 "From 2 to 16 brands in 7 yrs, here's how luxury bikes are clearing speed bumps")
Sunday mornings are hectic for the young scion of one of the largest business conglomerates in South India. He wakes up well before his regular hours and heads out to the scenic East Coast Road in Chennai where he meets up with a band of super bikers; riders of Harley Davidsons, Yamahas, Triumphs and such other iconic brands as they spin their wheels around the city. For brands such as Harley Davidson, Triumph, MV Agusta, Aprilia, Yamaha, Suzuki and others, such clubs are letting them tap into the passion that their brands evoke and build on it. Companies are investing in such clubs and creating an experience around their brands to push their high-end bikes to a larger number of consumers.
It has not been a smooth ride for the brands however. Last year superbike makers, who sell everything from race-oriented performance bikes to street bikes to tourers to intercity cruisers, saw their first slowdown as consumers shunned high-ticket items. The segment costing Rs 5 lakh and above, recorded sales of 4,089 units during April-October 2015, a fall of nearly two per cent against 4,158 units sold in the corresponding period the previous year, according to Society of Indian Automobile Manufacturers (SIAM).
Lessons were learnt and the companies fine-tuned their pitch. Vikram Pawah, managing director, Harley-Davidson India says, "We have helped people see the relevance of Harley-Davidson to their own lives. With every year passing, consumers have come for authentic and inspiring ways of self-expression - be it through our motorcycles, motor clothes, customisation options or rallies and events."
For instance, Triumph's products attract minimum of Rs 8,000 EMI and around 60 per cent are sold through the financing option."
Brand rush
Among the early entrants were Japanese brands Yamaha and Suzuki (2007). From two, seven years ago, there are around 16 today; the most recent ones Italian MV Agusta and Aprilia. The BMW Motorrad is expected to launch next year. Analysts say that the category expansion has been driven by the entry of big names into the segment.
The companies say that digital media has helped them as has their focus on delivering an experience rather than a product. Pawah says, "Since our start in India seven years ago, we focused on building our brand and developing a strong leisure motorcycling culture." According to SIAM, Harley Davidson sales have been flat in the first half of 2016-17. However, other brands have seen a sharp rise. Triumph sales have risen by 11.69 per cent, Royal Enfield by 34 per cent and Kawasaki India by 42 per cent in the same period. But Pawah says, "We continue to receive unparalleled enthusiasm for the brand. SIAM has consistently placed us as the undisputed market leader in the segment of 600+cc motorcycles. Our market share currently stands at 60 per cent, which is significantly more than the combined share of other players."
Network pull
Pankaj Dubey, managing director, Polaris India (Indian Motorcycles brand) wrote recently that bike clubs are helping riders expand their professional circles of influence. Like him there are many who believe that the clubs are a great way to mix pleasure with business and add value to the brand.
Dubey believes that by 2040, the commuter motorcycle segment will be at end of its product life cycle in India. The current commuter segment is likely to migrate to economy cars, with the growth of income levels and per capita income in India. This will pave the way for a larger market size for luxury bikes.
His sentiments are echoed by many who cite recent reports by Assocham that forecast that the Indian luxury market is expected to cross $18.3 billion by 2016 from the current $14.7 billion. The luxury motorcycle market is expected to grow by 20 per cent CAGR (compounded annual growth rate) in the next ten years.
Crossing the price hurdle
Triumph, which forayed into India in 2013, said that it has a market share of around 29 per cent in the segment. It has around 3,300 customers and its bikes sell at between Rs 7-23 lakh. Polaris India aims to clock 50 per cent growth in sales this year and corner 15 per cent market share in the 1,200cc-plus segment. Its bikes come with tags between Rs 13-38 lakh (ex-showroom, Delhi).
Given the high price tag, companies rely heavily on easy financing options, especially in small towns. Pawah adds, "The tier-II market has witnessed a sudden upsurge in leisure motorcycling."
Triumph says it is looking at entering the used bikes segment in a year's time to further sales. Another challenge has been service and spare parts availability. However these issues are being dealt with and also, secondary, believe many. According to Pawah, "Owning a Harley-Davidson stems from a place of desire, you want one, you don't necessarily need one." All else pales in significance.
It has not been a smooth ride for the brands however. Last year superbike makers, who sell everything from race-oriented performance bikes to street bikes to tourers to intercity cruisers, saw their first slowdown as consumers shunned high-ticket items. The segment costing Rs 5 lakh and above, recorded sales of 4,089 units during April-October 2015, a fall of nearly two per cent against 4,158 units sold in the corresponding period the previous year, according to Society of Indian Automobile Manufacturers (SIAM).
Lessons were learnt and the companies fine-tuned their pitch. Vikram Pawah, managing director, Harley-Davidson India says, "We have helped people see the relevance of Harley-Davidson to their own lives. With every year passing, consumers have come for authentic and inspiring ways of self-expression - be it through our motorcycles, motor clothes, customisation options or rallies and events."
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Brands also benefited from an expanding array of financing options. Vimal Sumbly, managing director of Triumph India adds that there has also been a surge in bike enthusiasts among high income groups. Also, he adds, "More customers are opting for EMI options.
For instance, Triumph's products attract minimum of Rs 8,000 EMI and around 60 per cent are sold through the financing option."
Brand rush
Among the early entrants were Japanese brands Yamaha and Suzuki (2007). From two, seven years ago, there are around 16 today; the most recent ones Italian MV Agusta and Aprilia. The BMW Motorrad is expected to launch next year. Analysts say that the category expansion has been driven by the entry of big names into the segment.
The companies say that digital media has helped them as has their focus on delivering an experience rather than a product. Pawah says, "Since our start in India seven years ago, we focused on building our brand and developing a strong leisure motorcycling culture." According to SIAM, Harley Davidson sales have been flat in the first half of 2016-17. However, other brands have seen a sharp rise. Triumph sales have risen by 11.69 per cent, Royal Enfield by 34 per cent and Kawasaki India by 42 per cent in the same period. But Pawah says, "We continue to receive unparalleled enthusiasm for the brand. SIAM has consistently placed us as the undisputed market leader in the segment of 600+cc motorcycles. Our market share currently stands at 60 per cent, which is significantly more than the combined share of other players."
Network pull
Pankaj Dubey, managing director, Polaris India (Indian Motorcycles brand) wrote recently that bike clubs are helping riders expand their professional circles of influence. Like him there are many who believe that the clubs are a great way to mix pleasure with business and add value to the brand.
Dubey believes that by 2040, the commuter motorcycle segment will be at end of its product life cycle in India. The current commuter segment is likely to migrate to economy cars, with the growth of income levels and per capita income in India. This will pave the way for a larger market size for luxury bikes.
His sentiments are echoed by many who cite recent reports by Assocham that forecast that the Indian luxury market is expected to cross $18.3 billion by 2016 from the current $14.7 billion. The luxury motorcycle market is expected to grow by 20 per cent CAGR (compounded annual growth rate) in the next ten years.
Crossing the price hurdle
Triumph, which forayed into India in 2013, said that it has a market share of around 29 per cent in the segment. It has around 3,300 customers and its bikes sell at between Rs 7-23 lakh. Polaris India aims to clock 50 per cent growth in sales this year and corner 15 per cent market share in the 1,200cc-plus segment. Its bikes come with tags between Rs 13-38 lakh (ex-showroom, Delhi).
Given the high price tag, companies rely heavily on easy financing options, especially in small towns. Pawah adds, "The tier-II market has witnessed a sudden upsurge in leisure motorcycling."
Triumph says it is looking at entering the used bikes segment in a year's time to further sales. Another challenge has been service and spare parts availability. However these issues are being dealt with and also, secondary, believe many. According to Pawah, "Owning a Harley-Davidson stems from a place of desire, you want one, you don't necessarily need one." All else pales in significance.