Harley-Davidson is exploring the expansion of its collaboration with Hero MotoCorp to co-develop and manufacture entry-level performance motorcycles and cruisers in India for global markets.

The Harley-Davidson-Hero MotoCorp partnership, which currently offers the Harley-Davidson X440 and Hero Mavrick in the domestic market, has planned a series of launches during the current financial year to expand its presence in the premium motorcycle segment.

According to industry sources familiar with the plans, some of these models will be exported for the first time and sold in emerging markets.

The first model expected to be launched is the Harley-Davidson Sprint, which is scheduled to reach the market later this year. Additional products are expected to follow in the coming months, according to the sources.

Responding to a query from media sources regarding plans to co-develop products with Hero MotoCorp and utilise India as a manufacturing base for exports, Harley-Davidson stated: "Hero is an important partner, and we continue to work with them in support of our strategy to expand access to Harley-Davidson in key markets." The company did not provide further details.

Harshavardhan Chitale, Chief Executive Officer of Hero MotoCorp, confirmed that additional Harley-Davidson-branded launches are planned this year but declined to specify whether these products would be introduced in international markets.

"The Hero-Harley collaboration does not restrict sales to India only. If Harley finds a product suitable for its global markets, it can source it from Hero for sale elsewhere. That decision rests with Harley," he said during a recent interaction.

The development comes at a time when Harley-Davidson has outlined a product-led strategy, titled "Back to Bricks", aimed at increasing sales and market share by leveraging existing investments.

The company plans to introduce 20 new models and variants based on existing platforms over the next three years in an effort to lower entry barriers and attract a broader customer base, according to comments made by Harley-Davidson President and Chief Executive Officer Artie Starrs during an investor presentation last month. Harley-Davidson's global retail volumes declined by 40% between 2019 and 2025, while margins fell by 18% and dealer profitability declined by 80% during the same period.

As part of its strategy for the premium motorcycle segment, Hero MotoCorp plans to dedicate its Neemrana facility in Rajasthan to the production of premium motorcycles. The company is also expanding its network of premium-exclusive showrooms, which now exceeds 130 outlets and continues to grow. Harley-Davidson products are positioned within this strategy to support local sales.

Harley-Davidson, which established a manufacturing facility in Bawal, Haryana, in 2011, decided to cease manufacturing operations in India in 2019 due to weak sales volumes and sustained financial losses. High import tariffs on completely built units and completely knocked-down motorcycles made its products less competitive in the market. In 2020, the company signed a licensing and distribution agreement with Hero MotoCorp to sell and service Harley-Davidson motorcycles, as well as to distribute parts, accessories, riding gear, apparel, and general merchandise through a network of Harley-Davidson dealerships and Hero MotoCorp's existing dealer network in India.

The agreement also included provisions for the joint development and manufacture of motorcycles at Hero MotoCorp's facilities. The Harley-Davidson X440, the first product jointly developed by the two companies, is priced from Rs. 235,000 (US$ 2,490). Hero MotoCorp also markets its own version of the motorcycle under the Mavrick nameplate.

With a market share of approximately 11% in the motorcycle segment above 350 cc and below 500 cc, the company was the third-largest player in the category, behind Bajaj Auto and Royal Enfield.

According to the report, operating profit margins in the premium motorcycle segment often exceed those recorded in the software export industry.