Royal Enfield continues to take pleasure in a monopoly within the 200cc to 700cc bike section in India
Rivalry within the mid-segment retro traditional bikes has heated up fairly just a few notches larger in recent times. The section which solely had Royal Enfield bikes on provide just a few years in the past, now has gamers like Bajaj, Jawa, Honda, Suzuki, Yamaha, and many others. Despite this, Royal Enfield has a market share of over 81% within the 200cc-700cc section bikes in India.
Lately we now have seen increasingly new bikes getting launched, with the goal of consuming into the market share of Royal Enfield. Aside from launching bikes in an analogous worth and engine measurement section as Royal Enfield, some rivals are even launching bikes which look just like Royal Enfield.
Benelli launched Imperiale 400. Mahindra shaped Basic Legends to revive Jawa model. And one of many greatest blow / shock got here from Honda Bike India; once they launched the H’Ness CB350 a month and a half again. Amidst this rising competitors Eicher Motors MD, Siddhartha Lal has made a frontal assault.
In an interplay with Occasions of India, Siddhartha has acknowledged that “imitation and making an attempt to repeat doesn’t work”, thus taking a shot at his firm’s rivals. He additional added that his agency is “ten steps forward of the market”. Royal Enfield at present retails 350cc bikes corresponding to Bullet, Basic and Meteor, 410cc Himalayan and 650cc twins Interceptor and Continental GT.
Overseas Manufacturers establishing JVs in India
Rivalry is ready to accentuate in coming years with the three way partnership between American bikemaker Harley Davidson and Indian producer Hero MotoCorp. The latter will develop, manufacture and promote bikes below the previous’s model identify in India which is able to particularly goal the mid-segment displacement bikes.
Though, this isn’t the one three way partnership that can are available future. It’s already recognized that Bajaj had partnered with Triumph to develop bikes below the latter’s identify within the nation which shall be extra India-specific. Each domestically produced Harley and Triumph bikes might generate nice curiosity within the premium bike section.
Royal Enfield’s robust factors
Nevertheless, Siddhartha added that each time another two-wheeler model comes up with a brand new product within the mid-displacement section, it has turned a behavior for everybody to sound a loss of life knell for Royal Enfield. Though he claims that the model has the expertise and experience in gross sales, dealership walk-ins, after-sales and advertising which have saved the model going robust.
In the previous couple of years, Royal Enfield has proven an amazing resurgence after a few years of lifeless efficiency available in the market which has seen an enormous surge in gross sales due to its strong merchandise on provide. The corporate is seeking to additional solidify its place within the automotive sector by launching as many as 28 new bikes within the subsequent seven years.
It’s positively laborious for another producer to displace Royal Enfield from its place within the premium bike section and the Chennai-based bikemaker in all chance will proceed to dominate this section. Nevertheless, with robust merchandise from rival manufacturers at aggressive costs would imply that RE will no extra take pleasure in a transparent monopoly.