Mid-Capacity Motorcycles in India: Is There Really Enough Demand?

Bajaj and Triumph seem to think there is a market for mid-capacity bikes that can take the fight to Royal Enfield.

How many of you would fork out money for a bike that costs over Rs 3 lakh? Is there a big enough market for mid-capacity bikes between Rs 3 lakh and Rs 6 lakh? Bajaj and Triumph seem to think so, having recently inked a partnership, which will also see them getting into mid-capacity motorcycles.

Read: Bajaj and Triumph tie-up to sell mid-capacity motorcycles

Now what exactly is that? Well, mid-capacity bikes are loosely classified as bikes between 400 and 800 cc in engine capacity. These could be single cylinder or multi-cylinder bikes. At present, there are very few bikes in this category. Royal Enfield is the only manufacturer that sells significant volumes in this category.

Just look at the numbers: Royal Enfield sold over 58,600 motorcycles in May. Of which, the maximum volumes came from its 350 cc variant, with over 39,000 units being sold. The 500 cc models of Classic, Thunderbird and Bullet sold about 3,200 units only. The Himalayan, Royal Enfield’s only 410 cc model, has temporarily been discontinued due to some technical upgrades in the works.

However, none of the other mid-capacity bikes sell in any significant numbers to speak of. Mahindra’s Mojo, a 300 cc bike, has barely managed to sell 100 plus bikes a month. KTM, which makes 200, 250 and 390 cc bikes, and is partner of Bajaj, has also managed to sell only about 1,600 bikes of the 200 cc model, about 500 odd of the 250 cc model, and 800 odd bikes of the 390 cc model per month.

But as you go up, the value chain the volumes taper off. Kawasaki, which until recently had partnered with Bajaj to sell its bikes, is now going it alone. Kawasaki has managed to sell only about 20 odd bikes of the Ninja 300 (priced slightly above Rs 3 lakh), and again, just 20 odd bikes of the Ninja 650 (priced at Rs 5.4 lakh or so).

Triumph barely sells any volumes, given that its bikes start at Rs 6 lakh and upwards. The company has managed to sell just under 500 bikes a year. And this includes all its 19 models put together. In May, it sold just over 50 bikes, of all models put together. The Bonneville T120 and Street Twin are the most selling – selling about 20 odd bikes every month.

Sales of all the bikes above 300 cc put together do not exceed the number of bikes that Royal Enfield sells in a single month. And at the price point of Rs 1.5 lakh to Rs 2.5 lakh that Royal Enfield sells in, it would be tough for others to compete, let alone trying to sell any sort of big numbers at higher prices. Royal Enfield has a legacy behind it and a cult following. However, so does Triumph – and that’s something Bajaj would be hoping to capitalise on.

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