Mumbai: Need for two-wheelers is recovering at a speedy tempo and most manufacturers are positioning bets on the premium vary owing to traction from the leisure and pastime segment. Hero Motocorp, Honda Bikes and Scooters India (HMSI) and Royal Enfield are tweaking their premium product or service portfolio.
Bajaj Car is pushing its Husqvarna, KTM, Dominar, Pulsar and planned Triumph launch. Pent-up demand from customers, as properly as disposable incomes, are encouraging the premium class.
HMSI will target on the middleweight class as it makes a different distribution chain called ‘Big Wings’ for premium motorcycles. It will include things like assembled, imported and manufactured in India two-wheelers this sort of as the CBR1000 RR, Fireblade, Forza three hundred, CB300 R and CBR 650R. HMSI saw top-conclusion variants grow speedier in each and every product or service segment, explained YS Guleria, director, profits and advertising, HMSI.
TVS Motor Co also has better exposure to premium bikes. Making on a focused strategy of making a sturdy portfolio of premium merchandise, Hero MotoCorp, the world’s premier company of motorcycles and scooters, just lately commenced dispatches of the Hero Xtreme160R, priced at Rs 99,950.
Malo Le Masson, international product or service planning head, Hero MotoCorp, explained, “The Hero Xtreme 160R is concentrating on to win the urban race. We now offer you a compelling and competitive line-up of premium motorcycles, from avenue naked to sport with the Xtreme 200S from experience with XPulse 200 to relaxed touring with the XPulse 200T.”
Lalit Malik, main commercial officer, Royal Enfield, explained, “Premiumisation in the Indian automobile industry is a longterm phenomenon with a whole lot of probable in two-wheelers. We believe there will be a sharper recovery the moment the offer chain stabilises.”
For FY20, Royal Enfield’s sector share went up from twenty five% to 27% in the over-125cc segment. In the 250-750cc segment, Royal Enfield has a ninety six% sector share.
Specialists maintain that the premium sub-segment has better profitability thanks to premium pricing for better displacement motorcycles and the contribution of top-conclusion variants heading up by five-10%. “There is a rising segment of shoppers that is searching to own a premium/luxury two-wheeler. This will go on to push premiumisation, albeit at a slower tempo in the limited term,” explained Vinay Raghunath, associate, automotive sector leader, EY India.
Bajaj Car expects the sports activities and tremendous-sports activities segments to grow in the extensive run, driven by urban clients beneath 40 years of age. The latter (over 250cc) is likely to grow thanks to affluent customers, and Bajaj options launches for a broader portfolio in this segment in FY21.
KTM’s volumes in India grew 26% — producing it the only important two-wheeler brand to achieve double-digit expansion in FY20 — driven by new merchandise in 125cc and 790cc, along with the refreshed Duke200 and Duke390, explained to recent report by Motilal Oswal Institutional Equities. For the auto industry, searching to get the job done by itself out of a downturn, this could not have arrive at a better time, say experts.
Also Examine: Riding by way of crisis: How premium motorbike segment is coping up?