Revving It Up On The New Normal

The Superbike Segment in India is beginning to open up as Incumbents and New Entrants fill up gaps in The Market. B&E’s Sanchit Verma does a Quick Stopgap Review before the Number Game Begins

Outrageous is what defines these mean machines – be it their pricing, their power quotient, their cool factor, or even their target customer. Superbikes have always enjoyed a cult position across the world among those who have them, and never have failed to get noticed by those who don’t. And India has been no exception. Bikes like Yamaha R1, Suzuki Hayabusa and Kawasaki Ninja have been painstakingly beckoning the creed of rich young and style conscious Indians of late. And they are not exactly getting disappointed, despite being high on the price factor, due in part to the high import duties. Otherwise, it is more of a smooth ride over the rough Indian landscape, since Indian home-grown manufacturers like Hero, Bajaj and TVS are still to manufacture a genuine superbike.

The market for superbikes in India was conspicuous by its absence till the earlier part of this decade. The era changed with rising urbanization and with the two wheeler sports segment, whose share in the total motorcycle market has grown to 17% in 2009-10 (from 14% in the previous financial year). Yamaha initially disappointed bikers with its products, which somehow didn’t give the owners the ‘Yamaha’ global brand experience. But bygones became bygones with the launch of the R15, which helped Yamaha rebuild its sporty image. Interestingly, when Yamaha brought to India their global favourites R1 and V-Max for a test sale to the Indian customers, they sold a surprisingly high 50 units in 3 months. Soon, other global players realised that the Indian market has matured enough to take on these high-end machines. Players like European major Aprilla have already announced big plans to re-enter the market with their motorcycles and scooter line up. Ducati opened its second showroom last year in Gurgaon with bikes ranging from Rs.1 million to 4.5 million in the portfolio. “We have received a positive response from all bike enthusiasts and it’s good to know they are excited about the Ducati brand. We feel honoured to be part of the evolving motorcycle industry in India,” said Mirko Bordiga, CEO, Ducati, APAC.

Bajaj also has understood the importance of a luxury bike in the portfolio. They have tied up with European major KTM Motors, and their product might hit Indian roads in 2011. Kawasaki also brought in the famous Ninja, which has received an enthusiastic response. Suzuki introduced the Hayabusa with proper service and spares parts availability. Never too late Harley-Davidson announced its much awaited cruiser bike entry by launching 12 bikes in the portfolio ranging from Rs.6.75 lakh to Rs.3.5 million. In fact, their recent plans to open up the CKD plant in Haryana showcases the rising demand in the industry.

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Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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