Will the new entrants in India's middleweight motorcycle category challenge Eicher Motors Ltd.'s dominance? While it may be too early to say anything, the market appears to think so.
Hero MotoCorp and Harley-Davidson Inc., and Bajaj Auto and Triumph Motorcycles Ltd. have unveiled three new challengers to Royal Enfield motorbikes.
Triumph-Bajaj brought the Triumph Speed 400 and the Scrambler 400X at an ex-showroom price starting at Rs 2.33 lakh. Harley-Hero Moto unveiled the X440 starting at Rs 2.29 lakh. The new entrants command more than 20% premium to Royal Enfield's Classic 350, which is priced at Rs 1.93 lakh.
Eicher Motors, the parent of Royal Enfield, has lost nearly Rs 11,190 crore in market capitalisation since the close on July 3—when the X440 was launched. By comparison, Hero Moto and Bajaj Auto have together gained a little more than Rs 14,340 crore.
This is the first real competition that Royal Enfield, with over 90% market share in the domestic 250cc plus category, is likely to face.
Eicher Motors' shares have fallen 11% since July 3, while Hero Moto and Bajaj Auto have jumped 8.4% and 5.8% respectively.
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