The demand for mid-size motorcycles in India is expected to improve in the coming months, and is likely to clock a growth in high-single digits during the current financial year, according to Royal Enfield CEO B Govindarajan.
The mid-size motorcycle segment, which consists of models with engine capacity in the range of 250-700 cc, accounts for around 7-8% of the overall motorcycle market. The segment witnessed a growth of around 4-4.5% on year in the first quarter.
India’s overall two-wheeler industry, particularly the commuter segment is catching up well in volumes, after the dip due to the pandemic, Govindarajan noted, adding the middleweight segment has already surpassed the pre-covid level last year.
“The whole middleweight motorcycle as of now, has to pick (up) the pace with respect to the rest of the motorcycle segments with all our actions that are coming up. And there was too much of noise that has settled down,” Govindarajan told investors on Thursday.
Eicher Motors’ Royal Enfield is the market leader in the domestic mid-size motorcycle segment with around 90% share. It has a portfolio of 11 models, including the recently launched Guerilla 450. The company is also planning to launch an updated version of its Classic 350 models soon.
New product launches, festival season and the ongoing premiumisation trend in the industry are expected to improve the demand in the segment. “Premiumisation is continuing. No indicator shows this segment will not grow. I am confident that it is going to grow,” he added.
The segment has seen a surge in competition lately, with new launches from key players like Hero MotoCorp, Harley-Davidson, Triumph and Bajaj Auto intensifying the market battle.
This reflects the demand witnessed in the premium motorcycle market in the last couple of years after the pandemic as many aspirational buyers started looking at two-wheelers for more riding experience.
For the first quarter ended June, Royal Enfield’s domestic wholesales recorded a decline on a year-on-year basis. This reflects weak demand during the election period and monsoon, as well as caution in increasing the inventory ahead of new launches.
Read more: Eicher Motors Q1 FY25 earnings: Higher selling price, profit share from VECV boost net profit
Read more: Bajaj Auto sees 2W industry sales growing 7-8% in FY25, e2W sales growth in 'high teens
Read more: Royal Enfield eyes 2X growth of premium motorcycle industry in long-term