Harley, Triumph give a rough ride for Royal Enfield on Google searches

Can the US bike maker Harley-Davidson (HD) and British rival Triumph beat half-century dominance in the Indian market with the iconic Royal Enfield (RE)? This was the question doing the rounds after the two global majors launched their 400cc motorcycles in India during the first week of July, at an aggressive price range. 

Well, if Google search can be criteria to assess the reach of each of these brands, the international bike majors are giving tough competition already with the two brands garnering similar responses to RE’s Hunter 350 launch in August last year and even competing with Classic 350, said a report by Motilal Oswal on Tuesday.

This has to be considered taking into account the monopoly of around 92 per cent market share in domestic sales in the 250-500 cc range, contributing to 200,487 units out of the total 218,511 units sold last year, as per data shared by the Society of Indian Automobile Manufacturers (Siam). This makes it difficult for any player to compete with Royal Enfield in the Indian market segment. In the 350-500 cc category also it has a 67 per cent market share.

According to the report, the search data for HD X440 and Triumph 400 indicate a very strong start for these aspirational brands, which have now become more accessible to consumers. “While the initial spurt for any such launch is expected, even after a fortnight of launch the intensity of the search is at similar levels as RE Classic 350 (Exhibit 1). Between HD X440 and Triumph 400, HD started on a stronger note initially but Triumph caught up and now the search intensity is similar for these brands,” it added.

The share of search between the three motorcycles -- RE Classic 350, HD X440 and Triumph 400 -- has been overwhelmingly in favor of new launches across markets. In key RE markets (with over 90 per cent of its volumes), HD has 44 per cent of search share in the first fortnight of launch followed by Triumph with 36 per cent share. On relative basis, urban-centric states have witnessed more searches for new brands with 43 per cent share for HD and 41 per cent for Triumph as against rural-centric states with 44 per cent share for HD and 30 per cent for Triumph.

“As against the past launches in the same segment, HD and Triumph’s search trends appear to be very much comparable with that of Hunter 350 and substantially stronger than that of Honda CB350 and Jawa motorcycles,” the Motilal Oswal report added. Comparing the two RE brands Classic 350 and Hunter, the latter’s search intensity in the first fortnight of launch was very strong (in line with HD/Triumph) versus Classic 350, enjoying 68 per cent share of searches compared to 32 per cent for Classic 350. However, after the first fortnight, search trends moderated for Hunter with the share of searches at 37 per cent compared to Classic 350 in calendar year 2023 so far. Interestingly, the share of volumes was at similar levels of 37 per cent, the report added.

“Hunter helped RE expand its size of the pie, as volumes of RE 350cc portfolio (ex of Hunter) have been stable at 46,000-47.000 per month. While the new launches of HD and Triumph will also expand the pie of the super-premium motorcycles (>250cc), it may pose a threat to RE 350cc portfolio and curtail its growth,” it added.