Why The Royal Enfield Interceptor 650’s Pricing Is Crucial For Its Success In India

In the advent of the 650 twins’ launch, we have a look at the speculated pricing of the Interceptor 650 and if the Harley-Davidson Street 750 will pose a threat to it

Royal Enfield is set to launch the Interceptor 650 quite soon and in doing so will directly compete with the well established entry-level Street 750 from Harley-Davidson. While both bikes are decently equipped, Harley has a lot going for it in terms of build quality, reliability and the brand itself. So, the only way Royal Enfield would be able to compete in the mid-displacement cruiser segment would be to price the bike competitively, which would sway even Harley customers into buying a Royal Enfield.

But first, what does each manufacturer offer in terms of the overall buying experience? Let's have a look at Harley first since it's already well established in the mid-displacement cruiser segment.

Harley-Davidson as a brand stands for freedom and self expression -- where cultures, gender and race don’t matter. All that matters is the feeling of being liberated and passion for cruising the open road. As for the bikes, the Milwaukee-based luxury two-wheeler manufacturer sells modern cruisers and classic tourers which can be further personalized to suit each rider's taste.

Furthermore, Harley also offers accessories, gears and apparel for both rider and their pillions. But most importantly, the company organizes riding experiences and events where Harley riders from all walks of life come together to celebrate and talk motorcycles.

Moving onto Royal Enfield, ever since the brand was taken over by Eicher Motors, Siddhartha Lal, CEO of the company, has taken a similar approach towards marketing these classic motorcycles. Like Harley-Davidson, the bikemaker sells leisure and adventure touring motorcycles, albeit at much more accessible price points.

And, just like the American bikemaker, Royal Enfield also offers customers the chance to personalize their motorcycles with a variety of accessories. Although, unlike Harleys, these bikes are classified as retro motorcycles with a hint of modern elements. And, the company thrives on the fact that it has a cult following where riders have a sense of belonging to an exclusive community.

Much like Harley-Davidson, Royal Enfield holds annual events such as the Himalayan Odyssey, The Tour of Rann of Kutch, The Tour of NH 17 (Mumbai to Goa), the Tour of Rajasthan and the Southern Odyssey. It also organizes an annual biking festival in Goa, known as Rider Mania, which attracts Royal Enfield riders and enthusiasts from all over.

With that out of the way, we can talk more about the bikes in question. The Royal Enfield Interceptor 650 will go against the Harley-Davidson Street 750 when launched. With the Street 750, what you get is a modern cruiser that’s reliable, has superior build quality in comparison, and a sense of premiumness. Something Royal Enfield isn’t particularly known for.

Coming to the powertrain, the Street 750 uses a 749cc liquid-cooled, Revolution X V-Twin motor that puts out 59Nm of torque with a weight of 223kg. In comparison, the Interceptor draws power from a 648cc, parallel-twin, fuel-injected, air-oil cooled engine that produces 47.6PS of power at 7100 rpm and 52Nm of torque at 5250 rpm. The bike tips the scale at 203kg.

While Harley-Davidson doesn’t mention power figures, it seems like both the bikes are pretty evenly matched on paper. While that's all we can say as of now in regards with the way they perform, we will be riding the Royal Enfield twins this September end which would give us a clearer picture of how it stacks up against the Harley.

What’s noteworthy is the fact that most Royal Enfield customers would aspire to buy a Triumph or Harley at some point in their lives. With that in mind, Royal Enfield needs to price the Interceptor 650 in such a way that it undercuts the Street 750’s price by a good margin. Moreover, Royal Enfield is banking heavily on its existing fan base and buyers to ensure sales.

A higher price tag, say above Rs 5 lakhs, would not only put off potential buyers but they'd rather consider stretching their budget and get a Street Rod instead. A bike that offers better equipment and superior riding dynamics, looks sportier and produces more power and torque for a premium of around Rs 1.3 lakhs.

Hence, we expect Royal Enfield to price the Interceptor 650 at Rs 3 lakh, which should put it to an estimated Rs 3.5 lakh on-road Delhi. Only if this price point is met will the pricing work in Royal Enfield's favour. Because the Street 750 is priced at Rs 5.25 lakh (ex-Delhi), which brings it to an on-road price of Rs 5.85 lakh.

That said, Royal Enfield needs to get the quality and mechanical issues right on the 650cc twins, as another failure like the Himalayan could prove catastrophic for the firm and its reputation.

If everything works out in favour of the Chennai based manufacturer, not only will they give a tough fight to the Harley-Davidson’s but will also attract buyers from other genres to opt for the Interceptor 650.