REVVING UP: British premium motorcycle company betting on frequent new launches and upgrades
Even as the premium motorcycle segment witnessed about 8% de-growth last fiscal year, British premium motorcycle company Triumph is betting on frequent new launches and upgrades to take on slowdown as well as the competition.
Speaking on the sidelines of the launch of Speed Twin on Wednesday, Triumph Motorcycles (India), GM, Shoeb Farooq said the company has been continuously bringing new and upgraded products, which it would continue to do. The company expects to complete its target on five new launches before the end of its financial year in June. "This has helped us to hang on to our volume in the difficult scenario," he said. Triumph, which currently holds about 16% market share in the 500cc plus category, has been selling about 1,150-1,250 units annually. The company has about 13 products in the Indian market.
Experts claim that the Indian automotive sales have been experiencing a prolonged slowdown since September last year. The primary reason for it being tightening of liquidity by non-banking financial institutions (NMFCs) after Infrastructure Leasing & Financial Services Limited (IL&FS) crisis.
According to vehicle manufacturers, the premium segment provides higher margins. Though the volumes are currently low, they are set to increase in coming years back on the rising purchasing capacity of the customers and higher aspirations. India overall is among the highest seller of two-wheelers with over 20 million units sold annually.
Data available with Society of Indian Automobile Manufacturers, a lobby group for vehicle manufacturers in India within the premium segment, the motorcycle with an engine capacity of 250-800cc has been striding ahead, though on a lower base.
Triumph is also battling growing competition in the premium motorcycle segment in India with the entry of prominent global brands in the past 2-3 years. Kawasaki Motors, BMW, Ducati, Benelli, Suzuki, Honda are some of the global brands in the segment in India, which according to some estimates is projected to reach $ 161 million by 2023. Further, the premium motorcycle (200-500cc) category in India is growing at a CAGR 22% for the past five years.
However, Farooq says he is undeterred by the competition saying that despite the entry of new players, his company has been able to hold on its volume due to continues churn of new product line-up and upgrades.
In order to make further inroads into the Indian market, Triumph even has got into an alliance with Pune-based Bajaj Auto. The partnership is expected to bring out its first product in 2021, as per the plans. The company executives said that finer details about the partnership are being worked out.
The company imports about 85-90% of its products in completely knocked down (CKD) and its long term strategy remained focused on it, said the company executive. Triumph has developed CKD facility in India, which is one of the five major such facilities, the executive said.
RIDING ON BUMPS
- The motorcycle maker expects to complete its target on five new launches before the end of its financial year in June
- Triumph is battling growing competition in with entry of prominent global brands in the past 2-3 years
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