The Indian two-wheeler market is changing gears fast and competition is heating up to capture new product categories. The premium space in this market has never had such a slew of launches lined up, as now. Add to that the introduction of the world's first CNG bike by Bajaj Auto.
NDTV Profit took stock of these two top premium bike makers — Bajaj Auto and Royal Enfield — and mapped their upcoming launch pipelines while taking a peak at their strategies.
Bajaj Auto: The Genie Is Back!
Bajaj Auto, in its quarter four post earning conference call, mentioned emphatically that the company will be launching six new launches over the next few months. It is noteworthy that the company had nine launches in the previous fiscal for two-wheelers, and despite exports sales falling by 10% for FY24, overall two wheelers registered a 8% growth led by domestic demand growth of 25%.
First up, is the Bajaj CNG bike, targetted at challenging the incumbent market leader Hero MotoCorp. They currently have 8-9% market share in the 100-110 cc segment, according to SIAM Data and this new launch is will aid further market share gains.
Earlier this year, Bajaj launched the Pulsar in the 400-cc segment in May 2024 and the Biggest KTM to be launched in the Indian market. Pulsar is the flagship brand of the company and crossed the 20 Lakh sales mark in the previous fiscal.
Currently, the 250-cc is the highest segment which Bajaj is present in with the N250 and Dominar. They also have collaborations with Triumph, KTM and Husqvarna to offer bigger bikes in India.
Royal Enfield: Fighting Back for Growth
For Royal Enfield their presence in 350-cc is well known. The company was a category creator many years ago in this segment and saw refurbishments with their new J platform with the launch of the new Meteor 350 and then eventual launches of in 350-cc with the Classic, Bullet and Hunter.
RE has been instrumental with another new category creation — the 650-cc segment with the launch of Shotgun. The company already offers Continental GT, Interceptor and Super Meteor in this category.
The Siddhartha Lal-led bike makers also launched the new Himalayan 450 in November 2023 on their all-new Sherpa engine, their first foray in the liquid-cooled engine category. This will help aid competition verus the newer entrants such as Harley Davidson 440-cc, launched by Hero MotoCorp and Triumph Scrambler by Bajaj Auto.
Royal Enfield's Catalyst For 450-cc Platform
In the coming months the 450-cc space will see gears shift. As per a UBS report, the company's conversation with a veteran Royal Enfield dealer mentions the 450-cc space to be key growth driver.
Dealers see the retro looking motorcycles like Roadster 450 key to attracting young and performance-oriented drivers. This could also be a catalyst for existing 350-cc customers to migrate to the 450-cc platform, the brokerage emphasised.
Currently, roughly 30 Lakh customers own Royal Enfield between 5-8 year old 350-cc bike. Roughly 85% of its sales coming from the replacement demand and they could pivot to the new 450-cc platform which has 48%/98% more power/torque than its 350-cc.
Newer Customer Foray And Launches
The new 450-cc platform could also see the Scram and the Café Racer join the fray to cover a larger demand from motor enthusiasts seeking strong product performance.
The company has been reportedly testing the Classic 650, aimed to address the comfortable cruiser category along with enthusing the Classic look lovers.
Moreover, the management has highlighted that an electric bike would be seen only in FY26-27. In other words, all these products are estimated to hit the market over the next 18-24 months.
New Launches, Others on Alert?
While both Bajaj and Royal Enfield have spelled out big product launch plans, it would be futile to rule out TVS and Hero's pursuit for growth.
TVS' formidable presence in scooters apart from their motorcycle launches with in past 12-18 months with Raider, Radeon and Ronin across segments from 100-160cc space has already done wonders for the company. I-Qube has driven EV sales with the company launching India's first premium EV scooter Smart X priced at whopping Rs. 2.5 Lakhs. Their legacy brand Apache has been their premium play and upcoming launches here would be key.
Hero MotoCorp hasn't been able to crack the premium space as effectively as other players, with X Pulse selling roughly 2,500 units in February 2024. With the relaunch of the new Karizma, the company is hoping to have a larger presence in this space.
Going Forward
The new premium space will be key industry monitorable going forward. New launches are skewed towards higher cc engines and newer technologies like electric scooters and bikes.
Newer companies like Ola Electric and Ather Energy have also been challenging legacy players while consumer preference for quality and slight premium for desired choice of vehicle will drive companies to strive for better product profile. Not a bad time to be a motor enthusiast!
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