Convergence of international and Indian brands in the Indian motorcycle segment.

adminJune 8, 2024

Car stocks: The Indian motorcycle industry has always been a preferred and loved one by commuters and enthusiasts alike. In most second- and third-tier cities, it is the main mode of transportation for those on a tight budget. The industry is experiencing a new wave of excitement with the entry of foreign automobile companies partnering with popular brands in India.

Looking to establish a foothold in India, Triumph, Harley Davidson and Norton are attracted to India because of its vast expansion potential and growing consumer base. They have partnerships with renowned Indian companies such as Bajaj Auto Ltd, Hero MotoCorp Ltd and TVS Motor Company Ltd.

This article will help you understand the complexities of these partnerships, analyze the mutual benefits derived from these alliances, and predict the future trajectory of the industry.

Trends and Innovations in the Motorcycle Industry

With a market size of $299.2 billion as of 2024, the Indian two-wheeler industry is poised to undergo significant changes in the coming years. With rising incomes and urbanization, a middle class with disposable income has presented lucrative opportunities for international brands.

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This economic growth has led to increased demand for personal mobility and premium motorcycles. This trend is evident among urban youth and professionals who see motorcycles as an expression of their lifestyle rather than just a means of transportation. Second, technological advancements play an important role in shaping industries.

Modern motorcycles are now equipped with sophisticated features such as: Anti-lock braking system (ABS), fuel injection system and smart connectivity options improve safety, efficiency and user experience. The shift to electric two-wheelers is gaining momentum due to environmental concerns and government incentives.

ICE engines have dominated the two-wheeler industry for many years, but recently, electric and hybrid engines have taken the population by storm, with demand surging from companies like Ather and Ola.

Increase in foreign-Indian brand collaborations in the Indian market

India can be seen as a dream destination for auto component production due to its cost advantages. Still, why have so many American automakers faced such failures and closures in India? GM, Ford Motors, and even Harley-Davidson have faced this challenge.

These companies had difficulty adapting to the Indian market due to substandard product planning, and keeping up with technological advancements while keeping product prices low was a major challenge for these companies. As currently understood, Indian consumers generally prefer affordable yet technologically advanced vehicles.

Recognizing these challenges, foreign motorcycle manufacturers are now adopting a different approach by collaborating with Indian brands. Indian brands have a deep understanding of local consumer preferences, regulatory environment, market dynamics and primarily enjoy lower production and selling costs.

This has resulted in Harley Davidson partnering with Hero MotorCorp, Triumph partnering with Bajaj Auto Ltd and Norton partnering with TVS Motor Company. These three Indian companies alone account for approximately 61.55% of the Indian motorcycle market in terms of revenue in 2023. This collaborative approach mitigates the risks associated with entering a new market and leverages the strengths of both partners to maximize the likelihood of success.

brand partnership

Bajaj Auto (Triumph)

Bajaj Auto Triumph is primarily focused on exporting Triumph to international markets, having exported approximately 19,000 Triumph bicycles to approximately 57 countries and retailing in approximately 50 of them. The Indian company’s plant in Chakan, Pune will be responsible for producing the motorcycles, which will then be sold globally.

Bajaj will also handle Triumph’s distribution activities in India. As of the third quarter of 2024, approximately 15,000 units were delivered, of which 8,000 were sold domestically. They have now infiltrated 41 cities, 10 to 11 of them in the last six months.

Accordingly, it achieved approximately 4-5% market share in the entire 250cc~500cc industry, and achieved 20% market share together with Triumph in Bangalore alone. This strategic partnership is expected to maximize the potential of both brands globally. Triumph and Bajaj aim to combine their respective strengths to offer a range of successful products that meet the needs of mid-size motorcycle enthusiasts around the world.

TVS Motor Company (Norton)

TVS Motor Company We have invested approximately 50 million won in product design and development. 8.8 billion. The company is expected to invest Rs. Norton is expected to generate $400 million in revenue in the coming quarters and will enter the premium segment. TVS Motor Company, known for its innovative designs and cost-effective manufacturing capabilities, is all set to launch a new range of motorcycles in the market in partnership with Norton Motorcycles.

Norton, with its rich heritage and iconic brand, will contribute its expertise in design, engineering and performance to the partnership. The partnership will also see TVS Motor Company further expand its presence in India by acquiring the distribution activities of Norton Motorcycles in the country. In other key overseas markets where Norton is currently absent, TVS will represent the brand and offer the new mid-size bike as part of the overall Norton line-up.

It is expected to hit the market by FY2024-25, which will offset the cost entry into TVS accounts. They have announced Norton V4CR Café Racer in India. This is the first bike announced after the Norton acquisition. However, the company has no plans to launch it in India as there is little to no market for the 1200cc V4 engine.

The strategic partnership is expected to open up significant growth opportunities for both companies, especially in the mid-size motorcycle segment. TVS Motor Company and Norton Motorcycles aim to combine the strengths of both companies to create a new product range that will win the hearts of customers across the globe.

Hero MotoCorp (Harley-Davidson)

Hero MotoCorp It then partnered with Hero to develop and sell a range of premium motorcycles. Before that, Harley-Davidson had entered the Indian market but withdrew with sales of only 4,533 units in FY20, down 59.8% compared to 11,753 units in FY16.

The partnership between Harley-Davidson and Hero MotoCorp is a game-changer for the Indian motorcycle industry. These two giants will combine their strengths to create a new range of premium motorcycles that will truly resonate with customers in India and beyond.

Harley-Davidson will contribute its renowned design and engineering expertise to create a new range of premium motorcycles that meet the growing demand for high-performance bikes in India. As of March 2024, Harley-Davidson holds a market share of approximately 10% in the premium motorcycle market. Orders for the current product, the Harley Davidson X440, are 30,000 as of FY2024.

Under this partnership, the first jointly developed model, the Harley-Davidson X440, is being manufactured at Hero MotoCorp’s Neemrana plant in Rajasthan, helping Harley-Davidson avoid high customs duties on imported bikes. Currently, we are focusing on the domestic market, but there is a possibility of exporting the Harley-Davidson X440 to other markets in the future.