premium motorcycle market, india, 2014

Premium Motorcycle Market, India, 2014

Motorcycle Market >500c.c.

Premium Motorcyle Market, India, 2014 1

Definition of Bike Styles & Categories

• Standard/ Commuter bike Segment – Foot pegs and shifter are located below waist creating comfortable upright riding

position

– Handlebars are laid out as to not to put too much weight on wrists of the rider

– Sheet metal would be limited to tanks, under seat and along tail lamp

– Engine would have exposed look & weight distribution is balanced

– Purpose of the bike would be to enable the rider to commute between two points with ease and minimum cost

• Cruisers/Choppers/ Bobbers/ Tourer bike Segment – Foot pegs and shifter are located in front of the waist creating laid back position

– Front fork would be kicked out creating large rake, distance between frame and the wheel

– Handlebars are laid out as to stretch the arms to maximum, hands would be placed almost in line with shoulder level or above it

– Seating position would ensure maximum pressure on the tailbone



• Cruisers/ Choppers/ Bobbers/ Tourer bike Segment (Contd…) – Engines are tuned to deliver low end grunt, hence under square low revving engines

are preferred

– Sheet metal is again limited to tank, under seat area and tail lamp area

– Purpose of the bike is to provide a lifestyle of easy riding to the bike rider

– Choppers have large rake in front wheel

– Bobbers have their fenders cut out keeping them small in length compared to normal cruiser

– Cruiser Tourer have front end windscreen on a Cruiser body

– Engine capacity is usually bigger for relaxed torque production

– Bikes are usually designed to be comfortable for long distance highway riding

• Sports/ Super Sports/ Hyper Sports/ Tourer/ Naked bike Segment – Foot pegs and shifter are located in behind the waist creating leaning forward

position

– Maximum pressure is on the writs of the rider as his upper body weight leans forward



• Sports/ Super Sports/ Hyper Sports/ Tourer/ Naked bike Segment (Contd…) – Handlebars are small keeping the requirement of minimum body drag and leaning

body towards front

– Sheet metal is elaborate with front fairing, body parts covering rider with fairing and sheet metal

– Engines are high revving and thus usually are under square in architecture

– Bikes are typically for road usage with almost zero off road capability

– Hyper Sport bikes are have much higher engine capacity and thus bike capability

– Naked bikes would not have the elaborate sheet metal unlike sports bikes

– Naked bikes are meant for city riding hence the sheet metal is missing

– Likewise sports bikes they are supposed to provide maximum acceleration and speed

– Tourers’ have much relaxed riding position, alike standard bike & front windscreen

– However, rest everything parameter would be sports bike like

– Engine ECU is mapped for relaxed long highway cruising at high speeds



• Sports/ Super Sports/ Hyper Sports/ Tourer Naked bike Segment (Contd…) – Tourers have much relaxed riding position, alike standard bike & front windscreen

– However, rest everything parameter would be sports bike like

– Engine ECU is mapped for relaxed long highway cruising at high speeds

• Enduro/ Dual Purpose/ Moto bike Segment – Foot pegs and shifter are situated below the wait creating a natural, comfortable

riding position

– Handlebar position enables rider to place hands below the shoulder level

– Seating height however is much higher to accommodate long suspension travel

– Sheet metal is minimalistic, similar to standard bikes

– Engine would have low end grunt for good acceleration for off road requirements

– Tyres would be off road tyres having blocks jutting out of the base to provide grip in lose surface



• Enduro/ Dual Purpose/ Moto bike Segment (Contd…) – Suspension would have long travel to enable bike to travel at good speeds in uneven

terrain

– Enduro version usually has bigger fuel tank for long distance travel & side bags to keep stuff for travel


Bajaj Auto Ltd 9%

H-D Motor Company

India Pvt Ltd 49% Honda

Motorcycle & Scooter India (Pvt)

Ltd 1%

India Yamaha

Motor Pvt Ltd 0%

Royal Enfield (Unit of

Eicher Ltd) 25%

Suzuki Motorcycle

India Pvt Ltd 4%

Others - Imports + Triumph

12%

Annual Sales High Capacity Motorcycle Market, India, FY'2013


Sports Touring

0%

Cruisers Touring

1%

Café Racer 28%

Sports 13%

Cruisers 56%

Naked/ Roadster

1%

Sports 1%

Annual Sales High Capacity Motorcycle Market, India, FY'2013

High Capacity Motorcycle segment in India Brand & Bodystyle wise

• HD India today by far us the market leader • As the result, Cruiser body style is the largest selling body style in India currently • Café Racer body style recently launched by RE has sold well and numbers are large due to lower price point • Sports body style is the next best selling body style in India

Body style wise distribution


Cruiser

Café Racer

Sports

Touring Cruiser/ Bagger

1907 Units 944 Units 485 Units 16 Units FY’2014 Annual Sales

• This category was non existent in Import Era

• Kick started by Harley Davidson Motor India (Local manufacturing)

• Acquisition price, Brand pull and extensive dealership network brings volumes for HD which is the leader in this segment

• Café Race is a new category

• Kick Started by RE, to focus on Export & Domestic market

• One of the best motorcycles by RE

• Fairings are worshiped in India

• Imports consisted primarily of this body style

• Baggers or Touring Cruises are top of the line with high acquisition price, limiting its sales potential

• Strong RE network is a strong plus

High Capacity Motorcycle segment in India (1/2)


10 15 20 130 160 80

620

117 270

20 40 80 170 50 10 40

30

656

1633

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY'2004 FY'2005 FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012 FY'2013

Superbike Annual Sales, India, FY’2004-13

Above 500cc & Below 800cc Above 800 cc

An

nu

al S

ale

s U

nit

s

Imports Era, most of the bikes imported through Transfer of Residence Route

Local production begins in India, Market explodes

• Indian High Capacity Motorcycle market consisted of Imports in absence of local production • Most of the imports were brought under ‘transfer of residence route’ • However, complicated import procedures & location based taxation meant limited market for this segment • Honda, Suzuki, Yamaha, Kawasaki, Ducati brands sold products through limited sales network limited to

metros only • For Japanese brands, the focus was always on below 250cc category in motorcycle segment

Unit sales till 2010 are Imports, FY’2011 onwards, unit sales are SIAM data

High Capacity Motorcycle segment in India (2/2)


10 15 20 130 160 80

620

117 270

20 40 80 170 50 10 40

30

656

1633

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY'2004 FY'2005 FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012 FY'2013

Superbike Annual Sales, India, FY’2004-13

Above 500cc & Below 800cc Above 800 cc

An

nu

al S

ale

s U

nit

s

Imports Era, most of the bikes imported through Transfer of Residence Route

Local production begins in India, Market explodes

• Ducati was present through its importer who has now been discontinued • Every Premium Motorcycle brand worked on Import and Sell business model • However, the entry of Harley Davidson & its decision to produce Motorcycles locally changed the game • Triumph Motorcycles has initiated local production for its High Capacity Motorcycles • Piaggio has expressed the same plan for its Aprilia & Moto Guzzi brand

Unit sales till 2010 are Imports, FY’2011 onwards, unit sales are SIAM data

premium motorcycle market, india, 2014

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