INDIA REPORT
The dominance of Royal Enfield in the mid-segment of the premium motorcycle market (300cc-500cc) could be facing challenges from upcoming products. The Triumph Speed 400, a result of a joint development effort between Triumph and Bajaj Auto, and the Harley-Davidson X440, developed through a collaboration between Hero MotoCorp and Harley Davidson, are set to compete in this market segment.
In response, Royal Enfield plans to introduce three new models in the 350-450cc range within the next year.
The Indian motorcycle market has witnessed a favorable trend towards high-end bikes. The phenomenon of premiumization has gained momentum due to increasing income levels, a growing young population, shifting preferences, and a surge in product launches.
As a result, a growing number of buyers are now inclined towards high-end bikes. This market shift has prompted motorcycle manufacturers to introduce an expanded range of products in the higher cc segments.
Source: Power Systems Research OE Link Database
In the 350cc and above engine category, the market share of Royal Enfield is approximately 85%-90%. However, the company has been steadily increasing its sales volume in other categories through the introduction of new products.
Source: Hindu BusinessLine Read The Article
We believe the segment of above-300cc motorcycles is expected to experience heightened competition in the upcoming months. However, it will be a difficult task for new bikes to catch the market leader, Royal Enfield. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
