Mumbai: Demand for two-wheelers is recovering at a quick tempo and most producers are inserting bets on the premium vary owing to traction from the leisure and hobby segment. Hero Motocorp, Honda Motorcycles and Scooters India (HMSI) and Royal Enfield are tweaking their premium product portfolio.
Bajaj Auto is pushing its Husqvarna, KTM, Dominar, Pulsar and deliberate Triumph launch. Pent-up demand, in addition to disposable incomes, are serving to the premium class.
HMSI will give attention to the middleweight class because it creates a separate distribution chain known as ‘Big Wings’ for premium bikes. It will embody assembled, imported and made in India two-wheelers such because the CBR1000 RR, Fireblade, Forza 300, CB300 R and CBR 650R. HMSI noticed top-end variants develop sooner in each product segment, said YS Guleria, director, gross sales and advertising and marketing, HMSI.
TVS Motor Co additionally has increased publicity to premium bikes. Building on a centered technique of making a strong portfolio of premium merchandise, Hero MotoCorp, the world’s largest producer of bikes and scooters, not too long ago commenced dispatches of the Hero Xtreme160R, priced at Rs 99,950.
Malo Le Masson, international product planning head, Hero MotoCorp, said, “The Hero Xtreme 160R is targeting to win the urban race. We now offer a compelling and competitive line-up of premium motorcycles, from street naked to sport with the Xtreme 200S; from adventure with XPulse 200 to casual touring with the XPulse 200T.”
Lalit Malik, chief industrial officer, Royal Enfield, said, “Premiumisation in the Indian automobile industry is a longterm phenomenon with a lot of potential in two-wheelers. We believe there will be a sharper recovery once the supply chain stabilises.”
For FY20, Royal Enfield’s market share went up from 25% to 27% within the above-125cc segment. In the 250-750cc segment, Royal Enfield has a 96% market share.
Experts preserve that the premium sub-segment has increased profitability due to premium pricing for increased displacement bikes and the contribution of top-end variants going up by 5-10%. “There is a growing segment of consumers that is looking to own a premium/luxury two-wheeler. This will continue to drive premiumisation, albeit at a slower pace in the short term,” said Vinay Raghunath, associate, automotive sector chief, EY India.
Bajaj Auto expects the sports and super-sports segments to develop in the long term, pushed by city prospects under 40 years of age. The latter (above 250cc) is probably going to develop due to prosperous consumers, and Bajaj plans launches for a wider portfolio on this segment in FY21.
KTM’s volumes in India grew 26% — making it the one main two-wheeler model to attain double-digit progress in FY20 — pushed by new merchandise in 125cc and 790cc, together with the refreshed Duke200 and Duke390, said to latest report by Motilal Oswal Institutional Equities. For the auto trade, wanting to work itself out of a downturn, this might not have come at a greater time, say consultants.
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