Harley-Davidson has passed a new milestone in developing a small-capacity motorcycle for Asian markets.

The 338cc parallel-twin-powered ‘baby’ Harley has completed its design phase, and is now headed for production.

H-D and its Chinese partner Qianjiang signed off on a final design at a signing ceremony, however, it has yet to reveal the sketches to the public.

At this stage, all we have to go off are the illustrations that Harley released earlier this year, which all but confirm that the bike is based on the Benelli 302S naked bike.

It is believed that the upcoming Harley will be based on the Benelli 302S.

Benelli is a subsidiary of Qianjiang, so the partnership would make sense.

If this is all true, the baby Harley will be powered by a 338cc engine, using components from the Benelli 302S, and from the larger TRK 502 and Leoncino.

Benelli is set to change the 302S name to ‘350S’, which is unlikely to be a coincidence.

It is unclear what the new Harley-Davidson will be called, however, it is currently referred to as the HD350 Project.

At this stage, it is believed that the small-capacity Harley will be primarily targeted at China and India, and will not be made available in Australia.

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