"We are trying to open up a segment that has been dormant for a very long period of time, which is currently dominated only by the Royal Enfield," Arjun said.
16 Apr 2024 | 57965 Views | By Radhika Dave and Prerna Lidhoo
“We’re trying to open up a segment that has been dormant for a long period of time, which is currently being served only by Royal Enfield, Dinesh Arjun, the Co-founder and CEO of electric motorcycle Raptee EV said.
Talking to Autocar Professional, he said they’re aware that Royal Enfield ...
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“We’re trying to open up a segment that has been dormant for a long period of time, which is currently being served only by Royal Enfield, Dinesh Arjun, the Co-founder and CEO of electric motorcycle Raptee EV said.
Talking to Autocar Professional, he said they’re aware that Royal Enfield owns a ‘lion’s share’ of the market [almost 75%]. There have been a lot of other players who have tried to enter the market and also failed. But that’s exactly what we’re not trying to do, he said. "We’re not a replacement for Royal Enfield. Not only do motorcycle replacements not exist in the market. Everybody is thinking about their next vehicle being electric and till another player comes up in the motorcycle segment that is electric, we will definitely have time to play around till then."
India’s two-wheeler market is largely dominated by entry-level (76-100cc) bikes at around 51% market share and commuter (110-150cc) bikes at 30%. The premium segment—that comprises bikes above 150cc—accounts for 18%. Of the premium bikes sold in India, close to 40% are Royal Enfield bikes.
The market dynamics have changed a lot in the last five years when the entry-level bike segment accounted for over 60% and premium bikes were just 14%. And this is what is enticing both global and domestic motorcycle makers to enter the fast-growing premium bikes segment in India. Players like Raptee are the early movers in the premium electric space and are expected to cater to the growing segment that's demands a sweet mix of value and premiumisation.
“The largest segment is the 100-125 cc segment, and now customers are looking to upgrade. If you are looking at what products are available in the market for these customers to upgrade, there’s hardly any. The only product that you can upgrade to, is the Royal Enfield. Personally, the Royal Enfield does not cater to every lifestyle. It’s a very specific lifestyle that not everybody wants to be associated with,” he said.
“In our case, what we believe is that not only are we giving a replacement to the customer looking to buy a 250 cc bike, we are also positioning ourselves as an upgrade option for those who have lived the 150 cc bike and are now looking for a more premium vehicle to ride which is more economical,” he noted.
“We are not only looking at one segment and saying we are looking at people who are buying into this segment. Rather, we are trying to open up a segment which has been dormant for a very long period of time, which is currently dominated only by the Royal Enfield,” he noted.
Arjun stated that once any player crossed the 150 cc segment, they focused on ‘extremely specific niches.’ “The only player who has a wide customer audience is Royal Enfield, and even that, comes with a specific lifestyle drive. That’s the space that we also want to tap into.” Arjun believes Raptee is serving a premium product that’s not just a lot more fun but also more practical for someone in their early to late 30s.