Royal Enfield to face competition from Harley x440 

Given Harley Davidsons' brand image and competitive pricing at which the product was launched, X 440 could be a strong contender in the premium segment.
Royal Enfield (Photo | AFP)
Royal Enfield (Photo | AFP)

NEW DELHI:   India’s largest two-wheeler maker Hero MotoCorp and American legacy brand Harley-Davidson’s co-developed mid-size bike is likely to challenge the might of Royal Enfield in the mid-size segment as the impact of the x440 launch was seen in Eicher Motors shares, which witnessed one of its worst selling sessions in recent times on Tuesday. 

Shares of Eicher Motors, the parent company of Royal Enfield, cracked over 6% to end Tuesday at Rs 3,411 a piece. Hero MotoCorp shares, on the other other hand, gained 5% to close at Rs 3,035. “Harley Hero x440 is launched at a competitive price, which is below expectation and surprised positively. Given Harley Davidsons brand image and competitive pricing at which the product was launched, X 440 could be a strong contender in the premium segment and has all the ingredients to garner good market share,” said Himanshu Singh- Research Analyst, Prabhudas Lilladher.

Singh added that the biggest loser could be Eicher Motor given a near-monopoly market share in premium segment. The impact on volume would depend on how fast Hero and Harley can attract buyers and how RE responds to the competition. But, we are seeing increased competition for Royal Enfield and this could be an overhang on Eicher Motors' share price,” said Singh. 

Hero and Harley launched their co-developed premium motorcycle – the Harley-Davidson X440 in India late Monday night at a starting price of Rs 2.29 lakh lakhs. Currently, Royal Enfield has a market share of about 90% in the 250-350 cc segment and it dominates the 350-650 cc segment. 

Owing to the high demand for RE bikes, this segment is attracting the eyeballs of rival bike makers such as Honda 2wheelers, Hero MotorCorp and Bajaj Auto, which in partnership with Britain’s Triumph is expected to launch its mid-size bike soon. Pawan Munjal, Executive Chairman, Hero MotoCorp, said, “The motorcycle brings the best of the iconic Harley-Davidson’s signature elements with manufacturing expertise and trusted quality of Hero. Together, we aim to create a unique value proposition for customers in the Indian market and target a wider range of motorcycle enthusiasts.”

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