The battle for premium motorcycle segment is heating up with the entry of Harley Davidson X440, developed in collaboration with Hero MotoCorp, and Triumph-Bajaj's Speed 400 and Scrambler 400 X.
The segment is currently dominated by Eicher's Royal Enfield. Experts think that the entry of these two premium segment bikes could help in expanding the segment which is meagre at the moment. They think that the scope for expanding the market is there which could absorb the two launches.
Basudeb Banerjee of ICICI Securities told CNBC-TV18 that the Eicher Motors market share being at over 90% will feel the pressure from these two launches but anybody at 90% market share can't sustain at those levels.
Jay Kale of Elara Capital backed the assessment that this would lead to market expansion with three options now. The competition from Triumph and Harley will restrict Royal Enfield's ability to take price hikes.
Hero MotoCorp Ltd launched Harley-Davidson X440, a mid-size bike developed in collaboration with the American major. The competitive pricing starting at Rs 2.29 lakh represents a 15 percent premium compared to the Royal Enfield Classic 350cc and Meteor 350cc.
Analysts also believe that Hero MotoCorp's extensive dealer network and the potential for increased production volume will contribute to the success of the bike.
"We believe this will be an attractive proposition for customers, especially if the X440 performs well on the roads. Our estimates factor in volumes of 10,000 units per month for Hero from jointly developed products with Harley, versus RE's total domestic volumes of 61,000 units per month in FY23 and 77,000 in FY25 (perojected)," Jefferies India said in its recent note.
Triumph-Bajaj on July 5 launched the Speed 400 bike at an ex-showroom price of Rs 2.33 lakh, whereas, the price reveal for its other premium offering, Scrambler 400 X, has been postponed. Triumph Motorcycles and Bajaj will jointly roll out the motorcycles today, amping up the Indian bike space by several notches.
Online pre-bookings for both motorcycles kicked off in India last month, with a Rs 2,000 fully-refundable payment window, after their world premiere in London. Designed and manufactured in Hinckley, the United Kingdom, both motorcycles come with a two-year unlimited mileage warranty and a 16,000 km service interval.
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