Triumph Motorcycles India is developing India as an assembly hub and is all set to kick off exports of its range of premium luxury motorcycles from India to its Himalayan neighbour.
18 Sep 2014 | 6453 Views | By Shobha Mathur
Triumph Motorcycles India is developing India as an assembly hub and is all set to kick off exports of its range of premium luxury motorcycles from India to its Himalayan neighbour, Nepal. Expected to start by end- March 2015, volumes of 100-120 premium motorcycles will be exported during 2015-16.
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Triumph Motorcycles India is developing India as an assembly hub and is all set to kick off exports of its range of premium luxury motorcycles from India to its Himalayan neighbour, Nepal. Expected to start by end- March 2015, volumes of 100-120 premium motorcycles will be exported during 2015-16.
The CKD units will be assembled at its assembly unit in Manesar, Haryana and sent to Nepal which has a large market for motorcycles. At present, only Kawasaki and Harley-Davidson bikes are sold there in the fast-developing premium luxury segment and Triumph aims to target this segment, Vimal Sumbly managing director, told Autocar Professional on the sidelines of the launch of its 12th India model, the Thunderbird LT priced at Rs 15.75 lakh ex-showroom Delhi.
The Thunderbird LT will strengthen the luxury two-wheeler maker’s cruiser line-up, joining the Thunderbird Storm Rocket III Roadster. With the new cruiser premium Thunderbird LT, Triumph is targeting total sales of 1500 units in the current calendar year.
“The last 10 months have been extraordinary for Triumph Motorcycles with 8 functional dealerships successfully selling over 835 motorcycles (bookings and retails). We have realised that there is an inherent need for premium cruisers among the Indian audience who are looking to travel and explore the lovely countryside and that’s where Thunderbird LT fits in,” he added.
Triumph plans to strengthen its dealerships as well and will be opening new outlets at Chandigarh and Kolkata during the next two months taking the total number of outlets to 10 by the year-end. Next year would see new dealerships at Jaipur and Indore in addition to Nepal.
After two years of strategising, Triumph is now creating new locations in India in the Tier 2 towns compared to earlier when superbikes used to mostly sell in big cities like Mumbai, Pune and Delhi. Now demand is coming from cities of Ahmedabad and Jaipur as well. The company’s target is to reach 13 dealerships by the end of the fiscal.
Triumph Motorcycles that began its India operations in November 2013 with the launch of 10 models added its 11th model at the Auto Expo 2014. Globally it has two CKD plants one in Brazil and the other in India, underlining the importance of the growing Indian market. At present the company has seven CKD models with the balance five coming as CBUs. The company is also looking to extend its CKD operations to 8-9 motorcycles by June next.
Going forward as volumes rise, it will convert the CBUs into CKD operations as the assembly unit is flexible. Being a long-term player in India, it will bring other many new models from its global portfolio of 28 products according to market requirements from time to time, according to Sumbly.
“The Indian market is very large and growing. The global market in 500cc motorcycles is going down and with the ripple effect, the Indian market has grown 6 times since 2010-11.”
Burgeoning growth
The influx of luxury manufacturers in two-wheelers in India that started with Harley-Davidson drew others like Ducati, KTM, Kawasaki and Triumph also. With the new government promising growth of infrastructure, luxury makers are very bullish about the prospects of future growth in this market. Moreover, the Indian buyer is a global customer and now with a disposable income and availability of products he is ready to splurge on the high-end premium bikes that he had once yearned for. Therefore, the Indian two-wheeler market is no more limited to small-engined bikes but the top end market is also evolving. For instance, the premium motorcycle market in the 500cc segment that was worth 3,200 units last year, accounted for 3,500 units in the first 4 months of 2014. It is expected to peak to 10,000-12,000 units by year end. The market has shot up from almost 400 units 4 years ago.
Triumph is targeting a 15 percent market share in this segment with the 1,500 unit sales it clocks this year. Of its total sales about 10 percent will be contributed by its super premium bikes in the Rs 15-20 lakh price bracket, 10-12 percent by the Roadster models with the Classics contributing 40-45 percent of its sales.
Harley-Davidson remains the market leader in the premium luxury motorcycle market followed by Royal Enfield. In the 500cc category and Rs 5 lakh price point Triumph leads, say company officials. The Triumph range in India is priced between Rs 6 lakh-Rs 21 lakh. The premium segment in India starts with the Royal Enfield’s Rs 2 lakh bike and goes upto the Rs 21 lakh Triumph motorcycle.
While expanding its dealerships, Triumph is also strengthening its aftersales service. It has recently started a project where a customer can call up and book at the dealership for servicing. In return the service will be provided at his doorstep so that he does not have to travel to the service centre.
Triumph also displayed its merchandise at the launch of the Thunderbird LT in Delhi. Sumbly elaborated that in the smaller bike segments, buyers are more interested in running and maintenance costs but in the premium segment, people not only want more chrome on the vehicle body but buy a lot of company-branded jackets to go with their bikes.
At a rough estimate, customers spend between Rs 50,000-Rs 2 lakh on accessories for each bike. In addition, they like to personalise their bikes, for instance, exhausts to increase torque, clothing accessories or increased safety products.
In line with prime minister Narendra Modi’s call for ‘Make in India’ Sumbly says Triumph is ready to look at manufacturing in India as well as localisation and sourcing of parts locally in the long-term if volumes warrant. But at the moment, the focus will remain on expanding its product range and growing it in a vibrant and throbbing Indian market.