BDN’s assertion that Royal Enfield faces more competition on Indian home turf, made in the August On the Money column, has been confirmed by domestic market leader Hero MotoCorp.
Big-league Indian motorcycle manufacturers – Hero followed by Bajaj and TVS – have been struggling to return to pre-pandemic sales volumes. Inflation is increasingly driving prices for basic entry-level offerings – typically ultra-cheap primary transport for farm workers – beyond the reach of these bargain-basement rural customers.
According to Reuters, Hero booked a £79.4m profit in the first quarter of its current financial year to the end of June but failed to meet an analyst earnings estimate of £85.3m despite a big price hike in April, on the back of a 2.7% drop in unit sales.
So now India’s “premium segment” beckons for the market leader. This is, of course, still budget territory in terms of developed markets, but a large step up for Indian riders. Hero’s already promising bet on segmental assault involves the world’s cheapest Harley-Davidson, a locally produced X440 single for less than £3000, which attracted about 25,000 advance orders within a month of its unveiling.
Hero MotoCorp chief executive Niranjan Gupta pulled no punches in a statement to Reuters, indicating that he is keen to tap into customers who are ready to pay more for the right brand. “We will see more launches of new models in this segment over the next few quarters, as we intend to win big in premium products,” he said.