Big Brands Investing in High Indian Premium Bike Market
Published On Apr 9, 2013 12:00 AM By Rajpal Singh
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We have reported several times that the market of premium bikes in Indian is on a constant rise, which is attracting bike brands to invest in India. With an overall sales of 14 million two-wheelers annually, the Indian two-wheeler industry is easily one of the best places to invest for two-wheeler manufacturers. The latest developments also hint the same, like yesterday BMW Motorrad joined hands with the Indian brand TVS; earlier, Harley-Davidson and Honda announced to assemble their bikes in India.
We list up some big happenings in the Indian two-wheeler market, which will change the dynamics of the growing premium bike market in India
BMW Motorrad and TVS Joint Venture:
BMW Motorrad, the second largest two-wheeler manufacturer in Europe, joined hands with the Indian bike maker TVS to launch all new sub-500cc bikes in India. India is a very important market for BMW, as their presence in such a huge market is minimal at the moment. BMW Motorrad will not only get access of the TVS' well developed infrastructure, but the new products will also suit the demands of Indian riders, which will help them to increase their share in the Indian market. BMW is selling their bikes in India since 2011, which are being imported from Germany. Indian Govt. increased the import duty on bikes larger than 800cc, so BMW might also assemble its bikes locally at TVS' plant in Chennai.
BMW Motorrad gets most of its sales from its traditional markets including Europe, USA and Canada, which are showing low demand now-a-days. The weakening demand in its traditional markets and minimal presence in emerging markets result in a fall of ranking for BMW. It slipped to No.2 spot, while Austrian rival KTM grabbed the no.1 spot due to its overwhelming performance in India. This make it clear that emerging markets such as India, South East Asia and Latin America will drive growth for even niche brands such as BMW, and that is why BMW got into this alliance to develop smaller performance superbikes, which is expected to hit new highs in these markets.
KTM bought Husqvarna:
Indian two-wheeler marquee holds 48 per cent share in the Austria-based KTM, which bought Swedish brand Husqvarna from its rival company BMW Motorrad. KTM overtook BMW to become the largest bike maker in Europe last year. Latest reports suggest that KTM-Bajaj is now planning to roll out entry-level Husqvarna motorcycles from Bajaj Auto's Chakan plant. The entry-level bikes will be positioned above the Bajaj's Pulsar line-up. These bikes will be designed and developed by Bajaj and are expected to feature the same 200cc engine of Pulsar 200NS. Bajaj will Manufacture these bikes locally to achieve pricing advantage.
Stefan Pierer, chief executive, KTM told Business standard, “For the small displacements it could be that Huskys be made at Chakan. We are also thinking and analyzing which displacement makes sense, a 200cc and a touring version for something like the emerging markets; so in the mid-term for sure Huskys can come from the Chakan plant. It will take two years time for the roll out of Huskys from here although the engine in ready, to develop a bike which is a part of other activities, it will take two years. Huskys will be made by Bajaj Auto just like other small displacement KTMs. It could be that the Pulsar, Duke and a Husqvarna be using the same platform."
After the success of the KTM Duke 200 and its Indian counter part Pulsar 200 NS, KTM and Bajaj have moved forward, the duo will shortly roll out the Duke 390, which will be followed by its Bajaj version Pulsar 375 later in the year. KTM has also announced to launch a racing replica of its flagship RC8 superbike in India, which might be called the RC25 and will feature a single cylinder 250cc engine. KTM-Bajaj is already sharing engines, platforms and components for all the brands made in India and the entry of Husqvarna will make the alliance more successful.
Triumph bikes in India:
Century old iconic British bike brand, Triumph entered in India last year in January. Triumph is selling 7 bikes, including Bonneville, Street Triple, Daytona 675, Speed Triple, Tiger 800XC, Storm cruiser and Rocket III Roadster- the world’s largest capacity production bike. Triumph is willing to expand its Indian line-up and also building a new assembly factory in Karnataka, its only third global plant after the UK and Thailand. Triumph is also working on a new 250cc model, which will be sold in emerging markets.
Hyosung-DSK:
Hyosung marked its re-entry with its premium cruiser ST17 last year and after that the South Korean racing specialist Hyosung is continuously expanding its product portfolio in India. Hyosung with its Indian partner DSK Motowheels is investing Rs. 300-400 crore into a new plant in Maharashtra, which will produce 250cc and above motorcycles.
Polaris to launch Victory and Indian brands:
American adventure sport experts Polaris is also planning to launch its premium bike brand Victory in India by the end of this year. Polaris recently bought iconic brand, the Indian, and announced to relaunch the brand, which hasn't sold a single bike after 1962, we are expecting 'Indian' as well in India.
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