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Royal Enfield&#039s huge bicycle could take a look at Harley&#039s India dominance


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Harley-Davidson Inc’s pole place in India’s rapidly growing huge-bicycle classification is established to confront a sweeping take a look at when Indian-owned Royal Enfield launches its first heavyweight bicycle on Tuesday.

The symbol of Royal Enfield is pictured on a bicycle at Royal Enfield’s flagship shore in Bangkok, Thailand, February 24, 2016. REUTERS/Athit Perawongmetha

REUTERS: Harley-Davidson Inc’s pole place in India’s rapidly growing huge-bicycle classification is established to confront a sweeping take a look at when Indian-owned Royal Enfield launches its first heavyweight bicycle on Tuesday.

The world’s greatest bicycle and scooter market place with 18 million in the yr to last March, India accounts for fewer than 2 p.c of Harley’s world revenue but is now a manufacturing location for its well-known Road 750 bicycle and a promising generator of development as U.S. demand slows.

Harley was the first big participant in the country’s huge bicycle market place – described as individuals with engines earlier mentioned 601cc – and controls 60 p.c of a phase that has just about tripled in sizing because 2014 and is anticipated to double once more in the upcoming 4-5 a long time.

With the arrival of Royal Enfield, nevertheless, it faces a locally-owned distribution community that dwarfs Harley’s around 30 outlets by a multiple of 24.

Have been Enfield to ship even ten of its new huge bikes to each and every of its about 700 locations, it could double Harley’s three,700 in annual revenue.

A day right before the new bike’s start, Royal Enfield on Monday unveiled a 650cc twin motor, placing it on monitor to contend squarely with the Road 750.

India-primarily based industry analysts and commentators say that Harley’s distribution community in India need to be expanded if it is to offer with the new level of competition and climbing demand from the country’s 1 billion plus buyers.

“Getting outlet figures in the mid twenties is evidently a skinny distribution spread,” SBICAP Securities analyst Mahantesh Sabarad claimed.

“India has in excess of 30 ten-million-plus cities and each and every such city desires 2-three dealerships to cater to a budding market place of bicycle fans.”

Requested about the new bicycle last thirty day period, Harley Main Executive Matthew Levatich informed Reuters that he would not dismiss a competitor’s strengths but that he experienced faith in Harley’s brand name and would not be altering method.


Well-liked enthusiasm for commuting bikes in India’s densely populated city streets presents a considerably greater rider foundation than in western marketplaces where by Harley sells most of its bikes.

Harley strategies to raise its community but is careful about undermining its high quality brand name and has experienced troubles with issues about bicycle servicing in India in the earlier.

“The certain strategies and the amount at which we (expand) is a perform of finding a huge ample market place area and a really proficient vendor that can make the investments to have the brand name expertise that we want to have for riders,” Levatich claimed.

“So that’s part of the formulation, which will normally make it possibly slower and fewer dense than most of our competitors will do. But that’s our method and we are sticking to it.”

Royal Enfield’s new bicycle – to be unveiled in Milan on Tuesday – is anticipated to retail at about rupees three hundred,000 (US$4,640) compared to Harley’s Road 750 at much more than five hundred,000 rupees.

Other Harley executives say they truly feel self-confident that it will remain a brand name Indians will look up to.

“When it will come to wooing individuals riders from Royal Enfield to Harley Davidson, we have a monitor record of that now because we have been in India,” claimed Marc McAllister, Harley’s taking care of director for intercontinental marketplaces.

(Reporting by Ankit Ajmera and Rachit Vats in Bengaluru enhancing by Patrick Graham and xxxx)

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