"Hero MotoCorp and Harley-Davidson are set to expand their partnership to bring more models of the iconic US motorcycle maker to India, riding on the overwhelming response to the X-440," multiple people aware of the negotiations informed media sources.

"The two companies are close to finalising an agreement to broaden their existing partnership, which is limited to a single model," the sources further added. The pact could also include manufacturing of Harley-Davidson models for export to other markets, an announcement is likely within coming weeks, they continued.

Hero MotoCorp and Harley-Davidson did not respond to media source's queries until press time on 19th May, 2024.

"The market for premium motorcycles is growing and Harley-Davidson executives have stated their satisfaction with the Hero joint venture," media sources said.

Hero MotoCorp already manufactures the X-440 range at its Neemrana facility in Rajasthan.

A licensing agreement signed between Milwaukee-headquartered Harley-Davidson and Hero MotoCorp in October 2020 gave India's leading two-wheeler maker the right to manufacture Harley's X-440 model in India. Under a distribution agreement, Hero also has the rights to sell and service motorcycles and also sell parts and accessories and general merchandise, riding gear and apparel through a network of brand-exclusive Harley Davidson dealers and Hero MotoCorp's existing dealership network in India.

Harley-Davidson was founded in 1903 and had decided to stop manufacturing operations in India in 2019 because of poor demand and sales, largely due to high import tariffs that made its products uncompetitive.

It struck an agreement a year later with Hero MotoCorp which could locally develop its products at more attractive prices. Hero MotoCorp also sells its own variant of the X-440 under the Mavrick brand.

Hero MotoCorp is already the country's third-largest seller of motorcycles in the premium segment with engine capacity greater than 350 cc and lower than 500 cc, after Bajaj Auto and Royal Enfield.

Given the strong response from Indian consumers to the motorcycles co-developed on the 440cc platform with Harley, Hero ramped up production capacity of these products in March, compared to January.

The X-440 - the first product jointly developed by the two companies - is priced at around Rs. 250,000 (US$ 3,000), and intends to challenge the dominance of Royal Enfield in the premium bike category where operating profit margins are much higher than in sub-250 cc segments.