India (Commonwealth) _ India’s Bajaj Auto debuted two locally-made Triumph bikes, two days after Hero MotoCorp unveiled a locally-made Harley Davidson model, increasing rivalry in the luxury category controlled by Eicher Motors’ Royal Enfield.
The unveiling of the two models, created in collaboration with Triumph Motorcycles in the United Kingdom, propelled Bajaj Auto shares to a record high of 4,900 rupees.
The Triumph Speed 400 will cost 233,000 rupees ($2,834), according to Bajaj Auto, but the Scrambler 400X will not be priced.
Hero, India’s largest two-wheeler manufacturer, introduced a locally-made Harley-Davidson model with a 440 CC engine and prices starting at 229,000 rupees late Monday.
Eicher’s main rivals are the Classic 350 and Meteor 350, both of which cost between 190,000 and 200,000 rupees.
Due to persistently rising inflation, two-wheeler manufacturers have turned their focus to more luxury items that cater to an ambitious urban populace, since demand in rural India, which accounts for the majority of two-wheeler sales, has been muted.
As part of the cooperation, Bajaj will handle the production and distribution of these bikes, the two firms said in April. Triumph now operates 15 dealerships throughout the country.
Analysts expect Eicher to face strong competition, a loss of market share, and growth issues as Bajaj and Hero enter the luxury bike segment.
Hero MotoCorp’s stock closed up 4.2%, virtually matching its 4.5% gain on Tuesday, While Bajaj Auto’s shares have increased by about 6% in the last two days. Eicher Motors’ stock, on the other hand, has dropped roughly 9%. $1 equals 82.2150 Indian rupees
Last month, Bajaj Auto and Triumph Motorcycles announced that the latter’s India sales and marketing operations had been transferred to the Indian firm.
The current 15 Triumph Motorcycle dealerships will be managed by Bajaj Auto as part of the agreement, but will remain unique to the brand and continue to operate in accordance with Triumph’s global standards, according to the announcement.
According to the Pune-based carmaker, it already maintains four different and exclusive dealership networks for its KTM, Bajaj Motorcycles, Chetak Electric, and Bajaj three-wheeler product lines.
