the issue of adequate compensation, these new dealership offers being held off for 23 of the 33 dealers only indicates that how it is not beneficial to anyone. The company is yet to decide on the fate and plight of the 23 dealers who are not being approached by Hero MotoCorp to be a part of its dealership network. We feel that providing us with a fair deal is Harley-Davidson’s undeniable responsibility towards us,” the Harley-Davidson Dealers Association added.
The dealers have claimed that they were kept in the dark regarding the company’s future plans and the news struck a huge blow as Harley-Davidson never officially informed its dealer body about its India exit. The dealers added that they have received a ‘very minor compensation’ from the American motorcycle making brand which are completely inadequate. The company has backed out completely from providing any compensation to a dealer in case it transitions into a Hero dealer in future, said Harley-Davidson dealers.
Talking about the compensation on offer, the brand has reportedly announced a compensation package of ₹1,500 per sq. ft. with a 10% annual value-depreciated rate and a 6-month reimbursement of the margins of sale. “The support package given by the company is not equal to the loss suffered by us since August’20 after the lockdown was lifted and till Hero comes on board which will be at least another 6 months,” said an affected Harley-Davidson dealer.