Harley-Davidson launch intensifies competition to Royal Enfield; Eicher Motors, Hero MotoCorp in focus

Renowned American motorcycle manufacturer Harley-Davidson in collaboration with India's largest two-wheeler manufacturer, Hero MotoCorp, has unveiled the X440 motorcycle in India. This affordable bike is their joint endeavour aimed at rivaling industry leaders like Royal Enfield, Honda, and Bajaj’sTriumph. The launch of the X440 showcases a strategic effort to expand the market and attract new customers while disrupting the dominance of Royal Enfield in the mid-sized segment.

Overview of the new contender

The X440 is the most affordable Harley-Davidson bike to ever hit the Indian market, with prices ranging from Rs 2.29 lakh to Rs 2.69 lakh. The launch of this motorcycle has made a substantial impact on the industry, leading to a 4 per cent drop in shares for Eicher Motors, the parent company of Royal Enfield.

This motorcycle comes in three variants and boasts a roadster design inspired by flat-trackers, supplemented with modern elements like LED lighting, a digital instrument cluster, alloy wheels, and upside-down forks. The X440, equipped with a 440 cc engine and dual-channel ABS, showcases a premium appeal with meticulous attention to details.

Strategic partnership and its implications

The partnership between Hero MotoCorp and Harley-Davidson is almost three years old. This alliance was formed with the intent to boost the premium image of Hero MotoCorp and contribute to the growth of the mid-size motorcycle market.

The collaboration between these two entities aligns with Harley-Davidson's Rewire plan, focusing on profitable segments and bolstering their financial performance. This partnership presents an opportunity for Hero to expand its presence in the market. As a result of this collaboration, Hero MotoCorp plans to release a significant number of premium products in the next two years.

The new product launches in the pipeline aim to challenge the popularity of Royal Enfield and its dominance in the 250cc-500cc motorcycle segment.

Manufacturing, sales and competition in India

The X440 is being manufactured at Hero's Neemrana facility. Apart from handling sales and service for existing Harley-Davidson bikes, Hero MotoCorp is working on the development of new motorcycles in partnership with the American two-wheeler giant.

Harley-Davidson and Hero MotoCorp's new venture is set against the backdrop of fierce competition in the mid-sized motorcycle segment in India. Royal Enfield, in particular, holds a significant market share in the 250cc-500cc segment.

However, the premium motorcycle market is witnessing a surge in competition. In addition to Harley-Davidson and Hero MotoCorp's strategic moves, Bajaj Auto is gearing up to launch locally-made Triumph motorcycles in India. These upcoming launches are expected to give a strong competition to Royal Enfield and cater to the growing demand for premium two-wheelers.