Biting the Bullet

Vijay C Roy

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July 3, Harley-Davidson launched its much-anticipated and most-affordable motorcycle ever, the X440, in India at a starting price of Rs 2.29 lakh (ex-showroom). The first motorcycle to have come out of the US-based manufacturer and Hero MotoCorp’s partnership will be available in three variants. The base Denim variant has been priced at Rs 2.29 lakh (ex-showroom) while the mid and top variants, Vivid and Pinnacle, are priced at Rs 2.49 lakh and Rs 2.69 lakh, ex-showroom, respectively. The all-new X440 will draw its power from a 440cc, oil-cooled, single-cylinder engine.

Two days later, Bajaj Auto in collaboration with UK-based Triumph Motorcycles unveiled Triumph Speed 400 and Scrambler 400X in India, the first motorcycles to have come out of their association. These will be sold only through Triumph dealerships. Speed 400 will be retailed at Rs 2.33 lakh. For the first 10,000 customers, the price tag is Rs 2.23 lakh. The price for Scrambler 400X will be known later. While the partnership between Bajaj and Triumph was announced in 2017 for designing, manufacturing and distribution of mid-capacity motorcycles, these are the most-affordable ones sold by Triumph, like in the case of Harley-Davidson.

The entry of Harley-Davidson and Triumph in the mid-weight category (>250cc-800cc) comes at a time when the premium market is on fire. Given the brand image of Harley-Davidson and Triumph as well as the competitive pricing, it is perceived that they can be strong contenders in the segment where Royal Enfield is the undisputed number one. The models will primarily rival the likes of Royal Enfield Classic 350 and Meteor 350.

ROYAL enfield: 7.34 lakh sold in india in FY23

40% growth over FY22 | 93% market share

Models

• Bullet 350, Bullet Electra, Classic 350,
• Meteor 350, Hunter 350, Himalayan,
• Continental GT, Interceptor, Super Meteor 650

Middle-weight bike ventures

• Back in 2013, TVS Motor Company collaborated with BMW Motorrad to manufacture sub-500cc motorcycles for global markets. Currently, they are retailing models in 250cc to 350cc category.
• In 2017, Triumph and Bajaj announced a partnership to develop and manufacture middle-weight motorcycles. The first fruits of this partnership, Speed 400 and Scrambler 400X, were launched in India on July 5.
• In 2021, Harley-Davidson and Hero MotoCorp announced a partnership to develop and manufacture middle-weight motorcycles. The first bike from this partnership, X440, was launched in India on July 3.
• Piaggio Group has also been active.
• Jawa, a Czech motorcycle brand, was revived in India in 2018. It has also been active in the middle-weight segment.

Robust category

In the last fiscal, the middle-weight segment (>250cc-800cc) witnessed a sale of 7,91,878 units in the domestic market, compared to 5,74,675 in 2021-22. Sales rose by 38 per cent, more than double the overall two-wheeler category, according to data from the Society of Indian Automobile Manufacturers.

Insiders say a significant number of the mid-size segment buyers were first-time motorcycle customers, attributed to rising aspiration levels. For example, Pathankot-based Jai Mahajan (30), who comes from a business family, recently booked Harley-Davidson X440. “I was never a fan of bikes but since the brand is trustworthy and carries a premium, I got hooked on to it and booked it.”

Also excited are bike enthusiasts and those upgrading from the typical 125cc-150cc motorcycles. There has been subdued growth in the entry-level segment (75cc to 110 cc), which grew by just 5.4 per cent in the last fiscal year.

Drivers of growth

“I don’t ride a motorcycle to add days to my life. I ride to add life to my days.” The saying is apt for the young at heart. The aspirational buyers look at two-wheelers not just for the daily commute, but the whole experience of motorcycling.

In the middle-weight segment, specifically in the 250cc-800cc range, Royal Enfield has an overwhelming market share of 93 per cent, followed by HMSI or Honda Motorcycles and Scooters India Pvt Ltd (4 per cent) and Bajaj Auto (2 per cent).

To challenge the dominance of Royal Enfield Classic 350 and Bullet 350, which have been long-time favourites on Indian roads, the competitors are relying on innovation, differentiation and the introduction of new models, ultimately benefitting consumers with more choices and improved features.

Prior to the Hero-Harley-Davidson and Bajaj-Triumph partnerships, brands like Jawa and Yezdi had also tried to challenge the dominance of Royal Enfield in the middle-weight segment.

Apart from Royal Enfield, brands like HMSI, India Kawasaki Motors (P) Ltd, Mahindra Two Wheelers Ltd, TVS Motor Company, Bajaj Auto Ltd, Piaggio Vehicles (P) Ltd, Suzuki Motorcycle (P) Ltd, Triumph Motorcycle India (P) Ltd and Classic Legends (Jawa and Yezdi) offer bikes in the middle-weight segment.

More than 30 models are being offered by different manufacturers in this segment.

Game-changer

Analysts are of the view that the partnership between manufacturers like Triumph and Bajaj, as well as Harley-Davidson and Hero MotoCorp will allow for resource sharing, access to different markets and the ability to navigate import tariffs and pricing structure effectively. The partnerships are expected to play a vital role in the development of middle-weight bikes, and challenging the dominance of Royal Enfield.

Dr Randeep Singh Mann, a dentist and director of the Harley-Davidson Owners Group of Himalayan region — Punjab, Himachal, Haryana and J&K, says, “Harley-Davidson has brought biking culture to India. We definitely think the recent launches will make biking a mass activity. Many of the first-time buyers will purchase the bikes and later on graduate to more powerful engines.”

The partnerships between international and local manufacturers will also allow for effective market penetration and product development tailored to the specific needs of the target markets. “We are hopeful of (achieving) significant volumes,” said Bajaj Auto Managing Director Rajiv Bajaj at the launch of the two motorcycles.

The segment has benefitted from technological advancements, with manufacturers incorporating features and technologies such as advanced electronics, improved engine performance, better suspension systems and enhanced safety features.