This project is about understanding the behavior of consumers with regards to purchase of a High end bike. This project covers all the required information regarding the history of high end bikes in India till the current situation, market, and also the expected growth of these High end bikes in India.
Your heart might thump faster when you watch those motorbike stunts on silver screen or for that matter you will be simply be fascinated when you must have seen Bollywood hunk John Abraham on a Suzuki Hayabusa or watching the latest version of your favorite bike in a parking lot that motivates you to own one.
Be it a low-end bike or a high-end one all have the same potential to drive you crazy. Bikes have always given us precious moments; including some joyous rides, cruising through the traffic snarl with ease and making all four-wheeler guys fume with fury (ah! Envy we know!) or accompanied you as a best friend on those rainy and sultry days. There is surely an emotional attachment for every bike owner and a story to narrate about his riding experience. But we hardly give a thought to how these amazing man-made metal machines were created that are tirelessly serving us for years. Let’s go backâ€¦
The origin of motorbike
The history of motorbikes drifts us back to the middle of 19th century when the bicycle was modified into a motorbike with a very few mechanisms that earned the name of a ‘motorcycle’. In 1885 Gottelieb Daimler and Wilhelm Maybach the German inventors created the first motorbike that sported a petrol-powered engine.
Thought there are previous versions of the motorcycle that relied on steam power and charcoal. The Europeans devised many versions of the motorcycle and eventually motorcycle designing moved to America. The first motorcycle that was sold for the common man was in 1984 developed by Hildebrand and Wolfmuller and since then there was no stopping as the bicycle makers started designing motorcycles.
In 1902 the bicycle maker Triumph installed a Belgian made engine and launched their first motorcycle and the following year Harley Davidson came up with their bikes.
When did India get its first bike?
Motorbikes have become such an integral part of very average Indian family so it is all the more intriguing to explore the history of bikes in the country. The bike entered the Indian arena rather very late and was launched out of necessity. In 1955 the first ever motorbike was bought out by Royal Enfield Company that was a 350cc-powered engine popularly known as Bullet, which arrived in India to aid the army and police officials for improving their patrolling duties. This Bullet got its original form in Chennai. The bike soon touched fame and popularity and many Indian homes greeted the Royal Enfield bikes. The bike scene gaining momentum motivated the Escort Motor Company to launch their version called Rajdoot that proved to more efficient and fulfilled most requirements of the middle-class Indian families. The Rajdoot ruled the Indian roads for a long period.
Looking at the fast growing motorbike market in India, the Japanese two wheeler icon Yamaha launched their series of superior bikes for the Indian consumer and was ranked the numero Uno for almost a decade.
Soon other foreign companies gauged the popularity of motorcycles in Indian market and the immediate ascender was Hero Honda that featured bikes, which were fuel efficient and had no maintenance cost, which raised the bike to fame in not time. Soon to follow the race were the Indian companies Bajaj Motors and TVS motors who joined the celebration of bikes in the country. And today India has variety of bikes; you name it and you have it. There are most basic models to Super bikes that cater to all class of people. It definitely will not be an over-statement to say that India has a leading edge in this bike-race.
High-end motorbike firms ready to rev up India sales
New Delhi: Biking culture is evolving in India and so is the demand for super sporty bikes (priced around Rs 10 lakh and above). Consequently, players like Suzuki Motorcycles India (SMI) and India Yamaha Motor (IYM) are getting higher volumes than earlier estimated and have set high targets for 2009.
While Suzuki has sold 26 and 29 units of Hayabusa and Intruder (priced at Rs 12.5 lakh each) respectively since its launch in November last year, Yamaha managed to sell 107 units of R1 and MTO1 (Rs 10.5 lakh each) in 2008 as against the target of 50-60 bikes. Even Honda Motorcycle and Scooter India (HMSI) is betting big on the segment and has recently launched CB1000RR (which is priced at Rs 12.5 lakh) and CB1000R (priced at Rs 9.5 lakh). “The top-end high performance bikes constitute a super niche segment that is neither dependent too much on finance and nor much impacted by the economic slowdown. Hence, the demand for such bikes is growing in India even when other two-wheeler segments are witnessing a slowdown,” says Sanjay Tripathi, division head (product planning), IYM. The company is expecting 100% growth in sales of R1 and MT 01 in 2009 at 107 units. According to industry estimates, a little over 500 such super bikes are sold in India in a year, a very niche segment compared to an estimated 70 lakh two-wheelers that would be sold in the country this year, as biking culture continues to be at a very nascent stage in India even now. “Indians have an aspiration and with these bikes we are trying to develop the fun culture that is prevalent in the US and Europe,” says NK Rattan, vice president (sales and marketing), HMSI.
Though HMSI is yet to start the booking for these super bikes Rattan said there has been a good response and certain number of confirmations has come but the actual process will start only in April.
Imported high-end bikes are launched by Suzuki and Honda recently. These bikes are aimed to a rich people in India. Suzuki which launched Suzuki Hayabusa and Suzuki Intruder in November, 2008, sold around 100 units of super bikes which is priced about 12.5 lakh per unit. Company plans to sell other 100 units.
On the other hand, Honda Motor which has launched CBR1000RR(12.5 lakh) and CB1000R(9.5 lakh), has been able to sell 21 high speed imported bikes, coming at a premium of Rs 12.5 lakh and Rs 9.5 lakh within three months of their launch. Mumbai, Kolkata, Bangalore, Chennai, Delhi and Pune are the important platforms and company plans to sell other 100 units in this fiscal.
Good Response for High-End Bikes in India: Suzuki
Nano may be hogging the limelight but Japan’s Suzuki is quietly smiling having sold over 50 units of the bike, each priced 12 times the Rs one lakh ‘People’s Car’ from the Tatas’ stable.The bikes Hayabusa and Intruder are powered by engines that are up to three times more powerful than the Nano. While Hayabusa is powered by a 1,340cc engine, Intruder has a 1,783cc V-twin engine in contrast to Nano’s 623 cc engine.
Besides attracting common biking enthusiasts, the company has also succeeded in luring Bollywood actor John Abraham to buy a fresh Hayabusa.
“These bikes are for those people who have money and also enjoy biking. We have got good response and sold 51 units so far in the country,” Suzuki Motorcycle India Pvt Ltd (SMIPL) Vice President (Sales & Marketing) Atul Gupta told PTI.
The company has sold 23 units of Hayabusa and 28 units of Intruder in Delhi, Bangalore, Pune and Mumbai, he added.
SMIPL, the Indian subsidiary of the Japanese major, had launched the two bikes in November last year and both were priced at Rs 12.5 lakh (ex-showroom, Delhi).
Asked about the customers, who have bought the products, Gupta said: “One of our proud customers of the bikes is actor John Abraham. He owns a Hayabusa
HMSI (Honda Motorcycle & Scooter India, Private Limited) sells 21 high-end bikes costing Rs 12.5-Rs 9.5 lakh
CHANDIGARH: Honda Motor Company subsidiary, Honda Motorcycle &Scooter India on Saturday said it has been able to sell as many as 21 high speed imported bikes, coming at a premium of Rs 12.5 lakh and Rs 9.5 lakh within three months of their launch in the country.
“We have been able to sell 21 our super speed bikes within three months of their launch into the country,” HMSI Head Sales Y S Guleria told reporters here today. The company eyes selling 100 such bikes in the current fiscal, mainly in the metros.
“We have seen the potential of these bikes in big cities like Mumbai, Kolkata, Bangalore, Chennai, Delhi and Pune and we aim to sell 100 units of these bikes in this fiscal,” he said. HMSI rolled out its superbikes Honda CBR1000RR and CB1000R imported from Japan into Indian market at a price of Rs 12.5 lakh and Rs 9.5 lakh respectively.
The company plans to launch a new bike in 100 CC segment in 2009-10 to capture sizeable share in the segment.
“We have plans to enter 100 CC segment and we will launch our new model this fiscal,” he said without divulging about the price of motorbike.
The Japanese major will get models like GS500, GSR600 and RMZ-450 from its stable. It is looking at taking the completely-knocked down kit route which will halve import duties
New Delhi: Having stamped its dominance in the Indian car market, Suzuki Motors is adding power to its two-wheeler business and working on a new India plan. The company – so far a marginal player in the two-wheeler market – is planning to assemble 400-600cc bikes
in India, that could see prices of power bikes come down to Rs 4-5 lakh and make them more affordable for those who love hot wheels.
Suzuki Motorcycle India V-P Atul Gupta told TOI that the company would shortly be sending some of the bikes to Indian vehicle certification agency Automotive Research Association of India (ARAI), Pune, for homologation. “The homologation process is likely to take between three to six months and we can expect some of these
bikes possibly by Diwali,” he said.
The Japanese auto major is looking at taking the completely-knocked down (CKD) kit route which would nearly halve the duties, against the 100% import duty on fully-built units. Though small in numbers, the market for 500-cc motorcycles could expand in coming years as income levels go up and manufacturers like Suzuki start local manufacturing that would offer the best-in-technology products. At present, Royal Enfield is the sole manufacturer of 500 cc bikes in India. The company could get models like GS500,GSR600 and RMZ-450 from its international stable. Suzuki India has already brought a few models of its legendary 1300 cc Hayabusa for display which might also hit the roads along with its 1600cc B-King (priced at Rs 10-lakh plus).
Gupta said government’s move to relax certification process for 800-cc plus vehicles (by accepting certification from EU against existing policy of only from the country of origin) would also help in launch of these bikes in India.
But mass market is the one which is going to be bread and butter for the company, like any of its competitors. Suzuki has lined up two new models in 2008, primarily targeted at the urban markets. While one will be in the 150-cc segment, the other could be a premium offering in the 125-cc segment. It is also looking at launching a 200 cc bike, though Gupta said a final decision would be taken closer to the launch. A key element of Suzuki’s plans – which includes doubling of investment and production capacity by 2010 – is the expansion of sales network. Gupta said, it intends to set up a network of 400 outlets over the next three years, compared to 140 stores at present. And, during this period its investment could reach Rs 700 crore while the Gurgaon facility could be churning out 4 lakh two-wheelers by 2010, compared to 1.7 lakh at present.
EXISTING FOREIGN BIKES IN INDIA
CAPACITY 1000 CC
PRICE Rs 10 lakh
SUZUKI’S LAUNCH PLANS IN INDIA
CAPACITY 400-600 CC
PRICE Rs 4-5 lakh
The primary research of the project
The first thing to do in this primary research was to visit at least two showrooms of high end bikes
We decided to visit pro-biking showroom of Bajaj and Yamaha showroom
The following scenarios occurred during the visit of pro-biking showroom
We asked the dealer regarding Kawasaki Ninja 250R
Kawasaki Ninja 250R
The first thing we asked to the dealer was the price on road, we came to know it was Rs 2, 92,000.Later on we asked about the market for these high end bikes, the dealer smartly answered that Bajaj has been able to establish it market in these segment successfully due to the product of Pulsar and this is another initiative to attract the youth as it has been built specially for the age group of 20-30 who love these kind of bikes.
He also told that nowadays we see those even lower middle level income groups are purchasing bikes like avenger, pulsar 200, pulsar 220 etc. so it would not be much difficult to target the middle and upper middle class of people to purchase Ninja250R.
Another thing is there is already a buzz in the market about this bike the awareness is already there so hope fully there will definitely be a better future for these kinds of bikes.
The other showroom was that of Yamaha
The interactions with the dealer are as follows
Here the first thing we asked regarding this bike was the price on road, the dealer replied that the price on road differs from states to states, but, on an average it was 12.34 lakhs on road.
The other thing we asked was that of the popularity and the future of this Yamaha bike, the dealer replied that the future for Yamaha is bright as already the model Yamaha R1 is quiet popular among the youths and the demand for these kind of bikes are increasing at a better speed
Later on he continued to praise the bike and the feel that it gives while riding and all that, he also told about John Abrahim who is the Brand Ambassador of Yamaha
The other thing that we did was the consumer interview
The first interview was with Fazeel Varteji who owns a Yamaha R1
The interview was as follows
Why did you bought Yamaha R1?
The reason that Fazeel bought this bike was because of the speed that this bike brings with it
Did price played any role in while making a purchase decision?
Not really as I just wanted to buy this, price really not bothered him if it was above the actual price he would have bought this bike only not ant other bike.
Why not Hayabusa or Honda CBR?
Hayabusa still not make me feel satisfied as I personally dislike the design, talking about CBR he said it was never really in his mind to purchase a sports bike other than Yamaha as they are the leader internationally.
Similarly the other interviews also explained different reasons for purchasing a particular brand. But one common thing remains the same in all the interviews that you should have a deep pocket if you are willing to purchase a High End Bike.
Later on we were given the task of preparing the questionnaire for the consumers and the the average annual income of the respondents were supposed to be 5 lakhs or above that.
In the questionnaire we were asked to select five features of five particular Brand of High end bikes
We selected the following brands
Kawasaki Ninja 250R
Reason for selecting the above brands
The main reasons for selecting the above brand are as follows
When it comes to high end bikes there is no other bike in this world which can match the likes of Yamaha. Yamaha as a brand has established a good repute in the biking industry. Also, the youths who like watching MotoGP definitely like the Brand Yamaha as the fan following of VALENTINO ROSSI is unmatchable. He is one of the most successful motorcycle racers of all time, with 9 Grand Prix World Championships to his name.
This bike became popular mainly due to the hype that the Bollywood film DHOOM created. This bike became the dream for the bike lovers. Also when John Abrahim(Recognized Bollywood Actor) himself owns this bike the followers of him would definitely like to purcahe this bike.
Kawasaki Ninja 250R
When you talk about Bajaj the most common name that comes into minds of the consumers is the Bajaj Pulsar. In order to steal the competition Bajaj collaborated with Kawasaki to lauch this bike. This bike definitely has one big advantage i.e. the price.
The single reason for selecting this bike was that we had no other option to do so. Honda is slowly trying to make a mark in the Indian biking industry. It has launched this bike in order to compete with the rivals who are mainly YAMAHA and SUZUKI in this segment. However, Honda is a recognized brand so the option of taking this bike makes some logic.
This bike already has a huge demand from the bike lovers. This bike and brand is unique in its own way. People get themselves attached to this brand and treats this bike with respect. It is already a huge hit brand in U.S and with the launch in India this bike will be a success among the bike lovers especially who love travelling.
So for the above reasons we selected these brands.