Who'll be the hero?

If measured by financial as well as operational performance, of late the action in the automobile market has shifted from four-wheeler to two-wheeler companies. The last quarter saw two-wheeler makers doing decent business and reporting rising sales and better earnings, although some saturation levels did show. At the same time, there is also the possibility of a new two-wheeler leader emerging in the country, what with Hero and Honda separating and Bajaj upping its ante by bringing in the legendary KTM bikes to India.

Hero MotoCorp remains the largest two-wheeler company by volumes and the fact that it launched a new petrol-electric hybrid scooter named Leap at last month’s Auto Expo in Delhi without any technological support from Honda goes to prove that the company has worked well on its R&D. As Anil Dua, senior vice-president, marketing & sales, Hero MotoCorp, puts it, “The year 2011 was very eventful for us and, in terms of overall sales, we recorded a growth of 19.2% over 2010. We also launched Impulse—our first bike under the new Hero brand name—which created a whole new segment in the Indian two-wheeler market, the on-road, off-road segment.”

The fact that Hero has been able to keep its sales in excess of half a million units per month goes on to prove that the Honda divorce hasn’t quite hit Hero. On this year’s plans, Dua says, “We will soon be introducing our second scooter, the 110cc Hero Maestro, as well as two bikes—the 125cc Ignitor and the 110cc Passion Xpro.” On network expansion, Dua says, “We remain committed to our multi-focal strategy of new launches, network expansion, rural drive and on-ground customer activation. We currently have more than 4,500 touch points across the country and we plan to take this up to 5,000 soon.”

For Honda Motorcycle and Scooter India (HMSI), it is a whole new beginning after the Japanese giant entered India with Hero in 1984. HMSI unveiled as many as seven products at the Auto Expo—New Dio, Dream Yuga, New CB Shine, CBR 150R, CBR 250R, CBR1000RR Fireblade and VT 1300CX. The company says it will stepwise introduce the products with regional/local launches. NK Rattan, vice-president, sales & marketing, HMSI, says, “Now as the ‘only’ Honda in India, we shall endeavour to become number 1 in this decade with the initial aim for number 1 spot in customer satisfaction.” It will be interesting to watch, as Honda’s uniqueness lies in its indigenous expertise in customer-oriented product development, and high quality and reliability of products.

For Bajaj Auto, the challenge has got bigger, because now apart from competition from Hero, it will also have to contest with HMSI, which will now have more bikes in its arsenal. Bikes, it must be remembered, is the only two-wheeler segment where Bajaj is present—the company made a total exit from the scooter market in 2009. Bajaj recently launched the KTM 200 Duke and unveiled the new Pulsar 200NS. The company, which is a force to reckon with in the premium bikes segment, says, “Between the Pulsar and the Duke, we intend to further strengthen our dominant position in the premium motorcycle segment.”

TVS Motor Company, which said at the Auto Expo that it will be launching four new products in fiscal 2012-13, believes that the volume segment for motorcycles is the executive segment. HS Goindi, president, marketing, TVS, says, “The new launches announced will not only help complete our motorcycle portfolio, but also help increase our market share.” On growth in the industry, he adds, “The two-wheeler industry in India is expected to grow at around 13-15%. TVS also expects to close the current. financial year in line with the growth average.”

If you would have noticed over the last couple of years, the ‘thump’ on Indian roads is sounding more often, and it looks quite good as well! Royal Enfield, makers of the Bullet—which is not just a bike but a quintessentially British 1950s biking experience—has been able to carve a niche for itself with the Classic range by attracting buyers who earlier stuck to the 150-200cc bikes. Then at the Auto Expo it launched the New Thunderbird 500. On the company’s 2012 plans, Shaji Koshy, senior vice-president, sales & marketing, Royal Enfield, says, “We have remained very clear on retaining the quintessential Royal Enfield characteristics. And, as pioneers of leisure riding in India, our bikes have always reflected the best of both worlds—uncompromised riding pleasure on the highway and uncomplicated practicality for city riding. The core to this philosophy is our mantra of ‘keep riding’ and this will reflect in our products, our communication, new ventures like accessories and even in our internal culture.” It must be added here that the company recently unveiled its biking gear, something which Royal Enfield aficionados had been looking forward to.
Harley-Davidson, the ubiquitous American highway cruising experience, says it has received a fantastic response in India and today there are more than 1,000 Harleys cruising along Indian roads. Sanjay Tripathi, director, marketing, Harley-Davidson India, says, “Harley-Davidson is not just a motorcycle company, but a culture defined on two wheels that inimitably encompasses self-expression, adventure, freedom of the open road and belonging to a global community—a family of riders. Our 360-degree marketing approach includes events such as boot camps, founders’ ride, media rides, etc, along with strategic advertising, an interactive website, etc.” This year, the company associated with the India Art Fair with an aim to bring alive the ‘Art of Customisation’, highlighting the brand’s core differentiation that ‘no two Harley-Davidsons are the same’. Tripathi says, “Given the huge response these initiatives have garnered over the last two years, and the passion and respect the brand has received from Harley enthusiasts, we look forward to welcoming more riders to experience the true Harley culture and lifestyle.”

At the Auto Expo, a competitor to Harley had arrived, from Britain, and now the high-end bike buyers have more to look forward to. Triumph Motorcycles says it is elated by the response it is getting since its launch. Ashish Joshi, managing director, Triumph Motorcycles India, says, “Although it may take a few months for all Triumph bikes to reach India, the requests from discerning consumers and individuals showing keen interest in dealerships is a promising start for us.” On Triumph’s marketing strategy, Joshi says, “The key essence of our marketing strategy will be to provide our Indian customers the same brand experience that we provide globally. We will also be making conscious efforts to providing everything from genuine parts, unrivalled after-sales services to authentic Triumph merchandise and accessories that will form the cornerstone for our brand.” The company believes that with the attractive pricing (ranging from R5.5 lakh to Rs. 22 lakh) to support its products, it is confident of attracting customers.

This year promises to be quite an exciting one for two-wheeler makers. While Hero is precisely doing what Bajaj and TVS did after they separated from Kawasaki and Suzuki, respectively, that is upping its R&D ante, HMSI is expanding its products to suit all kind of customer needs and is rapidly building capacity. Royal Enfield is attracting more youngsters into its fold and, at the other end of the segment, Harley is facing competition from Triumph, which itself is trying to carve a niche for itself. Let’s see how the year pans out