Performance bikes from Harley, Triumph, Norton all set to vroom ahead on Indian roads
, ET Bureau|
Nov 18, 2017, 06.22 AM IST
MUMBAI: The Harleys, Triumphs, and Nortons could well be spotted more frequently on India’s roads in the next couple of years with the marquee names seeking to introduce bespoke variants for the mid-to-upper end of the Indian market, drawn by robust demand for the homegrown Royal Enfield.
Harley Davidson has already designed its smallest motorcycle — Street 750 — for the 250-750cc segment. BMW and Triumph have partnered TVS and Bajaj Auto to enter this space. Earlier this week, iconic British bike-maker Norton decided to ally with Kinetic for the local market. Even Yamaha and Mahindra are keen to join the race.
“This segment in India is booming, and it is a very large segment. Through this partnership, the brand will reach out to young Indians,” Paul Stroud, chief commercial officer, Triumph Motorcycles, Global, told ET on the alliance with Bajaj Auto.
The 8.5 lakh, mid-size motorcycle segment (200-750 cc) is the fastest expanding in India’s two-wheeler industry, and volumes are increasing 25% annually. Royal Enfield is at the vanguard of this expansion, with a share of about 76% of the market.
Royal Enfield, owned by Eicher Motors, has underpinned the segment’s growth by 10 times in the past 5-7 years, and earns a healthy profit margin of 31%. Second-placed Bajaj Auto has a 21% share, and sells the KTM and Dominar brands, fetching margins north of 20%.
For global performance-bike majors, this is an opportunity to not only increase their volumes and brand presence in India, but also use the country as the beachhead to capture several emerging markets. So, when Norton was finalising its global expansion plan, a 650-cc bike seemed the ideal vehicle to ride beyond the UK’s water margin.
The Kinetic partnership may help Norton sell also in Southeast Asia. BMW has already started exporting the 310-cc bike from Chennai to other parts of the world, and expects the model would make big money in India. Timo Resch, Head – Sales and Marketing, BMW Motorrad, said the parent company has even set up a national sales entity locally to help build the brand.
Royal Enfield, meanwhile, is offering attractive upgrade options – the 650 cc Interceptor and the 650 cc Continental GT – to loyal owners of the Bullet. “We are just getting started…We have the capital we need, we have the capability, and brand knowledge,” said Eicher Motors MD Siddhartha Lal.
ET View: Foster Innovation
Global motorcycle majors eyeing India forays is indeed notable. Big brands need demanding customers. And given its youthful population, and growing purchasing power, India has the potential to be a key hub of the global mid-sized motorcycle market.
The way ahead is to rationalise taxes and levies on motorcycles, and to mandate road-lanes as well, especially in the cities for safe and secure riding. We also need a thriving ecosystem for component makers and other suppliers. What’s required is proactive policy to boost innovation.
Harley Davidson has already designed its smallest motorcycle — Street 750 — for the 250-750cc segment. BMW and Triumph have partnered TVS and Bajaj Auto to enter this space. Earlier this week, iconic British bike-maker Norton decided to ally with Kinetic for the local market. Even Yamaha and Mahindra are keen to join the race.
“This segment in India is booming, and it is a very large segment. Through this partnership, the brand will reach out to young Indians,” Paul Stroud, chief commercial officer, Triumph Motorcycles, Global, told ET on the alliance with Bajaj Auto.
The 8.5 lakh, mid-size motorcycle segment (200-750 cc) is the fastest expanding in India’s two-wheeler industry, and volumes are increasing 25% annually. Royal Enfield is at the vanguard of this expansion, with a share of about 76% of the market.
Royal Enfield, owned by Eicher Motors, has underpinned the segment’s growth by 10 times in the past 5-7 years, and earns a healthy profit margin of 31%. Second-placed Bajaj Auto has a 21% share, and sells the KTM and Dominar brands, fetching margins north of 20%.
For global performance-bike majors, this is an opportunity to not only increase their volumes and brand presence in India, but also use the country as the beachhead to capture several emerging markets. So, when Norton was finalising its global expansion plan, a 650-cc bike seemed the ideal vehicle to ride beyond the UK’s water margin.
The Kinetic partnership may help Norton sell also in Southeast Asia. BMW has already started exporting the 310-cc bike from Chennai to other parts of the world, and expects the model would make big money in India. Timo Resch, Head – Sales and Marketing, BMW Motorrad, said the parent company has even set up a national sales entity locally to help build the brand.
Royal Enfield, meanwhile, is offering attractive upgrade options – the 650 cc Interceptor and the 650 cc Continental GT – to loyal owners of the Bullet. “We are just getting started…We have the capital we need, we have the capability, and brand knowledge,” said Eicher Motors MD Siddhartha Lal.
ET View: Foster Innovation
Global motorcycle majors eyeing India forays is indeed notable. Big brands need demanding customers. And given its youthful population, and growing purchasing power, India has the potential to be a key hub of the global mid-sized motorcycle market.
The way ahead is to rationalise taxes and levies on motorcycles, and to mandate road-lanes as well, especially in the cities for safe and secure riding. We also need a thriving ecosystem for component makers and other suppliers. What’s required is proactive policy to boost innovation.
