The two companies surprised the industry by unveiling their most affordable models globally in the largest motorbike market. In the past, their expensive imports struggled to gain market share. However, this time they are manufacturing the bikes in India with domestic partners, resulting in prices below Rs 2,33,000.
“These are aspirational brands,” said Kotak Securities auto analyst Rishi Vora. “Previously, the price points for Harley and Triumph were not accessible to potential buyers. But now, they are.”
This simultaneous change in strategy by the two legendary brands poses a significant challenge to Royal Enfield’s virtual monopoly in the high-end motorcycle segment. It comes at a time of increased spending in India on premium products across various categories, including mobile phones and cars.
The launch of the new models affected the stock price of Eicher Motors, the maker of Royal Enfield, which dropped as much as 12.5%. Brokerages have also expressed concerns about potential earnings risk for at least the next two years, despite the fact that Harley-Davidson and Triumph currently have much smaller sales compared to Royal Enfield.
According to Kotak, the pricing and brand cachet of the Harley-Davidson X440 and Triumph Speed 400 could reduce Royal Enfield’s share of India’s 250 cc-plus segment from over 90% to 75%. Royal Enfield’s closest competitor is the Classic 350, starting at Rs 1,93,000. Eicher declined to comment on this matter.
Harley-Davidson, which previously imported its ultra-premium motorcycles to India, spent ten years in the market before leaving and closing down most of its dealer network in 2020. It sold fewer than 30,000 motorcycles, whereas Royal Enfield sells that many bikes each month. However, the company has now partnered with Hero MotoCorp to develop and sell a range of Harley-Davidson branded bikes in India, starting with the X440.
Similarly, Triumph, which used to sell about 1,200 motorcycles annually in India, teamed up with Bajaj Auto in 2020 to manufacture mid-capacity bikes, with Bajaj handling distribution. Triumph has received orders for over 14,000 Speed 400 bikes, surpassing their total India sales of the past decade.
While the premium segment accounts for less than 10% of overall motorcycle sales in India, the buzz around these new models is evident in the increased Google searches for Harley-Davidson and Triumph in the country.
“The positive reviews and the attractive price pushed me to immediately book the Triumph,” said Sathish Rao, a software professional and member of a motorcycle club.
Improved financing options have also made premium bikes more accessible to lower-income buyers, according to HDFC Securities analyst Aniket Mhatre.
“Our starter bikes used to be around 100 cc to 200 cc at most. But I think that’s going to change now. I feel like people are going to jump straight to a 400 cc,” said motorcycle content creator Priyanka Kochhar, who has tested both of the new bikes.