Harley-Davidson in talks with Hero MotoCorp for a potential alliance, says report

Harley-Davidson Motor is in discussions with India's Hero MotoCorp Ltd to outsource the production of 250-500cc motorcycles that the US-based motorbike maker plans to develop for emerging markets, Mint reported.

The talks are still at a preliminary stage and both the parties are willing to explore an alliance that can make Harley-Davidson motorbikes affordable in India, said the report citing four people familiar with the matter.

Currently, a Harley-Davidson motorbike attracts a customs duty of 50 percent. If built in India, the cost of the bikes will reduce. For Hero, the deal will help bring the firm in the premium segment, said the report.

Harley-Davidson approached Hero MotoCorp for a possible partnership, sources told the paper, adding that the likely reason for Harley approaching Hero could be that since the Indian firm has proved to be sustainable and have frugal manufacturing, it would help the American firm to develop products in the lower engine capacity segments.