In September this year, Harley-Davidson announced the discontinuation of sales and manufacturing operations in India, a decade right after it began promoting its premium bikes in the nation.
Harley-Davidson dealers on Thursday sought a fair deal from the enterprise, which has announced its exit from the nation and has announced a partnership with Hero MotoCorp for the Indian industry. Harley-Davidson Dealers Association represents 33 outlets in the nation. “All the 33 dealer partners have been facing a problem since Harley-Davidson announced the withdrawal of independent operations in India and revealed a new partnership with Hero MotoCorp,” the Harley-Davidson Dealers Association stated in a statement.
What Harley-Davidson has supplied to the dealerships
Upon its exit from India as a standalone enterprise, Harley-Davidson announced that it will be retailing its motorcycles in the nation via Hero MotoCorp. This offers the dealerships the selection to be absorbed by the Hero MotoCorp network or to withdraw from H-D motorcycles retail.
The ones who pick to wrap small business have been supplied Rs 1,500 per square foot. This only amounts to compensation of about Rs 50-60 lakh whereas dealerships have invested some Rs 5-6 crore in the setting up and operation, which includes garage gear, tools, motorcycle lifts, and so forth.
Saharsh Damani, CEO, Federation of Automobile Dealers Associations (FADA) tells us that the dealerships which have been inducted by Hero MotorCorp have not been clarified on specifics like sales margin, provide, and so forth by Harley-Davidson or Hero MotoCorp but.
Customers have been facing troubles as properly as their motorcycles need to have servicing but can not be carried out at present. Damani continues to say that about 10-12 H-D dealerships had been purely dealership companies but the rest had been set up by Harley enthusiasts who set up an H-D dealership out of their passion for the brand and do not have any other dealerships beneath them.
So far 10 dealerships have gone ahead with becoming a aspect of Hero MotoCorp’s dealership network right after they had been presented with a time-bound take it or leave it circumstance. The rest of the 23 dealerships at present hang in limbo with no clear communication from H-D on sufficient compensation or absorption in the Hero network and with their contracts ending on 31st December.
Also study: After facing backlash from dealers, Harley-Davidson India guarantees a ‘smooth transition’
“Hero MotoCorp absorbing only 33 percent of the dealers leaves the rest with uncertainty about the fate of the dealer partner investments and future business outlooks. This includes the 10 dealers who will be coerced to act without receiving any benefit,” the dealer association states.
Hero MotoCorp is but to determine on the fate and plight of the 23 dealers who are not getting approached by it to be a aspect of its dealership network, it added.
“We feel that providing us with a fair deal is Harley-Davidson’s undeniable responsibility towards us,” the dealers noted.
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