Hero Motocorp-Harley Davidson Partnership: Company Shares Update

Hero MotoCorp has expanded its cooperation with Harley-Davidson to introduce new versions to the Harley-Davidson X440 portfolio and collaborate on the development of an additional motorcycle model. The agreement covers design, development, and contract production, ensuring that both businesses maintain high standards, Hero MotoCorp said in an exchange filing on Friday.

Hero Moto has been expanding its two-wheeler offering since last year, with plans for both ICE and EV scooters. CEO Niranjan Gupta stated in FY24 that Hero Moto intends to 'expand enormously' in the premium lineup spanning ICE and EVs. During the September quarter results call, management stated that it will now focus on brand building and launching a new model over the next six months.

“Extension of the existing collaboration between Hero and H-D, which has been in place since October 2020, to expand the X440 motorcycle into new variants and to develop and manufacture a new motorcycle”, the filing reported.

Hero MotoCorp and Harley Davidson Tie-up

Hero MotoCorp and Harley-Davidson have formed a strategic alliance. Harley-Davidson, founded in 1903, left India in 2019 due to high import charges and low sales but has since resumed operations. Hero MotoCorp currently manages Harley motorcycle manufacture, sales, and servicing in India, with models such as the X440 produced at its Neemrana factory.

Harley-Davidson had a $5.84 billion turnover in 2023, whereas Hero MotoCorp had Rs 37,455 crore in revenue for the fiscal year 2023-24. Hero MotoCorp's net profit increased by 5.6 per cent to Rs 1,063 crore in the quarter ending September 30, 2024, owing to rising rural demand. Consolidated revenue also increased by 10 per cent, reaching Rs 10,482.93 crore.

Hero and Harley Shares Updates

As of December 27, 2024, Hero MotoCorp's share price is Rs 4,237.95, down 0.87 per cent from the previous closing of Rs 4,259.10. Harley-Davidson's (NYSE: HOG) stock closed at $30.79 on December 26, 2024, down 15.21 per cent from the previous year.

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