A close look at the data for the overall motorcycle wholesales in India shows that there is a growing shift amongst consumers for higher-powered motorcycles, especially in the 150-200cc and 250-300cc segments. This industry observers believe is because of a multitude of factors such as rising disposable income, growing preference towards powerful motorcycles, hike in entry-level motorcycle prices and increase in number of models available in the mid-size segment.
Interestingly, the recent introduction of Triumph Speed 400, Harley-Davidson X440 also indicate that global players see India as a key market. But what’s pulling them toward the mid-size segment?
| MOTORCYCLE SALES IN INDIA | |||||
| Segment | Apr-Jun ’22 | Apr-Jun ’23 | Change (in %) | 2022 Market share (in %) | 2023 Market share (in %) |
| 150-200cc | 180,245 | 274,655 | 52% | 50 | 53 |
| 200-250cc | 9,295 | 22,909 | 146% | 3 | 4 |
| 250-350cc | 152,055 | 202,215 | 33% | 42 | 39 |
| 350-500cc | 13,357 | 16,296 | 22% | 4 | 3 |
| 500-800cc | 5,310 | 6,838 | 29% | 1 | 1 |
| Total | 360,262 | 522,913 | 45% | 100 | 100 |
Taxation and localisation
An industry observer says that while India has been a highly taxed market for imported vehicles, partnerships with local players have moved beyond just contract manufacturing.
The prime example could be the partnership between Bajaj Auto and KTM for introducing the Austrian bike range in India. Then in 2015, it was the introduction of BMW G310R in India, which was developed by the German automaker along with TVS Motor Co, showcased the potential of premium brands in India.
A similar approach has now been taken by the Hero-Harley-Davidson and Bajaj-Triumph partnership. Another industry expert believes that while electrification in the two-wheeler space is being seen in the scooter and entry-level motorcycle segment. The mid-size motorcycle segment will be the last to see serious adoption of electrification.
“The mid-size motorcycle segment has still several decades of existence remaining. The customers here want the best of all worlds, they want a premium product, want to travel long distances, want to stand out from the crowd and not spend a fortune,” says an observer who wished not to be identified.
He gives the example of global IC motorcycle manufacturers, that barring a few products internationally, no market has yet seen serious volumes to justify being an early entrant.
Competition in the 250-350cc segment
Looking at the wholesale data for the first quarter of FY2024, it is clear that barring a few competitors and models, Royal Enfield continues to dominate the sales in the mid-size segment. With sales of 189,647 units, it managed to increase its market share to 93.8 percent from 93.3 percent. Barring the exception of Honda Motorcycle & Scooter India’s H’ness CB350, no serious contender was able to bring in substantial volume.
| Company | Apr-Jun ’22 | Apr-Jun ’23 | 2022 Market Share (in %) | 2023 Market Share (in %) |
| Honda Motorcycle & Scooter India | 8,744 | 11,218 | 5.8 | 5.5 |
| India Kawasaki Motors | 367 | 419 | 0.2 | 0.2 |
| Mahindra Mojo | 48 | 0 | 0 | 0 |
| Royal Enfield | 141,844 | 189,647 | 93.3 | 93.8 |
| TVS Motor Co | 1,052 | 931 | 0.7 | 0.5 |
| Total | 152,055 | 202,215 | 100 | 100 |
This is exactly an area where new models like the Triumph Speed 400, Harley-Davidson X440, upcoming Norton Motorcycle will seek to grab a piece of the action. The companies are banking not only the product capabilities but also the ‘brand perception.’ While it is difficult to understand the exact margin each model brings for the company, it is safe to say that a higher-displacement motorcycle, along with the various customisation options is a more profitable venture.
Industry experts believe that the entry of new players and models will further expand the market and not necessarily just eat into sales of market leader.
