Harley-Davidson, Triumph in first gear of challenge to Royal Enfield's India reign
Harley-Davidson and British rival Triumph have revved up India's premium motorcycle market with aggressively priced models that analysts said could dent the over half-century dominance of local champion Royal Enfield. The duo surprised the industry this month by unveiling their cheapest models globally in the largest motorbike market by sales, where their expensive imports have long struggled for market share. This time, they are making the bikes in India with domestic partners to bring prices below Rs 2,33,000.
«These are aspirational brands,» said Kotak Securities auto analyst Rishi Vora. «For people who were thinking of buying a Harley or Triumph earlier, the price points weren't accessible. Now, they are.» The similar, near-simultaneous change in approach by two of the industry's most storied brands represents one of the biggest challenges to Royal Enfield's virtual monopoly in high-end motorcycles, coming at a time of rising spending in India in premium segments across categories as varied as mobile phones and cars.
Such is the threat, the back-to-back launches pushed Royal Enfield maker Eicher Motors' stock price down as much as 12.5% and prompted brokerages to flag earnings risk for at least two years — even though Harley-Davidson and Triumph sales currently pale in comparison to those of Royal Enfield. The pricing and brand cachet of the Harley-Davidson X440 and Triumph Speed 400 could cut Royal Enfield's share of India's 250 cc-plus segment to 75% from over 90%, Kotak said. Royal Enfield's nearest model is the Classic 350 starting at Rs 1,93,000.
Eicher declined to comment ahead of its quarterly earnings announcement. Harley-Davidson did not respond to a request for comment. Triumph said it would significantly
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