Harley-Davidson, Ducati to ride into Indian market

RELATED NEWS Ducati opens showroom in Mumbai

The Indian bike lover's dream seems to be coming true. Speed enthusiasts ogling superbikes in glossy magazines could now call these mean machines their own, as niche players such as Harley-Davidson and Ducati ride into the country to join the major global brands present here.

The bikes do not come cheap; these niche brands are priced well above most mid-size cars, yet the companies remain bullish about the market.

In the last two years, major bike makers such as Yamaha, Honda, Suzuki and Kawasaki have launched their premium range in the country.

Last week, Fiat-owned specialised bike manufacturer Ducati set up its first shop in India. With bikes priced between Rs 9.6 lakh and Rs 43.37 lakh, Ducati aims to open six showrooms by 2010.

One of the oldest bike manufacturers in the world, US-based Harley-Davidson aims to announce its range and pricing for India at the Auto Expo in January. "We will be launching our dealerships initially in five cities and have already got about 80 applications for it," said Mr Sanjay Tripathi, Director - Marketing, Harley-Davidson India. The company will also be starting the Harley Owners Group (HOG) in the country. Popularly referred to as the HOG. world over, the owners' association would organise cross-country adventure rides.

Yamaha was the first to step into this market with its 1,000 cc superbike R1 and the 1,700 cc sports bike MT01 in December 2007. Priced at Rs 12.5 lakh, it has sold about 150 units till date. It launched the 1,700 cc V-MAX in August this year, priced at Rs 20 lakh.

"We have been out of stock for the last three months for both the R1 and the MT01," said Mr Pankaj Dubey, National Business Head, India Yamaha Motors Ltd.

Suzuki entered the market with the Rs 12.5-lakh Hayabusa and Intruder in November last year. According to Atul Gupta, Vice-President - Sales and Marketing, Suzuki Motorcycle India, it has sold 105 units to date.

Kawasaki, in partnership with Bajaj Auto , has launched the Ninja 250R. The bike, at 250 cc, is a sobered down version of its much more powerful namesakes sold abroad. At Rs 3 lakh, it is much more affordable, but doesn't quite qualify in the superbike range. Assembled at Bajaj's Chakan plant, it has sold about 127 units. The company also has plans to bring in KTM bikes with capacities of above 690 cc.

Adding to the appeal

Says Gupta, the removal of local homologation rules for bikes above 800 cc capacity has been a huge help. "We can now bring in these bikes without modifying them to local conditions, saving both time and costs."

Other reasons for the spate of launches include rising disposable urban incomes and improved road infrastructure.

The Society of Indian Automobile Manufacturers (SIAM) puts the size of the market for premium bikes at about 500 units a year. "It should increase to about 1,000 units per year by 2015," said Mr Sugoto Sen, Director, SIAM. He added that a boost in auto sales in the premium category generally comes when per capita income rises above USD 1,000. For India this would be around 2014.
Taken from Business Line