The superbike segment in India is beginning to open up as incumbents and new entrants fill up gaps in the market

Bussiness & Economy: Rewing it up on the new normal

Outrageous is what defines these mean machines – be it their pricing, their power quotient, their cool factor, or even their target customers. Superbikes have always enjoyed a cult position among those who have them, and have never 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 getting disappointed, despite being high on the price factor. Otherwise, it is more of a smooth ride for them since Indian home-grown manufacturers like Hero, Bajaj and TVS are still to manufacture a genuine superbike.

The market for superbikes is open with rising share of two wheeler sports segment becoming 17% in FY 10 from earlier 14%. Yamaha initially disappointed bikers as it didn’t give the owners the ‘Yamaha’ brand experience. But bygones became bygones with the launch of the R15, which helped Yamaha rebuild its sporty image. Interestingly, when Yamaha came to India with their global favourites R1 and V-Max, they sold a surprisingly high 50 units in three 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 product line up. Ducati opened its second showroom last year in Gurgaon with bikes ranging from Rs 1 million to Rs 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 a part of the evolving motorcycle industry in India,” said Mirko Bordiga, CEO, Ducati, APAC.

Bajaj has also understood the markets and has tied up with European major KTM Motors. Kawasaki also brought in the famous Ninja and 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. “There were around 1000 super premium bikes sold in 2009 and 2009-10 is going above at the rate of 20%," says Sanjay Tripathi, Director of Marketing, Harley-Davidson India. The latest buzz is that BMW would be announcing their motorrad luxury bikes by the end of the year, which will start with a price tag of whopping Rs 1.8 million. Hendrik von Kuenheim, General Director, BMW Motorrad, commented, “We are confident that our motorcycles will swiftly become established in timely preparation for the growing market.” BMW is reentring into the luxury bike market after the failed launch of BMW Fundaro 650. The luxury market currently stands at 1% of the overall market. A spokesperson from Honda 2-wheelers comments, “Last year we sold around 70 units across India with only two operational setups in Delhi and Mumbai. This year, we plan to sell 100 units.”

Most of these superbikes are at such hefty prices that the rational minded would prefer buying quality four wheelers for that kind of money. But superbikes are not expected to sell on the rational appeal in India as much as they would for the thrill and the oomph factor, to those with huge disposable incomes. Globally, the scenario is different as bikes are only used for special occasions or sports. But in India, motorcycles have become a regular mode of commuting. One would doubt that the masses would actually be able to enjoy the experience of these bikes. But fanatics have gone through thick and thin to get them nevertheless – be it by paying heavy import duties of about 113% for unregistered bikes and about 153% for registered vehicles.

On another front, while traditionally, Indian players have offered bikes in the 90cc to 250cc range (with Enfield the exception with a 500cc offering), the next level starts only with an 883cc Harley-Davidson or a 1000cc CBR. Recently, the gap has been filled by Garware Motors, which announced Hyosung’s re-entry in India with a 650 cc superbike, which is currently under Homologation process. “Beyond the 250cc segment, only the Royal Enfield was available with 350cc and 500cc and after that, the only models available are one-litre plus. So, we thought we would fill in the gap,” predictably accepts Diya Garware, MD, Garware Motors.

With Aprilla, MV Augusta and BMW Motorrad currently in talks with local importers and companies like Harley and Hyosung planning their CKD units, it seems that the sector is well on its way to opening up and more such gaps should be filled, taking the superbike exhilaration to a larger audience. Like other sectors, players would ultimately learn to adapt to Indian price sensitivities and penetrate deeper in the market. And then the next big demand from this growing superbike community could well be relaxation of speed limits on Indian roads. That may take quite a while though.

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