Triumph Motorcycles India is a subsidiary of the iconic British motorcycle manufacturer and currently sells 17 international models and has already sold close to 4,000 units since inception.
Talking to
BW Businessworld, Vimal Sumbly, managing director of Triumph Motorcycles India, stated that the luxury premium bike market is expected to double to 20,000 units by 2022. He also stated that Triumph will become the market leader in the heavyweight bike segment in the country.
How important is the Indian market for Triumph and how big are you betting on it? Triumph is one of the oldest motorcycle brands and operates out of 55 countries in the world with manufacturing or assembly operations in only four countries, i.e. the UK, Thailand, Brazil and India. You can also look at the back-up we have generated here over the last three years. We have a product line-up of 16 brands, are running our own CKD facility here, and have set up close to 14 dealerships in the country. There are close to 15 manufacturers in 500cc+ segments present in India.
Everybody is coming to India because it is one of the largest two-wheeler markets in the world. As the market matures, there will be a transition towards bigger bikes. India is a very strategic market in terms of developing countries in the world and plays a vital role there. In the years to come, it is an important market because the industry size is large and there would be enormous opportunities. Also, India ranks 4th or 5th among the number of billionaires in the world.
The average Indian is youth and thus the transition will be good. I think what is activating it further is the infrastructure projects taken up by the government such as modern roads and highways apart from Smart City projects taken up by the government. Thirdly, an Indian today is going global in his outlook and approach and wants to experience luxury in his own space. I think from that perspective; India is a destination and nobody can ignore it.
With 15 brands already in place in a small volume luxury market, how do you differentiate yourself among your peers? Also, can you tell me the number of units that you have sold till date?
Our core objective is to focus on every motorcycle enthusiast in India who is aspiring to have a bigger bike irrespective of his status, age, background, etc. Triumph is differentiated among its peers as it offers 5 broad categories of heavyweights such as Cruiser, Classic, Roadster, Adventure and Supersports for various age groups.
Since January 2013, we have sold 4,000 units till date and this financial year we are aiming for 1,300-1,500 (1,200 last fiscal) units till date. With this, we are confident of increasing our marketshare by a few percent more.
To achieve that, we are already coming up with new products like the recently-launched Bonneville Bobber, which itself has created a new category in the super-premium bike segment. Nearly 40 per cent of our volumes come from the Classic range.
What is the size of the heavyweight bike market in India? And what are your projections for the future?
If you look at the luxury premium motorcycling market in India and globally which is falls in the 500cc and above, there are two segments out of which one is price sensitive, i.e., less than Rs 500,000 and the other is above Rs 500,000, which is pure luxury without any compromises. Overall, it is around 10,000 units per year with 60 per cent of them going for high-end bikes. That is a massive jump from 500-600 units per annum sold a decade back.
If I take the full set up of 500c+, we have around 15-16 per cent market share and if you talk about purely the Rs 500,000-segment where we operate, then we have a 29 per cent market share. I think in the next 5 years the number is going to double and we will have a significant marketshare. We would like to be the number one aspirational band in India.
Do you have any plans to come out with below 500cc bikes which are tailormade for the Indian market?
India has already migrated to 350cc and 500cc segments. While there is a sweet spot for 250cc-350cc segment, our present focus is on reinforcing our presence in the luxury segment. We have already modified our portfolio starting from Street Twin at Rs 700,000 going up to Rocket, which is priced at Rs 23 lakh. Interestingly, around 15 per cent of our sales come from Tier III cities and 35 per cent from Tier II cities.
You have already started assembling your products here on a small scale. Do you intend to go for manufacturing on a bigger scale with a higher level of localization?
We are one of the few companies in the large bike segment which is assembling their products in the country. June onwards, more than 60 per cent of our portfolio, including the entire Classic range, will follow the CKD route. Currently, we have a single production line which can produce up to 100-200 units per annum.
What is your vision for the company?
We are already among the top 20 markets for Triumph globally and going forward would like to figure among the top 5 markets. I would also like to see ourselves as the most sought after brand in the luxury motorbike market.
BW Reporters
The author is a Principal Correspondent at BW Businessworld.
