The new motorcycles will be offered in the 350cc-500cc segment. This will make them the smallest and most affordable products in the portfolio of US-based Harley-Davidson and British motorcycle maker Triumph. Triumph showcased the new motorcycle at an event in London on Tuesday. An India launch will happen in July.

The new motorcycles will let Bajaj Auto and Hero MotoCorp, two of India’s biggest motorcycle makers, intensify their competition with Royal Enfield, which had a nearly 93% share of the 250cc – 500cc motorcycle market at the end of the last financial year.

“Triumph and Harley -Davidson are strong, aspirational brands, but they’ve so far been catering to only a very niche customer at rather unaffordable prices; now with new products with lower displacements and expected prices between ₹2.5- 3 lakh, they can make the consideration set of the aspirational lifestyle buyer,” a two-wheeler industry executive said requesting anonymity.

Royal Enfield also held a dominant share of nearly 70% in the 350cc-500cc segment, which represents a modest yet substantial 53,000 units in annual industry sales. This is noteworthy given the high selling prices and profits in this segment. The 250cc-500cc market comprised nearly 770,000 units in FY23.

It is this segment that Bajaj -Triumph’s upcoming Street and Scrambler, as well as Hero MotoCorp-Harley Davidson’s X440 will seek to compete with Royal Enfield models such as Classic 500 and Himalayan, besides the Yezdi Scrambler and Honda CB350RS. Bajaj Auto, with its Austrian joint venture partners KTM and Husqvarna, as well as its Dominar brand, already has a presence in the premium lifestyle motorcycle market and is the second-largest in the category with a 30% share after Royal Enfield in FY23.

It will, however, be Hero MotoCorp’s debut in this segment as it will look to leverage the cult American motorcycling brand Harley-Davidson to elevate its positioning as a premium motorcycle maker.

“Hero MotoCorp’s maiden Harley-Davidson launch and Bajaj’s Triumph launch may not necessarily be immediate volume or earning drivers, but the success and market acceptance of these vehicles will build a positive momentum for the brands and aid their multiples, which have been under pressure for some time,” said Jay Kale, senior vice president, Elara Capital.

The two-wheeler industry executive cited above said, “We have seen products from Honda and Kawasaki in this segment but they couldn’t make a big dent in Royal Enfield’s sales single-handedly as the former is a much stronger brand. This time, with Indian-made Triumph and Harleys though, it could be different and can present a more realistic competition than RE has had so far. Even if they’re only half-successes, their combined sales will take some growth out of RE, besides contributing to the growth of the segment”.

According to industry estimates, the 350cc-500cc motorcycle segment is poised to grow 15% in FY24, followed by 12% and 10% each over the subsequent two years, representing a faster pace of expansion than the overall motorcycle market that is expected to grow at 11% this fiscal, with growth moderating to 8% and 5% in the following two years.

In India, Harley-Davidson motorcycles currently have a starting dealership price of ₹17.49 lakhs for the 975cc Nightster, while Triumph starts at ₹8.12 lakhs for the Trident 660 roadster.

Updated: 27 Jun 2023, 11:04 PM IST