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In India's biker paradise, Royal Enfield faces a new challenge from Harley-Davidson

Asia Manufacturing Review Team | Saturday, 16 December 2023

 Asia Manufacturing Review Team

Sajneet Sandhu grew up riding about Goa's palm-fringed highways on her father's Royal Enfield, taking in endless beaches and rice paddies from the back of the legendary Indian motorcycle. She now has a bike of her own, inspired by her childhood recollections. But it's not like her father's. 

Sandhu chose a Triumph roadster over a Royal Enfield, which her father and several million other motorcyclists in India preferred.  "The new Triumph was affordable, so I thought, 'Why not?'" remarked the teacher. Sandhu's decision underscores a transition in India's motorcycling scene, where she is part of an emerging middle class and one of a growing number of female riders. 

Harley-Davidson Inc., like Triumph, is restarting its efforts in India, where Royal Enfield is beloved in the same way that Harley is in the United States. The Milwaukee-based firm and Triumph have local partners, allowing them to produce their bikes at a lower cost in the world's largest two-wheeler market. 

Harley-Davidson originally failed to make inroads into India and withdrew in 2020 due to low sales. Its imported motorcycles were severely taxed and were not built for India's climate or potholed roads.

Harley-Davidson introduced the X440 particularly for India earlier this year, with Hero MotoCorp Ltd. manufacturing it in the northern town of Neemrana. The X440 starts at 239,500 rupees ($2,870), which is far cheaper than the Nightster, the American company's cheapest imported big engine motorbike, which costs 1.2 million rupees.  Since July, Harley-Davidson has received over 25,000 reservations for the X440.

Triumph's Indian partner, Bajaj Auto Ltd., manufactures and sells the Scrambler 400X and Speed 400, priced at 262,996 and 233,000 rupees, respectively. According to Bajaj, orders for those began in the second half of this year and have already surpassed 10,000.

The numbers indicate that Harley and Triumph's plan to build cheaper, smaller-engine motorcycles locally is paying off, giving them a better chance of catching up to Royal Enfield. 

Royal Enfield's Bullet motorcycle won over a generation of riders with its thump and roar, and the manufacturer is the undisputed leader in small- to mid-engine size bikes. In November, a festival season month when consumer spending is normally highest, it sold approximately 75,140 motorcycles in India. The Classic 350, Royal Enfield's best-selling model, starts at 193,080 rupees.

"People's purchasing power has increased, and they are venturing outside of their city commute to do offroading and leisure riding," said Rahul Mishra, a partner at management consulting company Kearney. "There's also a fair bit of status consciousness, customers want to be seen with bigger bikes and better brands."