two-wheeler special report

Report: P.TharyanInputs: rahul Kapoor, S Madhavan,

Tripti Singh and Jasbeer Kohli Photography: Mohd. naSir

May 2015 I 49

Wheeler Special

tWo-Wheeler Special

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The Indian two-wheeler industry comprising scooters, motorcycles and mopeds is today the largest in the world. According to the Society of Indian Automobile Manufacturers (SIAM), more than 18 million units were sold by two-wheeler manufacturers in India. To be precise 18,462,178 units for the financial year ended

March 31, 2015. Of these 16,004,581 units were sold in India and around 2,457,597 units were exported.

Among all the two wheelers sold, motorcycles accounted for the largest chunk with total sales of 12,995,340 units, followed by scooters with 4,701,656 and mopeds (only TVS Motor India manufactures mopeds) with 765,182 units.

The actual figure of two wheelers sold is a little more if one takes into account the sales of a few companies like Hero Eco (manufacturers of electric two wheelers), DSK Motowheels (distributors of Korean motorcycles Hyosung and Italian motorcycles Benelli) and Indian Motorcycle (part of the Polaris group of USA). New entrants like UM Motorcycles of USA (the company has partnered with Lohia Auto) too would soon be joining the two-wheeler race in India, thereby increasing the size and clout of the Indian two-wheeler industry. Ducati India in its new avatar has also begun selling super bikes in the country after having opened new dealerships in Mumbai, Delhi and Gurgaon.

In short, action is expected to continue in the two-wheeler market. The market is no more dominated by commuter bikes alone. Hero MotorCorp, though no more Hero Honda, still continues to the real Hero of the Indian two wheeler space. Even though it’s run into a bit of rough weather with the shutting down of Erik Buell Racing (EBR) where it had invested a sizeable sum of money (US $25 million), the company is confident of maintaining its leadership position because of its extremely strong R&D initiatives.

The fortune of two-wheeler players will, however, depend on the monsoons in India. The Indian weather department has predicted

50 I May 2015 May 2015 I 51

World leaderIndIan Two-wheeler IndusTry

Two wheeler DomesTic sales 2014-15Hero MotoCorp 6431686

Honda Motorcycle and Scooter India 4263967

TVS Motor Company 2107696

Bajaj Auto 1770778

India Yamaha Motor Pvt Ltd 565273

Suzuki Motorcycles India 340506

Royal Enfield (Eicher Ltd) 324055

Mahindra Two Wheelers 165344

Piaggio Vehicles 28062

Harley-Davidson Company India 4641

Triumph Motorcycles (India) Pvt Ltd 1326

India Kawasaki Motor Pvt Ltd 1247

Two wheeler exporTs 2014-15Bajaj Auto 1521306

TVS Motor Company 325071

Hero MotoCorp 200017

Honda Motorcycle and Scooter India 188328

India Yamaha Motor Pvt Ltd 171241

Suzuki Motorcycles India 32736

Mahindra Two Wheelers 11773

Royal Enfield (Eicher Ltd) 7115

Piaggio Vehicles 10

Harley-Davidson Company India 0

Triumph Motorcycles (India) Pvt Ltd 0

India Kawasaki Motor Pvt Ltd 0

As per SIAM data

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that the year 2015 will see weak monsoons. Monsoons have a direct bearing on rural purchases of consumer goods, including two wheelers. Mass market motorcycle sales depend a lot on rural markets and it is estimated that this market accounts for as much as 50pc of the demand for such motorcycles. One must keep in mind that around 60-65pc of the Indian motorcycle industry is dominated by 100 to 110cc commuter bikes.

Meanwhile, Honda, the erstwhile partner of Hero Honda, is desperately trying to inch closer to its beleaguered partner Hero. But the latter (Hero MotoCorp) has an incredible lead over its rivals. The other Japanese bike major India Yamaha is also clawing its way to the top with new model launches in both the motorcycle as well as the scooter segments. The third Japanese bike maker Suzuki Motorcycles may be low on numbers here in India but they have tasted success with their Gixxer model. The once upon a time heroes Bajaj Auto led by the witty and gritty Rajiv Bajaj is following its own strategy. It’s now got almost a 50pc equity holding in KTM of Austria and now the company exports these motorcycles built in India. Bajaj is taking Prime Minister Narendra Modi’s “Make in India” call and giving it an international thrust. “We are very proud that as an Indian company we own KTM, we are proud that 1/3rd of all KTMs made and sold worldwide come out of Pune, we are very proud that from Pune we export to the US, all over Europe, Japan, Australia and China because we own a brand that has a place in those markets,” he says.

Chennai-based TVS Motor Company is bracing itself for a new onslaught on the Indian market. Though its Apache bikes are doing extremely well, it’s their soon-to-be-launched under 500cc motorcycle

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52 I May 2015 May 2015 I 53

with BMW Motorrad that is keenly awaited in India. The motorcycle is expected either in the second half of 2015 or early 2016. That will fetch the company good numbers as these motorcycles with BMW Motorrad collaboration will also be exported to the global markets.

Automobile giant Mahindra & Mahindra’s foray into the two wheeler business is slowly yielding results. With limited products in the scooter as well as motorcycle segments, the company is expected to witness increased sales, very soon,

provided they launch more models in the country. But for the time being their struggle continues. Faring even worse is Piaggio Vehicles with sales of its Vespa scooters plunging in the domestic market. There is no official record of the sales of Moto Guzzi and Aprillia motorcycles that come under the Piaggio umbrella and were showcased at the 2014 Indian Auto Expo.

In the big bikes category, there is another set of players regaling in the increased demand for their motorcycles. Royal Enfield motorcycles, part of Siddharth

Lal controlled Eicher, is pleasantly surprised by rise in its domestic as well as global sales. Other players seeing a positive growth in their India story are the likes of Harley-Davidson India and Triumph Motorcycles India. Indian Motorcycle from Polaris of USA is waiting with bated breath for their large consignment of Indian Scout motorcycles to come to India by June-July 2015. Bookings for these bikes have been very encouraging. Last but not the least, even though Kawasaki motorcycles are sold through Bajaj Auto, the Japanese

is selling higher engine capacity motorcycles on its own through exclusive dealerships. They too are hopeful that the Indian market gets better for their products. We give you a brief note on each of the players, interspersed with interviews of some leading two-wheeler champions. We have also included inputs from a few component makers who are dominant in the two wheeler segment. These include Varroc, Continental, Bosch and Elofic, each known for its critical components manufactured for two wheelers.

bajaj auto limited

No more a scooter manufacturer, Bajaj Auto is now in the exclusive domain of motorcycles and three-wheelers. Bajaj Auto has three manufacturing plants in India—one each at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttrakhand. Waluj is the export hub of the company where it manufactures Boxer, CT 100, Platina, Discover and Pulsar range of motorcycles. It also makes three-wheelers here. At Chakan, the motorcycle range includes Pulsar, Avenger, Ninja and

KTM. The Chakan plant has core competencies in manufacturing high end sports bikes. At Pantnagar, the company makes the Platina and Discover motorcycles.

Through its Netherlands based subsidiary, Bajaj Auto International Holdings BV, the company holds around 48pc equity stake in KTM AG of Austria (KTM), Europe’s second largest sport motorcycle manufacturer.

Now all KTM motorcycles

MoTorCyCLES

DOMESTIC SALES EXPORTS

FISCAL 2013-14 FISCAL 2014-15 FISCAL 2013-14 FISCAL 2014-15

(engine capacity > 75cc but less than or equal to 110cc) models: boxer, ct, platina, discover

1173036 834086 838129 876631

engine capacity > 110cc but less than or equal to 125cc) models: boxer, platina, discover, Ktm

272368 113441 137771 201933

engine capacity > 125cc but less than or equal to 150cc) models: boxer, discover, pulsar

463241 587743 197988 252846

engine capacity >150cc but less than or equal to 200cc) models: Ktm, pulsar

92174 105688 127120 145618

engine capacity >200cc but less than or equal to 250cc) models: pulsar, avenger, ninja

93290 122049 12587 21901

engine capacity >250cc but less than or equal to 350cc) models: ninja

833 618 2 3

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engine capacity >350cc but less than or equal to 500cc) models: Ktm

3949 6817 9576 22374

engine capacity >500cc but less than or equal to 800cc) models: ninja

339 336 0 0

are sold through exclusive KTM dealerships which are 175 in number. These are part of Bajaj Auto dealerships which number 650 currently. Bajaj Probiking outlets which were conceived around 2005 have now been converted into KTM outlets. Bajaj Probiking outlets were set up with the objective of making it the automatic destination for bike enthusiasts looking for sports bikes. Now apart from all the four different KTM models beings sold through this dealerships, it also stocks the Kawasaki Ninja 650R, the Ninja 300, Z250 and the Er-6n motorcycles.

For the financial year ended March 31, 2015, Bajaj Auto sold 3,292,084 motorcycles as against 3,422,403 units in April-March 2014 in the domestic market, thereby recording a negative growth of 4pc (-).Unlike KTM where Bajaj Auto almost has a 50pc control, its three decades long relationship with Kawasaki of Japan is more technical in nature. But around 2013 this relationship underwent a strategic shift. Though both the companies were jointly selling Kawasaki range of Ninja bikes, the Japanese company decided to ride solo in the Indian market with its heavy superbikes.

Kawasaki has also moved the assembly operations of the Ninja range of bikes into its 100pc subsidiary, India Kawasaki Motors, which is the Indian arm of Kawasaki Heavy Industries, Japan, and was set up in July 2010.A new factory was created in the Bajaj Auto

Akurdi campus to assemble around 5,000 units of motorcycles a year using completely knocked down (CKD) kits.

Bajaj recently launched the new Pulsar Adventure Sport series in India. Two variants are available, the Pulsar AS 200 priced at 91,550/- and the Pulsar

AS 150 for 79,000/- (both ex-showroom Delhi). The company had launched the Pulsar RS200 on March 26, 2015. Eric Vas, President , Motorcycles Business, Bajaj Auto Ltd noted that, “As of today we have over 2000 bookings for the motorcycle. When we had launched it, we had said that our target was to sell

2500 bikes per month. It’s been a little over two weeks and we have almost reached our target if you look at it”.

Bajaj Auto launched five new models in 2015 and is eyeing growth of over 35 per cent in the motorcycle segment. Vas noted that his company hopes to sell around 40,000 units of the newly

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Recently launched Pulsar AS200

Picture courtesy: KTM, Photographer Mitterbauer H


54 I May 2015 May 2015 I 55

launched CT 100 cc models, over 10,000 units from Pulsar Adventure Sports series and 2,500 from the Racing Sports bike every month. The company exports over 20,000 units a month of the 100-cc Platina electric start. Early this year, Bajaj Auto launched the 100-cc Platina (Electric Start) and

also recommenced making the CT-100 bike that it had discontinued in 2006. In March, it launched three new Pulsar models – two in a newly created Adventure Sports segment and one Racing Sports bike.

Rajiv Bajaj, Managing Director of Bajaj Auto spoke to the media in

New Delhi about a lot of his plans.On the Pulsar 400 he said, “The

400 we would like to see in the form of a cruiser, as we showed at the last Auto Expo. So that is also scheduled to be launched at some point in this financial year. So when that happens, the Pulsar 400 at that time will become the flagship

model of the Pulsar brand”. “We would like to inspire

customers to pull money out of their pocket by showing them something exciting, something sexy, something that makes them feel good, which I think is a better way [strategy], and this is our way,” Bajaj noted.

Rajiv’s Gyan... rajIv Bajaj speaks To medIa In aprIl 2015 BesT QuoTe

“For motorcycles this year we are looking at 14 new markets and for three wheelers about 12 or 13. I don’t know the exact number...I hesitate to name any markets specifically because we are a marketing company, so to arrive first in that market is very important.... we would like to get there before someone

else and that is very important to be very competitive...”

“Just as 60,000 Pulsars are sold in this market, between Pulsar and KTM we are exporting almost 30,000 motorcycles every month which is a huge number of motorcycles.”

“Pulsar is a milestone. Secondly, Pulsar is a laboratory of continuous innovation and improvement by doing things differently in different areas of the motorcycle. And thirdly, Pulsar is a strategy. In 2007, Pulsar was the basis of which Bajaj tied up with KTM and has since moved on to acquire almost half of KTM. We are very proud that as an Indian company we own KTM, we are proud that 1/3rd of all

KTMs made and sold worldwide come out of Pune. We are very proud that from Pune we export to the US, all over Europe, Japan, Australia and China because we own a brand that has a place in those

markets. So without the Pulsar, I don’t think KTM would have happened...”

“...I don’t just want to make for India, I want to ‘Make in India’ for the world.... I would like to say as Bajaj Auto, I want to be a dominant player in the world. I’m not saying I want to be No.1. But I would

like to be one of the top in my field in the world. That means I can narrow my focus as far as the products are concerned. There is no example of a successful company that does every segment all

over the world, continuously and makes a lot of money...”

“In the SIAM, we keep debating that motorcycles are very unsafe. There are x number of accidents on two wheelers. If I must say in a light hearted way, the government gives a contention that we can’t make wearing a helmet compulsory, but ABS must be a compulsory. A customer will not spend 500 rupees on

a helmet, but ABS worth 10,000 rupees must be compulsory...”

“....If I could positively interpret the more recent slogan of ‘Make in India’ which is what we are being urged to think of all the time. I think in all humility I would suggest this (exporting Bajaj bikes) as one of the best examples of ‘Make in India’. Despite all the inefficiencies or the complexities that exist in this market, it is possible to produce, to design, to make and sell a world class motorcycle out of this

country. Remember that we have been doing that for over 10 years now so we did not need a slogan to push us in that direction...”

“...For the last 30-40 years, the world’s largest car maker has been General Motors, because people come to me and say General Motors makes small cars, big cars, cheap cars, expensive cars,

vans, SUVs, etc. but the only thing General Motors does not make is money. Every five years the US government has to bail out General Motors. This is after building 9 million cars a year. Look at the

opposite strategy, the strategy of Harley Davidson, a company that makes only 300,000 motorcycles a year, not 3 million. They make a few billion dollars in profit. I want to be Harley Davidson. I don’t want to

be General Motors… so which kind of company you want to be, it is your choice...”

“...There is no manufacturer today, who can stand up and say honestly that an electric vehicle is a commercially viable vehicle. The same is the situation in India also. All electric vehicle

manufacturers are saying that without governments help, it is not possible. Government help is basically subsidies and we are against subsidies… Furthermore, we must consider any problem as a holistic problem... it is a contention by some people who know the subject better than me that

producing electric vehicles does not reduce pollution for the world because the pollution reduced by using the vehicle in the city, is more than compensated by the pollution produced when the

battery is produced in the factory outside the city. So are we really solving the problem? Or just to look good in front of the media we are raising certain slogans or making certain statements?...”

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MoTorCyCLES



(engine capacity >200 but less than or equal to 250cc) models: Z250

0 101 0 0

(engine capacity >250 but less than or equal to 350cc) models: ninja 300

554 469 0 0

(engine capacity >500 but less than or equal to 800cc) models: ninja 650

350 289 0 0

(engine capacity >800cc but less than or equal to 1000cc) models: Z800, ninja Zx-10r

47 257 0 0

(engine capacity >1000cc but less than or equal to 1600cc) models: ninja Zx-14r, ninja 1000

44 131 0 0

56 I May 2015 May 2015 I 57

Kawasaki and Bajaj Auto Ltd have more than 30 years of solid relationship. They have a technical collaboration. In 2013, though both the companies were jointly selling Kawasaki range of Ninja bikes, the Japanese company decided to ride solo in the Indian market with its heavy superbikes.

Kawasaki has also moved the assembly operations of the Ninja range of bikes into its 100pc

subsidiary, India Kawasaki Motors (IKM), which is the Indian arm of Kawasaki Heavy Industries, Japan, and was set up in July 2010. A new factory was created in the Bajaj Auto Akurdi campus to assemble around 5,000 units of motorcycles a year using completely knocked down (CKD) kits.

Kawasaki imports its bikes in Completely Built Unit (CBU) form from Kawasaki Japan and the

DSK Motowheels which has two separate businesses with Hyosung of South Korea and Benelli of Italy, forayed into the high-end motorcycles a few years back. DSK Motowheels was established in 2012 and is part of the DSK Group, a diversified business group with a turnover of over Rs. 5000 crore.

Its first foray into the growing high end motorcycle sector began in 2012 when it got associated with Hyosung, part of KR Motors of South Korea. DSK has a CKD plant in Wai in Maharashtra. Shirish Kulkarni, Chairman, DSK Hyosung, bought the Hyosung business from Garware Motors. Garware Motors, a unit of Garware Bestretch Ltd, was the technical alliance partner of Science and Technology (S&T) Motors, the South Korean owner of the Hyosung brand of motorcycles, which were first introduced in India in 2005 by

Kinetic Engineering Ltd. Kinetic imported and sold the 250cc Comet and Aquila models.

In 2010, Garware Motors announced a technical alliance with S&T Motors under which they imported the parts of the 650cc and 700cc models from Korea and assembled them in India. Unable to run the business well, Garware’s Diya Garware Ibanez sold the business that included all the dealerships to Kulkarni’s DSK Motowheels. Today the company sells the GT250R, GT650R, GT650N, Aquila Pro, Aquila 250 and ST7 in India.

Earlier this year, DSK associated with legendary bike maker Benelli of Italy. It launched five superbikes in the 300cc to 1131cc engine capacities range. Bookings and deliveries opened with the inauguration of DSK Benelli – Mumbai showroom on March 19, 2015.

Ducati India did not particularly have a great start in India with the Shreyans group of Ashish Chordia. It finally decided to come on its own into India in 2015 with its 100pc subsidiary Ducati India Pvt Ltd. It has opened up world class dealerships in Mumbai, Delhi and Gurgaon.

Infinity has opened a Ducati dealership in Mumbai, whilst AMP has established dealerships in Delhi and Gurgaon.

In addition to a new dealership opening in Bangalore shortly, Ducati India is also currently identifying, confirming and training a network of highly qualified and enthusiastic dealers ready to offer the 2015 models in other key cities.

In a press release, Ravi

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esy:

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same is retailed through exclusive Kawasaki showrooms.

IKM has launched superbikes ranging from Ninja ZX-14R, ZX-10R, Ninja1000, Z1000, Z800 and Versys1000. In April 2015, it launched one of its top models, the Ninja H2. Kawasaki current has showrooms in Pune, Delhi, Bangalore, Chennai and Kolkata. The company hopes to introduce one or two more models in the current fiscal 2015-16.

“I am sure that this Ninja H2 would further enhance brand image of entire Kawasaki,” said Yoshitaka Tamura, Managing Director, India Kawasaki Motors during the launch of the Ninja H2 in New Delhi. According to SIAM data, the company sold 1247 units in fiscal 2014-15 as compared to 995 units the previous year. The company did not export any vehicles.

Avalur, Managing Director, Ducati India Pvt Ltd confirmed, “Our intention was to

open in India with an official Ducati presence only when we were absolutely ready. I can now confirm that our after-sales service centres will ensure exactly the same high standards achieved across Ducati’s global network. We really appreciate the efforts put in by AMP and Infinity in setting up these world class dealerships in record time.” Ducati’s entry is perfectly timed to receive the brand new Ducati

Scrambler. Ducati’s official presence in India will be

further underlined by the availability of the

Italian manufacturer’s range of motorcycles, including the Diavel, Hypermotard, Monster and

Superbike, the company noted.

The Benelli models launched included the TNT 300 – In-line two cylinder 300cc engine, TNT 600i - In-line four cylinder 600cc engine, TNT 600 GT - In-line four cylinder 600cc engine, TNT 899 - In-line, three cylinder 898cc engine and TNT R - In-line, three cylinder 1131cc engine.

DSK Motowheels will be assembling and selling Benelli bikes across the country and supporting them with a backup of

service and spares. Soon after announcing its tie

up with Benelli, DSK Motowheels revealed that it had registered more than 300 bookings of the Benelli super bikes within a week from launch of their five different models. The registrations were done across all nine DSK Benelli showrooms in the country i.e. Pune, Mumbai, Bengaluru, Chennai, Amdavad, Delhi, Hyderabad, Kolkata and Goa.

india KawasaKi motors dsK motowheels (hyosung and benelli)

ducati india

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Recently launched Kawasaki Ninja H2

Ducati Daivel/Picture courtesy:Ducati


58 I May 2015 May 2015 I 59

Hero Electric is part of the Naveen Munjal controlled Hero Eco Group which makes electric two wheelers. Based in Ludhiana, the Hero Electric plant can make 200 vehicles a day. Munjal started his company around 1999-2000 when he forayed into electric two wheelers. The journey for him has been painful, yet exciting. Painful because government incentives dried up for this sector a few years back, only to be revived in 2015. Munjal is, however active in the global market after his group acquired UK-based Ultra Motors which opened the world to the western markets. Hero Eco Ltd controls the UK and German operations for electric vehicles.

Headquarted out of London with a subsidiary in Berlin, it controls the Swiss and German markets. Hero Eco Inc controls the US operations for electric vehicles.

Sohinder Gill, Director-Corporate Affairs, Society of Manufacturers of Electric Vehicles and CEO- Global Business, Hero Eco had told Motown India recently, “The journey has been very long and tardy. Around 2008, people used to simply grab electric vehicles. That time the US dollar was worth around Rs 45. Half of the components were imported and without subsidy dealers started buying the vehicles. Soon thereafter there were many dealers around the country for electric vehicles

Harley Davidson India came into the country around 2010 as a fully owned subsidiary of Milwaukee (US) based Harley Davidson. It was the first Harley entered as a fully owned subsidiary and when it set up a plant in Bawal, Haryana it was the second plant outside of US after Brazil.

When Motown India had interviewed Anoop Prakash, Managing Director of Harley Davidson India in April 2012 he had said, “We intend to be Harley’s biggest market in Asia by units in the next 5 to 7 years.”

According to SIAM, the company has sold 4641 units in fiscal 2014-15 as compared to 1927 units sold in 2013-14. The increase in sales can be directly attributed to the affordable Street 750 that was launched during the FY2015. The company sold 3029 units of the model.

Today, the models sold by Harley include the Street 750, SuperLow, Iron 883, Forty-Eight, Fat Bob, Street Bob, Night Rod Special, Fat Boy, Heritage Softail Classic, Breakout, Street Glide Special and CVO limited.

InTervIew wITh sohInder GIll, CEO- Global Business, Hero EcoElectric scooters suffered a lot in terms of sales in the last couple of years because of lack of incentives from the government. Can you briefly tell us how badly your company was hit and what were the numbers for the 2014-15 fiscal and the previous fiscal too?The industry as a whole took a nose dive after discontinuation of AFSTP scheme under MNRE in 2012. During this scheme Industry had touched 1 lakh units which was a good figure. However after the discontinuation of this scheme the industry came down to 20,000 units last year with major E Bike players stopping their operations. Although we continued to hold the No.1 position in the market, there were hardly any volumes and any worthwhile competition. Hero Electric is the only company that continued selling and servicing the products, including those of the competition, pan India during those tough times.

Here onward with implementation of NEMMP, we expect a major turnaround in EV business, especially in electric 2 wheelers. We are all geared up to be the leading player in shaping up the electric mobility revolution in India and contribute the maximum in NEMMP vision of 6 million EVs on Indian Roads by 2020

With the new incentives from the government, how do the sales look for your company? how much more affordable have your products become after this government initiative?The government incentive for sure has pumped the much needed oxygen into our system. The prices

of E Bikes have gone down significantly and there is positive response from the market. Example, one of our best selling product Maxi is now priced at less than 20,000 in the Delhi market and the average price of all models are now 7,500 to 10,000 lower.

However, high VAT and road tax in some states is a dampener that is holding back the breakout of the sales in some states like UP, Punjab, etc. If there can be a zero VAT structure in all states for EVs, on lines of the notification from the government that VAT for electric vehicles should be between 0 to 5pc, it’ll majorly complement the efforts of NEMMP in reaching the goal of 6 million per year electric

vehicles by 2020.

Electric two wheelers have yet to catch on in a big way in the two wheeler industry. What makes you think that this segment will see a growth in the coming years? do also share some plans about your future products.

India is a 2 wheeler nation and a major chunk of population uses it every day. There is no doubt on the future demands of 2 wheelers which will continue to rise. Now if the same buyer is given an alternative which is economical, Eco friendly and more convenient, we don’t expect everyone to go for electric two wheelers but those light users with average daily run of 30Km to 40Km will consider it. This number is not small but will be the real drivers for E Bike sales for the time being. Shortly there are plans to bring even High Speed, High Range E Bikes and motorcycles with Li Ion batteries which will suit the requirements of medium and heavy users. So with this thought in mind, I feel we are at the right place at the right time.

MoTorCyCLES



(engine capacity >500 but less than or equal to 800cc) models: street 750

0 3029 0 0

(engine capacity >800 but less than or equal to 1000cc) models: superlow, iron 883

1132 818 0 0

(engine capacity >1000cc but less than or equal to 1600cc) models: Forty-eight, street bob, Fat bob, night rod special

540 489 0 0

(engine capacity >1600cc) models: Fat boy, heritage soFtail classic, breaKout, street glide special, cvo special

255 305 0 0

from all manufacturers. We realised that there were around 28 manufacturers of electric vehicles, of these a majority were dealers and the rest were serious players. But then later sales took a hit. Then the government came out with an adhoc subsidiary through

MNRE which demonstrated more than enough that as soon as the government comes with a subsidy and the threshold price is changed, the volumes go two or three times higher. It became a very good case study for the government and for us to prove the point that there is

a necessity of bringing down the prices of electric vehicles which manufacturers cannot do on their own”.

The worst period for Hero Electirc was unfortunately when the subsidy was withdrawn under MNRE. Electric two-wheeler sales

dropped from 100,000 units in 2011-12 to 42,000 in 2012-13 and 21,000 in 2013-14. It will become difficult for us to survive if the NEMMP subsidies do not come soon.” Good days may just have started for Hero Electric and the Hero Eco group as a whole.

harley-davidson india

hero electric

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Hero Photon

A new model in the pipeline

Street 750


hero motocorp

honda motorcycle & scooter india (hmsi)

60 I May 2015 May 2015 I 61

Brijmohan Lall Munjal, Chairman of the US $ 4 billion+ company Hero MotoCorp once stated in his annual report “I will end here with the refreshing thoughts of champion Australian swimmer Ian Thorpe, who once confessed that when he goes out to race, he does not try to beat opponents, he only tries to beat himself. We too, must think like Thorpe as we race against ourselves into the future.” Munjal is spot on with his thoughts. Hero MotoCorp is today the world’s largest two-wheeler maker.

Hero MotoCorp sold a record 6,631,826 units of two-wheelers for the financial year ending March 31, 2015, registering a growth of 6.2 pc over the corresponding period last year when the company had sold 6,245,960. The company stated that FY 2015 was a year of milestones at Hero MotoCorp – in terms of its sales performance, expansion of its global footprint and as well as product innovation and customer engagement.

Hero MotoCorp sells a range of motorcycles and scooters. The two scooter models that it makes

are Pleasure and Maestro. The motorcycle range includes the likes of HF Dawn, HF Deluxe, Splendor, Passion, Glamour, Ignitor, Achiever, Hunk, Xtreme, Impulse, Karizma.

“Scooters are already almost one-third of the overall two-wheeler market in the country. In the financial year 2014-15, we became the highest scooter exporter in India. We exported 79,956 units of scooters – the highest by any manufacturer. In the domestic market as well, our scooters have grown by healthy double digit during FY’15. Both our scooter brands – Pleasure and Maestro – with their sharp positioning for women and men respectively, are doing very well. We will be launching some more new models in the coming months to augment our scooter portfolio,”

a company spokesperson noted.“In FY’15, the industry

continued to remain sluggish due to the overall market sentiments and the slowing rural economy. Even in such challenging market environment, we managed to buck the trend and registered healthy growth, further consolidating our leadership. The journey from here promises to get better and exciting. Thanks to a series of measures undertaken by the new government at the Centre, the

economic outlook is definitely better, and it is likely to fuel growth and help the industry,” he added.

Hero MotoCorp has four manufacturing facilities based at Dharuhera, Neemrana and Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together have a production capacity of 7.6 million 2-wheelers per year. The Neemrana plant which started production recently, has an installed capacity of 7.5 lakhs units per annum.

Honda is the world’s largest manufacturer of two wheelers. Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI ), a 100 pc subsidiary of Honda Motor Company Ltd., Japan , was created in 1999, after splitting with erstwhile partners Hero. It is now the second largest two-wheeler company in India after Hero MotoCorp. The Indian company also contributes around 25pc towards Honda’s global sales of around 18 million units.

HMSI has three plants in India. The Manesar (Haryana) plant has an annual capacity of 1.6 million units. The plant in Tapukara in Alwar district of Rajasthan has a capacity of 1.2 million units and the one in Narsapuram in Karnataka’s Kolar district has a capacity of 1.8 million units. At all these plants both scooters and motorcycles are manufactured. HMSI has announced the setting up of its fourth plant in Vithalapur in Gujarat’s Ahmedabad district with an investment of Rs 1100

crore. This plant which will become operational by December 2015 will have a capacity of 1.2 million units and will manufacture only scooters. This will also take the combined production capacity of the company to 5.8 million units.

In 2015, Honda will be introducing 10 refreshed models and all new products. It started with the CB Unicorn 160cc in January. The current portfolio of HMSI includes the Activa 125, Activa i, Deo and Aviator scooters. The motorcycle range comprises CD 110 Dream, Dream Neo, Dream Yuga, CB Twister, CB Shine, CBF Stunner, CB Unicorn, CB Trigger, CBR 150R, CB Unicorn 160, CBR 250R, CBR 1000RR, CB 1000R, VT 1300 CX and VFR1200F. The top end superbikes are not made in India and are brought here through the CBU route.

For the fiscal ended March 31, 2015, HMSI sold 2,502,347 units of scooters in the domestic market as compared to 1,761,620 units of motorcycles. As for exports,

77,814 scooters were exported out of India, while 110,514 motorcycles were exported. “It’s true that Activa has been our most popular product in India, and its sale is soon to cross 10 million units since its launch in 2001. Today, Honda has the market share of 56pc in the ATSC (automatic scooter) segment which is growing at 2.5 times the industry growth. We estimate that this trend of increased acceptance of automatic scooters shall continue and we will continue to cater to the demand of the customers,” says

Yadvinder Singh Guleria, Senior Vice President – Sales and Marketing, Honda Motorcycle and Scooter

MoTorCyCLES



(engine capacity > 75cc but less than or equal to 110cc) models: hF dawn, hF deluxe, splendor, passion

4484168 4819121 70284 70978

engine capacity > 110cc but less than or equal to 125cc) models: super splendor, glamour, ignitor

794369 734800 29727 24386

engine capacity > 125cc but less than or equal to 150cc) models: achiever, hunK, xtreme, impulse

110130 99961 12127 22669

engine capacity 200cc but less than or equal to 250cc) models: KariZma

36451 25752 1100 2028

SCooTErS



(engine capacity >90cc but less than or equal to 125cc) models: pleasure, maestro

690079 752052 17525 79956

The company’s footprint now spans South Asia, Africa, Central and Latin America, with a presence in Europe via Turkey. The company has set up joint ventures in critical markets and has kick-started

overseas assembly operations. The first such operation has come up in Kenya. Separate equity ventures with local firms in Bangladesh and Columbia are also in place.

The company is setting up a Centre of Global Innovation and R&D in Kukas, near Jaipur in Rajasthan. “This centre is expected to commence operations in financial year 2015-16. It will have around 600 engineers from India and around the world. Last year we hired Dr. Markus Braunsperger from BMW, Germany as HMCL’s Chief Technology Officer (CTO). We also brought in Markus Feichtner from AVL to lead the Engine Design & Development

team,” said the spokesperson. The centre will have self-sufficient facilities for New Product Design, Prototype manufacturing, Testing and Validation, besides, Multiple Test Tracks to simulate all Indian and international test conditions. In the month of March 2015, HMC-MM Auto Ltd., the Joint Venture between Hero MotoCorp Ltd. and Milan (Italy)-based Magneti Marelli, inaugurated its first autonomous ‘Production and Development Centre’ at Manesar (Haryana).

The new centre will serve as a production facility and innovation hub to develop new-generation fuelling systems for HMCL two-wheelers. With the commencement of operations at the Development Centre, HMCL is set to become India’s first two-wheeler manufacturer to have its own EFI Product-line.

Hero MotoCorp holds 60pc equity stake in the new entity

and will invest US$ 27 million over the next 10 years. Both Hero and MM will inject equity of US$ 8.5 million in the ratio of 60:40 over a three-year period. Hero MotoCorp also has a tie up with Austria-based AVL to further enhance the company’s in-house R&D capabilities and engine technologies and a collaboration with the renowned Italian two-wheeler design firm Engines Engineering for Hero’s next generation product line-up

The only irritant that has come the way of Hero MotoCorp is its alliance with US-based Erik Buell Racing (EBR). The latter has announced its bankruptcy and has ceased operations. Hero MotoCorp had invested US $ 25 million ( 156 crore by today’s exchange rate) for a 49pc equity stake in the US based company. This is a major setback to Hero MotoCorp which was hoping to

enter the high-end motorcycles segment through EBR.

However, the company spokesperson noted that “With our strong in-house R&D capabilities, we remain confident that our future product line-up would not be affected despite EBR ceasing operations.”

As part of their Vision 2020, the company plans to surpass 100 million units (it has already surpassed 50 million plus in cumulative sales since inception) in cumulative production, reach an annual bike and scooter sales of 12 million and have more than 20 manufacturing and assembly plants globally. It is targeting a presence in more than 50 countries with a turnover of 60,000 crore

For a Hero that has always been a leader, it’s but natural to expect their winning habits to continue.

World’s most fuel efficient motorcycle - Hero Splendor iSmart

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Honda Activa


62 I May 2015 May 2015 I 63

MoTorCyCLES



(engine capacity > 75cc but less than or equal to 110cc) models: cd 110 dream, dream neo, dream yuga, cb twister

594663 632943 42580 43802

engine capacity > 110cc but less than or equal to 125cc) models: cb shine, cbF stunner

751293 848378 25349 20949

engine capacity > 125cc but less than or equal to 150cc) models: cb unicorn, cb trigger, cbr 150r

301868 241321 41117 41428

engine capacity 150cc but less than or equal to 200cc) models: cb unicorn 160

0 37271 0 1

engine capacity 200 but less than or equal to 250cc) models: cbr 250r

7669 1678 2664 4334

engine capacity >800cc but less than or equal to 1000cc) models: cbr 1000rr, cb 1000r

40 20 0 0

engine capacity >1000cc but less than or equal to 1600cc) models: vt 1300 cx, vFr1200F

9 9 0 0

SCooTErS



(engine capacity >90cc but less than or equal to 125cc) models: activa 125, activa i, deo, aviator)

1902859 2502347 51932 77814

InTervIew wITh y. s. GulerIa, Senior VP – Sales & Marketing, HMSIyours is the only two wheeler company that has such a huge presence in the scooter market in india. With more than 3 million units sold in the 2014-15 fiscal, do you think that hMSi will always be a scooter maker largely as compared to being a motorcycle manufacturer? do you see the ratio tilting towards the bike segment in years to come? For us, as our name - at Honda Motorcycle and Scooter India Pvt. Ltd. suggests, our priorities lie equally in delivering the best products to our customers, be it an ATSC (automatic scooter), or a

motorcycle. It’s true that Activa has been our

most popular product in India, and its sale is soon to cross 10 million units since its launch in 2001. Today, Honda has the market share of 56% in the ATSC segment which is growing at 2.5 times the industry growth. We estimate that this trend of increased acceptance of automatic scooters shall continue and we will continue to cater to the demand of the customers.

As far as overall brand is concerned, we have 60% of business coming from scooters and 40% from motorcycles

and most of it is contributed by 125cc and 150cc motorcycles. In motorcycle segment, Honda has been making new records through active sales. CB Shine became the first 125cc motorcycle in India to sell 30 lacs units. We recently gave the legacy of Unicorn a fresh impetus by bringing in the new CB Unicorn 160, a benchmark in performance motorcycles.

In view of above, it won’t be inappropriate to mention that Honda will be driving growth in both segments!

your company has performed much better in the 110cc to

125 cc motorcycle segment as compared to the less than 110cc segment. is this an indication of the indian motorcycle market getting to grow beyond the commuter mass segment? According to SIAM, 49pc of the sales are still contributed by 110cc segment motorcycle. However, the mid-segment is starting to see traction after a long-time, and hence we will be focusing our energies across both the segments.

Can you throw some light on the r&d activities your company undertakes in india and do we

still get a lot of inputs from your global office in Japan? Traditionally, Honda R&D is operating as separate entity across all 2Wheeler, 4Wheeler & power product divisions globally. Undertaking a major paradigm shift, the New Technical Center was the first step taken by Honda towards a new form of global operations which was launched in 2013. Honda’s Technical Center at Manesar combines integrated system of DEBQ (Design, Engineering, BOP/Purchasing and Quality) under one roof to create a globally optimal operating system that advances local development of higher quality product at low cost. It houses the advanced Wind Tunnel facility which simulates real world air flow situation to monitor aerodynamics and its effect on models to develop truly fuel efficient two-wheelers. The facility’s engineering and styling design also incorporates benchmark equipment like chassis dynamo, bench dynamo, layout machines, SEM microscope etc.

how do you perceive india as an export hub? is there a big scope for such an activity?Honda is already the world’s largest two-wheeler company, producing two-wheelers at 33

plants in 22 countries. These are individual subsidiaries which are present and operating in various other countries/ international markets. With India being world’s largest two-wheeler market, the immediate priority for Honda is to meet demand of this huge domestic market. Although all our three factories are running at full capacity, we are still long way from meeting domestic demand. As we increase our capacity, we hope to increase our exports too in future which will be 10% of our total production.

Till the 250cc, your bikes are well accepted in the indian market. But the situation is a bit sad when it comes to super bikes. Why is this so? Super bikes is still a niche segment, and we have a few iconic offerings in this segment as well. This segment will receive a major fillip from Honda with the impending launch the CBR 650F. This bike would be a ‘Make-in-India’ initiative. The number of inquiries we have been receiving about this bike has been phenomenal. Like we have done for all other segments, we are confident that with CBR 650F, Honda will redefine the Super Bike segment as well.

We had also recently marked the 40 years of iconic Honda Goldwing by launching it in India. By this, we will not only open up the skill of our existing manpower but it will also showcase the Honda India’s manufacturing quality to the world. Through the CBR650F, we hope to bring the big-bike riding experience within the reach of a larger enthusiast audience.

Lastly, yours is a company in a hurry, perhaps to prove a point that it is the best. how soon before it becomes the no. 1 player in india?The biggest gratification for Honda comes from customers itself. We are motivated by the trust placed on us by our 20 million plus customers in India. We

have a long term commitment to Indian market and keeping that in purview, we are laying stress on bringing in huge investments here. Apart from INR 1100 crores of investment in Gujarat plant, we recently announced Rs 585 crore investment of our already existing plant in Narsapura near Bangalore. 39% capacity will be increased by 4th plant in Gujarat which is planned to be the “World’s largest only scooter plant” and our current focus is to start the plant on time.

India Pvt. Ltd.“As far as overall brand is

concerned, we have 60% of business coming from scooters and 40% from motorcycles

and most of it is contributed by 125cc and 150cc motorcycles. In motorcycle segment, Honda has been making new records through active sales. CB Shine became

the first 125cc motorcycle in India to sell 30 lakhs units. We recently gave the legacy of Unicorn a fresh impetus by bringing in the new CB Unicorn 160, a benchmark in

performance motorcycles. In view of above, it won’t be inappropriate to mention that Honda will be driving growth in both segments,” he opines.

No stopping the Honda Activa; Wah, Activah, wah!There is no stopping the juggernaut that goes by the name of Honda Activa. This scooter from Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) has set a new record. Honda’s iconic Activa has emerged as the No. 1 selling two-wheeler model in India in 12 months in March’15.

Honda’s Activa domestic sales stood at 207,270 units in March’15 - leading with a clear margin. Activa continues to exponentially gain acceptance as the most preferred choice of 2-wheeler for commuting in India, said a HMSI press note..

Besides, the Activa is the only Automatic scooter (ATSC) to feature among the Top 10 selling 2wheelers of India in FY’14-15. Among the Top 10 selling 2wheelers of India in FY’2014-15, Activa reigns supreme as both the ‘Highest volume Gainer’ adding 5.04 lakh incremental units and ‘Highest percentage gainer’ gaining 30pc sales volumes.

Highlighting the growing trend towards scooters in India, Yadvinder S. Guleria- Senior Vice President, Sales & Marketing, Honda Motorcycle & Scooter

India Pvt. Ltd. said, “This achievement is more significant since Activa (an ATSC) has displaced a motorcycle for numero uno position in Indian 2- wheeler industry. In the journey of becoming India’s No.1 selling 2Wheeler, Activa has broken the glass ceiling as the only ATSC to feature in top 10 selling two-wheelers in India. Today, Activa is not only a market leader but more importantly the growth driver of ATSC segment growing a stellar 30pc and surpasses the ATSC segment growth of 25pc in

FY’2014-15.” What do we say to that? “Wah, Activah, wah!”

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64 I May 2015 May 2015 I 65

Polaris India Pvt Ltd was established as a wholly owned subsidiary of Polaris Industries Inc. (USA). Polaris India Pvt Ltd. launched its flagship products including ATVs, Polaris Ranger RZR, Side x Side Vehicles and Snowmobiles in India in August 2011. At the helm of affairs of the Indian arm is Pankaj Dubey, a person with very practical experience of the Indian automobile industry. It was therefore natural that Polaris continued to have faith in him as they launched their Indian Motorcycle brand in India.

Dubey has already made Polaris ATVs popular among Indians by setting up a strong network

of dealers and also Polaris Experience Zones. The off road riding culture has finally taken off in the country with Polaris vehicles.

In 2014 Polaris got into India their Indian Motorcycles, starting with the Indian Chief range. Late 2014 came the Indian Scout.

Incidentally, the Indian Motorcycle is an iconic brand that gained immense popularity across world geography. In April 2011, Polaris Industries (US) acquired Indian Motorcycle and in July 2013, it unveiled the all-new range of Indian motorcycles.

“The launch of the Indian Scout in the United States has proved to be successful in stirring a new

wave of enthusiasm. The launch just added another feather in our effort to revive the history of Indian Motorcycle. The launched model is designed to possess the heritage of the past, blended with modern technology. We are now giving Indian enthusiasts a chance to own a piece of history in a modern package by booking their own Indian Scout,” said Pankaj Dubey, Managing Director, Polaris India Pvt. Ltd.

“We did have a launch last year and yes, we are cautious and slow. We took a step forward and we wanted to be firmly entrenched. We started with the Gurgaon dealership last year and now we are on the expansion

InTervIew wITh pankaj duBey, MD, Polaris India Pvt. Ltd.

What has been the progress of indian Motorcycle company in the country because you started on a very cautious note with a single dealership?We did have a launch last year and yes, we are cautious and slow. We took a step forward and we wanted to be firmly entrenched. We started with the Gurgaon dealership last year and now we

are on the expansion mode. In the next three or four months you will see more than five dealerships coming into the country in almost all the important towns. And thereafter you shall see a lot of action from Polaris (Indian Motorcycle is part of Polaris Industries of US)

has the company got feelers

from states outside delhi for owning and operating an indian Motorcycle dealership?There are a lot of people who are enthusiastic and are keen to associate with the brand. But we need a right kind of a partner. We are not going overbroad to select our partners. We have identified places and people and are evaluating everything to

ensure that they are able to do justice to our brand once they come on board. The interest from the Indian Motorcycle perspective has been extremely high ever since we launched the Scout. After the Indian Scout was launched, interest levels have gone dramatically high.

indian Motorcycle is part of the

Polaris family and Polaris has been in india with its all terrain vehicles for quite some time. has there been some kind of a rub off on the indian brand because of Polaris presence or even some kind of a synergy between the two brands when it comes to the target audience?I do not see a synergy as such because these are two different set of customers as a whole. Polaris riders are not necessarily motorcycle riders or customers. On the other hand, if we look at the Indian customer, he would love to do off roading at some stage, but perhaps not want to own an ATV. What we see are two distinct businesses. But since Polaris has been present from 2011, we have a very nice network across the country, we have a strong base in India, we have a strong after sales team, etc. Those are plus points which Indian Motorcycle inherited in a way. Besides, the image of Polaris is very high in the eyes of its customers. Most of the people in the motorcycle industry know what Indian is all about.

What about bringing your indian Chief dark horse into india?We shall be shortly launching the Dark Horse in India and thereafter the Roadmaster. We already have the Indian Scout, the Indian Chief Classic, Chief Vintage and the Chieftain in the country. You will get to see the two brands in a couple of months. In future whenever an international model is launched we hope to have it here in India simultaneously.

how do you see the indian luxury motorcycle market evolving, in the sense there are cruisers, adventure bikes, classics, etc. which of these sub segments you think will grow faster?We have done a lot of research in India before we came in and we found that the customers in this segment are more inclined towards cruisers or touring bikes. When they are looking for a common bike, then they go in for some

product from the current options available in the country. But when it comes to cruisers, then there are just a couple of brands and we are definitely one of them. We have products that are outstanding.

do you see this cruiser sub segment growing in india wherein you start manufacturing bikes in the country?I would love to see that day very soon. The good thing is that it is growing. There is a lot of interest in the cruising and touring segment. I foresee that in the next four-five years this segment could see ‘Make in India’ products. I am seeing that kind of potential and Indian Motorcycle will definitely be there.

What is the company doing in terms of events etc to promote the indian Motorcycles?Our cruiser products start at Rs 25.5 lakh and upwards upto Rs 47 lakh. These bikes are super premium and so are the customers. We didn’t go in for owners club etc and besides with one dealership, it was practically not possible to have a big owners

group. But with products coming in like the Indian Scout, there is a mass appeal because the prices for this product start at Rs 11.99lakh. Suddenly people realised that their dream to own an Indian bike was possible with the Indian Scout. That is where the volumes build up and that is where the owner’s groups and weekend rides start happening.

What is the road ahead for indian Motorcycle?We have big plans for Indian Motorcycle in India and we have just started. We have just one dealership and we shall have five more dealerships. By end of this year we should have around eight dealerships. We feel that in another year or two down the line we will cover around 14 to 15 markets in the country. The volume will really pick up from this year onward. We cannot give you a number but in the next four to five years I foresee volumes that will enable to get into manufacturing or CKD operations.

Will you see demand coming from Tier ii cities and towns?Right now it will come from

bigger towns but I think in a year or so you will see us in the big B towns of the country. These will include places like Lucknow, Indore, etc. Currently we have a dealership in Delhi NCR, we shall be opening outlets in Mumbai, Bangalore, Hyderabad Chennai and Ahmedabad. Thereafter we shall open in places like Kochi, Kolkata, etc and then move on to Goa, Pune, Chandigarh and subsequently to all the B towns.

do we see the Victory Motorcycle from Polaris coming into india also?Right now we are building two brands Polaris and Indian Motorcycle. We want to give everything that Indian deserves before we launch another brand. It is very easy to launch any other bike, because they are ready and we just have to make a phone call and the bikes will arrive. But to do justice to any new brand requires a lot of initiatives. Let us first do justice to these two brand (Polaris and Indian Motorcycle) and then Victory is just a call away. It will be some time before we launch Victory in India.

mode. In the next three or four months you will see more than five dealerships coming into the country in almost all the important towns. And thereafter you shall see a lot of action from Polaris,” Dubey revealed.

The summer of 2015 is expected to see the Indian Scout being brought into India in CBU form. Meanwhile, Indian Motorcycle has started on a cautious note in the country by opening a single dealership in Gurgaon, cover the NCR. By early May 2015 it would have moved into Bangalore too where the Indian Roadmaster and the Indian Chief Dark Horse will be unveiled.

indian motorcycle (polaris india)

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india yamaha motor

66 I May 2015 May 2015 I 67

INDIA YAMAHA MOtOrJapanese motorcycle major Yamaha has more than three decades of India presence. It made its initial foray into India in 1985 through the Nandas controlled Escorts group. But its real journey began in August 2001 when Yamaha India became a 100pc subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor in India Yamaha Motor Private Limited (IYM). YMC has established its wholly-owned subsidiary - Yamaha Motor India Sales Pvt. Ltd. (YMIS) in India to independently support IYM in sales and marketing of its products.

YMIS now supports India Yamaha to market and sell its two-wheelers including YZF-R15 Version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), Fazer FI version 2.0 (149 cc), FZ-S FI Version 2.0 (149 cc), FZ (153cc), FZ FI Version 2.0 (149 cc), SZ-S & SZ-RR (153cc), SZ-RR Version 2.0(149 cc), Saluto (125cc), SS125 (123cc), YBR125 (123cc), YBR110 (106cc), Crux

(106cc) and scooters Ray (113cc), Ray Z (113cc) and Alpha (113 cc) and its import portfolio consisting of VMAX (1,679cc), YZF-R1 (998cc) and FZ1 (998cc). These top end motorcycles are imported in Completely Built Unit (CBU) form.

IYM’s manufacturing facilities comprise of 2 modern plants at Surajpur (Uttar Pradesh) and Faridabad (Haryana). The Surajpur plant produces both scooters and motorcycle while the one in Faridabad only produces two-wheeler parts. The Surajpur plant has a total capacity of around 1 million units.

Yamaha has also set up a new plant on the outskirts of Chennai which will be commissioned in 2015. The plant has come up at

MoTorCyCLES



(engine capacity > 75cc but less than or equal to 110cc) models: crux, ybr110

40699 31248 53991 26579

engine capacity > 110cc but less than or equal to 125cc) models: ss 125, enticer, yd 125

14530 12693 7320 7928

engine capacity > 125cc but less than or equal to 150cc) models: FZ, FaZer, sZ, r15

252261 304372 131818 130463

engine capacity >800cc but less than or equal to 1000cc) models: r1, FZ1, v-max

15 0 0 0

SCooTErS



(engine capacity >90cc but less than or equal to 125cc) models: ray alpha

176981 216960 1635 6271

Vallam Vadagal in Kancheepuram district, Tamil Nadu. An investment of 1,500 crore went into building this plant with a capacity to manufacture 4,00,000 units. In Phase II the capacity will be further augmented to 14,00,000 units, taking the total capacity of the company to 18,00,000 units. The new factory will also have a vendor park in its vicinity.

For the fiscal 2014-15, as per SIAM, the company sold around 7,36,784 units of motorcycle and scooters in the domestic market as well as through exports. In the domestic market it sold 348583 units of motorcycles and exported 164970 units. It sold 216960 units of scooters i the domestic market and exported 6271 units.

Recently, the company launched

another motorcycle for the Indian market by the name of Saluto. The new 125cc Saluto is based on the concept of “Economical & Practical Indian Family Motorcycle”. The new model is the lightest vehicle in the 125cc class and has been developed as a family-use motorcycle with practical performance at an

affordable price. Based on the Blue Core Engine Development ideal, it is powered by a new engine with a more compact combustion chamber than previous 125cc models released by the company. Plans are afoot to launch models in the coming months.

Stated Roy Kurian, Vice

President, Sales & Marketing, Yamaha Motor India Sales, “Our immediate plan is to achieve an annual sales target of almost 9 lakh units in 2015 with 7. 2 lakh units in domestic sales and 1.8 lakh units in export sales. We’ve always been focused on the highly stylish 150 cc deluxe and premium segment motorcycles

and recently we extended our focus on the scooter segment too. With the launch of Alpha scooter last year we drew our focus on the family segment and now with the introduction of Saluto we will continue our focus on family segment and strengthen our presence particularly in the rural parts of the country.”

InTervIew wITh roy kurIan, VP-Sales & Marketing, Yamaha Motor India Sales Pvt. Ltd.

india yamaha is doing 7.36 lakh units in total sales in india with around 5.65 lakh units in domestic sales and around 1.71 lakh units as exports. you have been quoted as saying that your company has set a sales target of 8 lakh units for this year and 1.2 million units by 2017. To achieve these targets, will there be a push on the domestic front or would the company rely equally on the export markets?The year 2014 was a memorable year for us as we witnessed robust growth with the successful launch of our family-oriented scooter – ‘Alpha’ as well as the all new Blue core enabled FZ series and SZ-RR Version 2.0, all of which were instrumental in boosting sales to new levels. Driven by our innovative efforts, ongoing customer-centric activities and exciting product line-ups, the Company strengthened its position by clocking domestic sales of 5.7 lakh units in 2014, compared to 4.6 lakh units in 2013, registering a 23pc growth over the previous year.

Our immediate plan is to achieve an annual sales target of almost 9 lakh units in 2015 with 7. 2 lakh units in domestic sales and 1.8 lakh units in export sales. We’ve always been focused on the highly stylish 150 cc deluxe and premium segment motorcycles and recently we extended our focus on the scooter segment too. With the launch of Alpha scooter last year we drew our focus on the family segment and now with the introduction of Saluto we

will continue our focus on family segment and strengthen our presence particularly in the rural parts of the country.

We are already in the process of expanding our sales & service network across the country to get closer to our customer base. We currently have 1300 customer touch-points and we plan to increase this number to approx 2000 by the end of this year.

With these initiatives, our push

is indeed more focussed on the domestic market. However, the exports market will not take a backseat but will play an important role in achieving the said target by 2017.

among your different products in the different segments, which are the ones that are specifically setting the sales charts ablaze? has indian customers moved out from the commuter segment

of around 100cc or do you think this segment still has a strong demand?Our DNA has molecules of design, innovation and technology. These molecules are twined together to offer our customers an outcome that manifests our obsession and passion.

Our design and style is clearly visible in our revolutionary products like the R15, the FZ Series and our newly launched blue core enabled scooter line-up. Blue core technology is a next generation engine development ideal that significantly enhances riding enjoyment and fuel efficiency. We are confident of growing in these segments with existing and new products and would see the setting of our sales charts ablaze.

If we talk about the commuter segment of around 100cc, it did witness a slight surge at almost 3% but the 125cc segment on the other hand witnessed a 12% increase in 2014.While the demand for the 100cc will sustain, we see few customers slowly shifting their aspirations to a higher cc segment due to the lack of performance with 100cc class bikes. India, however is a very big market with its potential still unexplored and 100 cc would keep contributing strongly in the next couple of years.

Bearing the few aspirational customers in mind we recently launched Saluto - a 125cc family-use motorcycle offering one of the best fuel economy. The new offering has been

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68 I May 2015 May 2015 I 69

designed keeping in mind the needs expressed by 125cc class customers and that included a priority on fuel economy, along with affordable pricing, a want for a 125cc bike because of the lack of performance with 100cc or 110cc class bikes, a desire for a model with a discreet (composed) look befitting a family bike, practicality and designs that are different from existing models, and a priority also on an exterior with the look and feel of quality. In response to these market needs, the new Saluto was developed around the concept of an “Economical & Practical Indian Family Motorcycle”.

The scooter segment too is growing big time in india. do you think there is a scope for a new product in the male

scooter segment? also, in the scooter segment, are the two sub segments of male and female getting to be distinct and mature?The scooter segment indeed holds a lot of potential as it witnessed a 28% growth in 2014 compared to a 6% growth witnessed by the motorcycle segment. Scooters have auto transmission and many females love this convenience. Recently few male customers also have started liking this feature and the comfort they get in heavy traffic conditions. I don’t look at this segment from gender point of view as it’s primarily a unisex product. I would like to broadly divide this segment as family segment (generic product for all in the family) or personal mobility segment.

Scooter as a segment has still

not seen much of action so far. It is still at a very conventional and stereotype mode. Some differentiation though has been witnessed recently but much more action is expected in this segment from manufacturers in coming times as the expectations and aspirations of customers would grow beyond our imagination. There would be a dynamic, growing scope of products for all men and women in the future. Maturity is too distant a word for this segment.

What has been the demand for your high end motorcycles? First things first, we were the first ones to introduce superbikes in India. Our objective was to show case Yamaha power and line up to Indian customers to kick start our top down strategy. Now

we are completely focussed on addressing the mass segment. This would be possible only if we are focussed. We don’t want to get distracted. However we still have sold 35 vehicles last year. We recently introduced the R1 variant and R1M which is poised to get our presence felt.

Will the company be considering a product in the 250cc to 300 cc segment where the likes of royal Enfield rule the roost? do you see a scope there?Market is growing and we are serious about Indian operations. Any segment which is in line with our strategy would be a segment for us to focus on with all our might. I can’t comment on CC, size and shape of the bike but you can expect surprises from Yamaha all throughout.

It was sometime in 2008 when Mahindra & Mahindra Ltd. (M&M) announced that its Board of Directors had approved the acquisition of business assets of Pune-based Kinetic Motor Company Ltd. (KMCL) controlled by Sulajja Firodia Motwani for a sum of Rs 110 crore. A new

company was formed by the name of Mahindra Two Wheelers Ltd. (MTWL) through which Mahindras were to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets. The company has a manufacturing

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(engine capacity >90cc but less than or equal to 125cc) models: vespa

31865 28062 22 10

Piaggio Vehicles Private Limited (PVPL), a 100pc subsidiary of Piaggio & C S.p.A, is known more for its commercial three wheelers. PVPL commenced its India operations in 1999, with the launch of the apé.

This company sells the Vespa scooters in India. Vespa was launched in India in April 2012. The company has set up a plant in Baramati in Pune distric of Maharashtra to manufacture the original, iconic Vespa. Though Vespa is the symbol of Italian creativity, it has not really taken

off in terms of sales in India. In 2014 the company launched the Vespa S in an all new orange and matt black colour. Vespa S joined the earlier launched Vespa LX and VX.

For the year ended March 31, 2015, the company was able to sell 28,062 units the domestic market and export a mere 10 vehicles. Piaggio has also introduced its superbikes, the Aprilia and Moto Guzzi in India. The company has not disclosed the sales figures for these motorcycles.

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(engine capacity less than or equal to 75cc) models: Kine

735 108 0 0

(engine capacity >90cc but less than or equal to 125cc) models: duro/ duro dZ, rodeo, FKyte, gusto)

46445 46241 340 1635

MoTorCyCLES



(engine capacity > 75cc but less than or equal to 110cc) models: pantero, centuro

155532 118995 6525 7866

facility at Pithampur, near Indore in Madhya Pradesh and also has an R&D unit located at Chinchwad, Pune. MTWL has also partnered with Taiwan’s Sanyang Industry Company (SYM), a leading manufacturer of scooters, motorcycles and ATVs, to develop its scooter portfolio.

Today Mahindra Two Wheelers has a range of scooter and motorcycle models. Scooters include the popular Gusto, Rodeo UZO 125, Rodeo RZ, Duro RZ, Flyte and Kine. Motorcycles include Centuro, Centuro Rockstar and the Pantero.

For the year ended March 31, 2015, the company sold 46349 units of scooters in the domestic market and exported 1635 units. In the highly competitive motorcycle segment, it sold 118,995 units and exported 7866 units. Sales have dropped for the company during the year.

Despite the tepid sales, the company seems to be committed to the two wheeler business. It is set to acquire a 51pc equity

stake in Peugeot Motocycles (PMTC), part of the Euro 54 billion PSA Group based in France. PMTC (a.k.a. Peugeot Scooters), a key player in urban mobility in Europe for 116 years, is the oldest motorised two-wheeler manufacturer in the world. Peugeot Scooters offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter – Metropolis, in the European market. The company has maintained that MTWL would support PMTC’s global growth plan and the brand building effort that enriches the “Frenchness” of the Peugeot brand.

In the global arena, Mahindra has only strengthened its position in the two-wheeler segment. Mahindra Racing competes at the highest level of global motorcycle racing in the Moto3 category of MotoGP, while Mahindra GenZe recently revealed its electric two wheelers in the US market that offer sustainable urban transport

solutions to a new generation of US consumers.

Mahindra Racing became the first Indian motorcycle constructor to participate in the FIM MotoGP

World Motorcycle Racing Championship series in 2011 and the Italian National Motorcycle Racing Championship (CIV) in 2012.

In 2015, Mahindra is competing in its third year in the Moto3 class of MotoGP with its own 4-stroke, 250cc motorcycle: the Mahindra MGP3O, developed in

its development centre at Varese in Italy. It’s international success and drive will surely have a positive rub off on the company’s Indian business of two-wheelers.

mahindra two wheelers ltd. piaggio vehicles

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70 I May 2015 May 2015 I 71

Royal Enfield, mostly referred to as the manufacturer of Bullet motorcycles, is now an entirely new entity, emboldened by a sudden surge in the demand for its motorcycles in India as well as abroad. Whether it is the coming in of heavy bike makers like Harley-Davidson that triggered the appetite among Indian men to buy this macho bike, one really does not know. The fact is that the Royal Enfield management (part of Eicher Motors) is pleased as punch. In 2013, the company produced just over 1,70,000 motorcycles and in 2014 it hit the 3,00,000 mark. According to SIAM, the company has sold 3,53,547 units (domestic sales plus exports) in fiscal 2014-15. Domestic sales accounted for 324058 units and exports accounted for 29,489.

The company continues to ramp up capacity at its current facilities in Thiruvottiyur and Oragadam in Tamil Nadu. The company had acquired 50 acres of land in Vallam Vadagal, near Chennai to set up its third manufacturing facility. This plot is located within 10 km of the company’s Oragadam facility and according to Siddhartha Lal, Eicher Motors MD and CEO, the company would commence capacity creation at the third plant “as and when we have a sight of demand that is beyond the combined capacity of our existing two facilities. Our plan is to reach a capacity of 4,50,000 units in 2015 and over 6,00,000 in 2016 from

current manufacturing facilities in Thiruvottiyur and Oragadam.” Royal Enfield’s current capacity from both plants (Thiruvottiyur and Oragadam) will be three lakh units for 2015. Eventually, the two plants put together will be able to manufacture six lakh units. The Oragadam facility has a total capacity of five lakh motorcycles a year. The company invested Rs. 150 crore in the first phase, when it was inaugurated in 2013.

In addition to capacity expansion, the company is also investing in upgrading its capabilities in product development with two new technology centres on the anvil. The larger one will be at a new 4.5 acre property that the company has acquired on Old Mahabalipuram Road in Chennai, and will be operational by Q2 2016. A smaller satellite centre is being set up in UK, and will be operational by the end of 2015. These new centres will be responsible for creating a robust and beautiful range of new motorcycles from the two new platforms that the company is currently developing, informed Lal.

The company has also commenced its strategic foray into international markets where it had been selling motorcycles for decades, “but with considerably low support from our side”, explained Lal. “Markets such as USA, UK and Europe are highly influential, and success in

these markets is crucial for us to gain currency and credibility as we work towards achieving global leadership in the midsized segment. In Latin America and South East Asia, motorcycles, like in India, are popular as the favourite means of daily commute. The size of these markets is much larger than in the developed countries, and similar to India in the enormous potential to upgrade to mid-sized motorcycles. Royal Enfield with its evocative and engaging products is very well placed to catalyse the shift to mid-size motorcycles in such markets. The Continental GT is particularly paving the way for us in these markets. However, these are early days for our international thrust, and we are now in the process of learning what it would take to be successful in different markets. Our first step is to create a strong distribution and brand salience – which is under way in a lot of markets currently; with that we will

set the ground for the introduction of our new motorcycles in the coming years – which have been specifically designed to have global appeal,” Lal stated in his annual report for FY 2014.

Lal has also brought in fresh and experienced blood into his company. Some of the key hires included Rudratej ‘Rudy’ Singh who has joined as President, Royal Enfield. Also, after leading Harley Davidson’s geographic expansion across emerging markets, industry veteran Rod Copes joined the Royal Enfield team to drive the company’s growth in North America. The company also has on board one of the most prolific industrial designers for motorcycles, Pierre Terblanche, who has created some extraordinary motorcycles as the head of design for Ducati for over a decade. He brings this experience to our industrial design team in mentoring our future design directions, points out Lal.

Suzuki Motorcycle India Pvt Ltd (SMIPL), a subsidiary of Suzuki Motor Corporation, was set up after Suzuki’s re-entry into the Indian two-wheeler market after it severed ties with partner TVS in 2000-01. Suzuki was then the technology provider in the erstwhile joint venture company TVS Suzuki. In 2004, SMIPL was set up and it started producing two wheelers from 2006 at Gurgaon plant in Haryana state.

SMIPL manufacturing plant in Gurgaon (Haryana) has an annual production capacity of 5,40,000 units. The company has 37 acres of land, out of which at present the plant is constructed in approximately 10 acres of land. The remaining area is left for the land development and future expansion, says the company.

The company currently makes both scooters and motorcycles at the India plant and also imports

super bikes in the country from Japan. Scooters sold in India include Lets, Access 125, Access 125 (SE) and Swish 125. Motorcycles include, the recently launched Gixxer SF, the Gixxer, Hayate, GS 150R and Slingshot Plus. Top end bikes sold in the country include the GSX-S1000ABS, GSX-R1000ABS, V-Strom, Hayabusa, Hayabusa Z, Bandit 1250 SA, Intruder M 1800R, Intruder M 1800R (B.O.S.S.) and Intruder M800.

For the financial year 2014-15, according to SIAM data, the company sold a total of 3,73,219 units of motorcycles and scooters of which 3,40,483 were sold in the domestic market and 32,736 were exported. Scooters contributed majorly to the total sales. The scooter sales in the domestic market accounted for 2,75,190 units while exports for the year stood at 5712 units.

Atul Gupta, Executive Vice President ( Sales & Marketing), Suzuki Motorcycle India Pvt noted that “We increased our sales by 2pc in 2014-15 compared to 2013-14 cumulatively”.

In 2015, the company launched two new products, the Swish 125 scooter and the Suzuki Gixxer SF motorcycle. It discontinued the

Inazuma the price of which the company cut by Rs 1 lakh. “It started doing well in numbers but at that price it was not sustainable,” Gupta clarified. As for the Gixxer, Gupta noted that “We have won customer hearts with the Gixxer. We are confident that the Gixxer SF too will thrill young buyers across India and

further strengthen our market position.” Healthy Gixxer sales have come as a pleasant surprise for the company. “We had belief in the product and good it came true,” he said when asked about Gixxer’s growing popularity. One being asked whether he was satisfied with its sales of the Suzuki super bikes, he stated, “We will keep super bikes as our brand recall and it will always prove Suzuki way of life in technology”.

MoTorCyCLES



(engine capacity >250 but less than or equal to 350cc) models: bullet 350 twinsparK, bullet electra, classic 350, thunderbird 350

180846 289825 1387 1817

(engine capacity >350 but less than or equal to 500cc) models: classic 500, bullet 500, thunderbird 500,

20960 31431 11897 26043

(engine capacity >500 but less than or equal to 800cc) models: continental gt

944 2799 1194 1629

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engine capacity > 110cc but less than or equal to 125cc) models: hayate, slingshot

55321 26866 4555 14983

(engine capacity > 125cc but less than or equal to 150cc) models: gs150r

3969 3099 4838 7314

(engine capacity 150cc but less than or equal to 200cc) models: gixxer

0 35067 0 4726

(engine capacity 200 but less than or equal to 250cc) models: inaZuma (this model has now been withdrawn From the indian marKet)

78 154 0 1

(engine capacity >800cc but less than or equal to 1000cc) models: vZ 800, gsx r1000, v strom

15 14 0 0

(engine capacity >1000cc but less than or equal to 1600cc) models: hayabusa, bandit

97 93 0 0

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(engine capacity >90cc but less than or equal to 125cc) models: access, swish, lets

296804 275190 699 5712

royal enField (eicher motors)ltd. suZuKi motorcycle india pvt ltd

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72 I May 2015 May 2015 I 73

Triumph Motorcycles India, a subsidiary of UK based Triumph Motorcycles has every reason to be excited about its debut in India. For a superbike manufacturer, selling 1326 units in fiscal 2014-15 has come as a pleasant surprise and the company is gearing up to bring in more models into India in Completely Knocked Down (CKD) form. The company launched its products in November 2013 but went about retailing its bikes in January 2014. The bikes are assembled at a plant in Manesar in Haryana. The company has plans to expand the assembling operations as it has bought one more plot of land adjacent to the Manesar plot.

Triumph Motorcycles India products sold in the country include the Tiger XCx, Tiger XRx, Tiger Explorer XC, Bonneville T100, Bonneville, Thruxton, Rocket III Roadster, Thunderbird LT, Thunderbird Storm, Speed Triple ABS, Street Triple ABS, Daytona 675 ABS and Daytona 675R.

But not many are aware, reports had suggested in the year 2012 that Triumph had plans to set up a production unit near Bangalore. Reports indicated that the company had signed a memorandum of understanding with the Karnataka state government and had indicated to the government that they would invest in two phases in their plant.

They were to manufacture bikes below the 500cc range.

Those plans seem to be shelved for ever now. According to VImal Sumbly, Managing Director of Triumph Motorcycles India, “We have set our priority to be in the premium and luxury segment of the market....For that we have invested in Manesar a lot. Being a private limited company, we do not share the investments...We are more focussed on building up the premium and luxury motorcycle segment. Karnataka was just a part of the investment. It was not huge. As much as 95 pc of the investments we have done in India so far has been in Manesar. The Karnataka investment is

not on priority. It was a bit of an investment. It was not large. Our focus from day one has been to be in the premium segment.”

Commenting on whether Manesar could one day become a manufacturing outlet for the company, he said, “It is too early to comment. But then Triumph has five flexible plants around the globe. We can ship in and ship out any time. This is a very good thing. The closest plant is Thailand. Our endeavour is to bring more bikes in the CKD form and use the advantage it offers for the customers. If CKD gets him the advantage, then we do CKD. If Free Trade Agreement brings that, we do that.”

MoTorCyCLES



(engine capacity >500 but less than or equal to 800cc) models: daytona 675 abs, daytona 675r, street triple abs

58 481 0 0

(engine capacity >800 but less than or equal to 1000cc) models: thruxton, bonneville, bonneville t100

173 534 0 0

(engine capacity >1000cc but less than or equal to 1600cc) models: street triple abs

17 86 0 0

(engine capacity >1600cc) models: thunderbird lt, thunderbird storm, rocKet iii roadster

23 225 0 0

InTervIew wITh vImal sumBly, MD, triumph Motorcycles IndiaTriumph made a big bang entry into india with around 10 models. how has the progress been for your company? according to SiaM data you sold around 1326 models last fiscal. is that on target and has it met your expectations?As of now we are more than satisfied with what we have done. We launched our products in November 2013 but we went about retailing our bikes by mod-January 2014. It’s been really great in terms of growth in India. We had a three-pronged strategy for India. One, was to get a product into India at the right price point. Two, was to get the network and reach so that a customer can access the bike in the main town itself. Third, was to do a great after sales service. This was something we found missing in India. I am proud to say that we are the only company in India which has launched 12 products together on the same day. This clearly shows the commitment Triumph Motorcycle has for the Indian market. We have 10 dealerships in the country and the 11th is coming up in Indore and will be operational by mid May 2015. We have a network coming up in Jaipur soon.

you have a plant in Manesar to assemble Triumph motorcycles. i presume the bikes are coming in CKd form, so how many different models are being assembled currently in the country? Between CKD and CBU there is a huge advantage that you get to pass on to the consumer when you come through the CKD route. Our strategy has always been to bring products at the right price point. When we started operations in India we only had only 11 brands and we have only six of them through CKD and the balance through CBU. Today we have almost 14 brands and out of these 8 are CKDs and the remaining CBU. We shall be bringing more

models through CKD route. For CKDs the import duty ranges from 10pc to 30pc. In the case of CBU, duties including cess cross 100pc. Our Manesar plant is today capable of doing a lot of CKDs. We assemble a lot of bikes in Manesar. We have fully trained Indian technicians working there. We have a flexible manufacturing system. We can produce as many as we want. When we started off, we had almost three to six months of waiting. We have brought that time to two and a half months to three months.

Triumph has five manufacturing facilities across the globe. We have two plants in Thailand. When you bring products into India you need to produce products of world quality. Each is an investment in terms of production line, the number of parts imported etc. First you try to put together a product with the maximum volume. Last year we had Tiger which we brought into India through the CBU route. Now it is CKD. Our objective is to maximise as many products through CKDs. Now with

the FTA being open between India and Thailand, we need to look into that also.

Within the superbike motorcycle segment, is price a consideration? i mean, does a more affordable model become a runaway hit just because it is priced much lower than the others? how do purchase decisions vary in this segment?If you look at the Indian industry which we call the premium industry, which I define at starting from 500 cc and 5 lakh plus, I do not think there is something price sensitive, rather Indians are value conscious. We simply got labelled as price conscious people. If there is a particular value that you get at a certain price, then you go for it. Look at gold, people think it offers value because the price of gold has remained more or less stable for the last three or four years. Consumers look for value for money. Triumph has been successful because we brought in technology, we also got in the ease to buy a bike through different

finance schemes. We also offer road side assistance. If you were to have a breakdown, the bike can be picked using the roadside assistance. We have a full PCA—Parts, clothing and accessories in Manesar. For any demand arising out of any part of the country, we are able to cater to the part at a far shorter span of time. A lot of manufacturers import bikes in CBU and their hub is outside India and when the customer needs a part, then there is a transit time of minimum six to eight weeks. In our case its less than half that time.

does easy finance also play a role in purchase of superbikes? What’s been your experience on this front? do your buyers take a loan for buying your products, as is the case with several other prominent brands in india?We have tied up in the organised finance area with HDFC Bank which does 35 pc of our finance. Apart from that we have nationalised banks and other banks like ICICI bank and Yes Bank. Overall there would be financing to the tune of 50-55pc. I am not counting nationalised banks here, personal loans like a father giving his son, or a company giving a person, etc. For normal motorcycles, the duration of loans last two to three years, here in our case it ranges from six months to two years.

For dealerships, what kind of a strategy have you adopted for india. only tier one city or is it also tier ii locations? What about tapping the neighbouring countries?We feel that Nepal being so close to India, we can cater to them from India through CKD route. In terms of India, we had taken a strategic decision from Day1 to be at the right places at the right time. What I mean by that is typically when a bike company comes in, they put a shop in Mumbai and Delhi and then try the market and see

triumph motorcycles india

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Tiger XRx. Picture courtesy: Triumph


74 I May 2015 May 2015 I 75

whether it is working there or not. If it works well then he expands, if not, he stays there. We put 10 dealerships simultaneously in India. We started from Bangalore, went to Hyderabad, from there we went to Mumbai, then Ahmedabad, Kochi, Chennai and Pune. Delhi was one of our last stores. We also did Chandigarh and Kolkata. Today we are present in all zones.

Being a Brit company we do everything systematically. We did a lot of research, a lot of analysis. We knew where the market is. I personally have been in the auto space for more almost two decades. We identified markets which had a potential and where people were looking for a bike like ours. Just to give you an example, Kochi has absolutely surprised us. I typically call it the Punjab of South. They want big cars and bikes, they can afford them and the entire Kerala state is so beautiful and what better way to explore the state than to do it on a bike! Triumph is a way of life.

are your riders also bonding (forming groups and going for rides together etc) after buying your motorcycles?Yes, we have ten groups in India. We call it the Rider Association of Triumph and is codenamed the RAT globally. We have BRATs in Bangalore, we have H RATs in Hyderabad, we have similar associations in Delhi and Kolkata too. In every state one group is being formed and they ride out together. Brotherhood and community building are very important. This way you can also tell us how our products can deliver in terms of riding safely. We lay a lot of emphasis on these rides. The basic ethos of the brand Triumph is ‘For The Ride’. That is our tag line. We make bikes for the rider. Also one must remember, we do not just sell bikes, we sell clothing, accessories, etc

your company invested in some land near Bangalore to set up a manufacturing plant. is that project still on?

It is a matter of priority. We have set our priority to be in the premium and luxury segment of the market. That is our strategy too. For that we have invested in Manesar a lot. Being a private limited company, we do not share the investments. We had one plot in Manesar and now we have added another. I am there to serve anyone who wants the best of technology, best of style, best of reliability, best of ride and best of experience. In that space we want to operate and we do not want to go down. Our investments in Manesar will increase. We have done a lot of investments, like I told you. Our priority is to invest more and more in Manesar. We are more focussed on building up the premium and luxury motorcycle segment. Karnataka was just a part of the investment. It was not huge. As much as 95 pc of the investments we have done in India so far has been in Manesar. The Karnataka investment is not on priority. It was a bit of an investment. It was not large. Our

focus from day one has been to be in the premium segment.

If you were to divide the industry into two parts: 500cc and Rs 5 lakh plus and 500cc and Rs 5 lakh below, we have our brand in the plus segment. There are very few brands that compete here. We have a 33pc market share. We want to occupy that space. An Indian is no more just and Indian, he is a global Indian. We are there to offer him right power, good style, good reliability and good ride. We are offering the global best product.

Will Manesar become a manufacturing hub?It is too early to comment. But then Triumph has five flexible plants around the globe. We can ship in and ship out any time. This is a very good thing. The closest plant is Thailand. Our endeavour is to bring more bikes in the CKD form and use the advantage it offers for the customers. If CKD gets him the advantage, then we do CKD. If Free Trade Agreement brings that, we do that.

The US $ 6.5 billion plus TVS Group based in Chennai in the southern state of Tamil Nadu was founded by TV Sundaram Iyengar in 1911. TVS Motor Company headed by Venu Srinivasan, with revenues of around Rs 10,098 crore is the flagship company of the group. The TVS Group is also India’s leading supplier of automotive components. TVS Motor Company has international presence in more than 50 countries in Asia, Africa and Latin America.

During the financial year 2014-15, the company noted that it took forward the legacy of the Scooty brand with the introduction of TVS Scooty Zest 110, targeted at the new age Indian woman. The company also strengthened its presence in the motorcycle segment with the introduction of

TVS StaR City+. A limited edition TVS Jupiter and an upgraded TVS Wego were also launched during the year.

During the year ended March 2015, the overall two-wheeler sales of TVS Motor Company, including exports grew from 19.93 lakh units registered in the year 2013-14 to 24.09 lakh units in the year 2014-15. Motorcycle sales during the fiscal year increased from 7.86 lakh units in the year ended March 2014 to 9.51 lakh units in the year ended March 2015. Scooters sales increased from 4.74 lakh units in the year ended March 2014 to 7.00 lakh units in the year ended March 2015. Three wheeler sales of the company increased significantly from 0.80 lakh units in the previous year to 1.08 lakh units in the year ended March 2015. Total exports

of the company increased from 3.09 lakh units recorded in March 2014 to 4.13 lakh units in the year ended March 2015.

“Our strong focus on a deeper consumer understanding and quality in the past few years has resulted in the roll out of superior products such as TVS Star City+, TVS Jupiter, TVS Phoenix and TVS Scooty Zest 110 which have been very well received by our customers. Existing products too have fared well,” said a spokesperson of the company.

Makes around 2.4 million

two wheelers per annum. The company has four manufacturing plants, three located in India (Hosur, Tamil Nadu and Mysore, Karnataka and Nalagarh, Himachal Pradesh) and one in Indonesia (Karawang). Around April 2013,

the company entered into a joint technical and manufacturing cooperation with BMW Motorrad to make under TVS as well as BMW badges under-500cc engine capacity motorcycles. TVS makes bikes in the sub 250cc segment while BMW makes bikes in the 600cc to 1600 cc segment. BMW Motorrad has around 19 premium motorcycle and scooter models. “As regards the BMW technical cooperation agreement, the project is progressing as per plan,” said the company spokesperson. TVS is apparently investing around Euros 20 million (approx Rs 132 crore) in its BMW Motorrad venture. TVS Motor Company currently makes different models of motorcycles, scooters and mopeds. In fact it is the only moped manufacturer in the country. Scooters include some popular products like Jupiter, Wego and the Scooty range. Motorcycles include the Apache series, Phoenix, Victor, StaRcity+ etc.

The company exports its Star range, Max range, Victor range, Apache RTR 160, Apach RTR

180 and Jive to African markets. The StaR HLX 125 has now been introduced in Tanzania.

For the year ended March 31, 2015, TVS Motor Company subsidiary PT TVS Motor Company Indonesia registered total sales of 23,348 units compared to 19,191 units in the previous financial year.

The company recently stated that it will introduce two new motorcycles this year (fiscal 2015-16), including TVS Victor and a high powered premium bike (in all probability the TVS-BMW motorcycle). In addition to this, the company has also planned upgrades of existing products to further strengthen its portfolio. With its customer centric engineering approach, consistent focus on quality and a superior product line, TVS Motor Company is looking to consolidate its position and performance in the ongoing fiscal, a company statement read.

All eyes are on the new product from the TVS-BMW collaboration to be launched in 2015-16 fiscal. The under-500 cc motorcycle is expected to add a new element of

thrill in a segment where there are limited models and players.

When the BMW-TVS tie up was announced early 2013, it was meant to develop and produce motorcycles in the segment below 500 cubic centimetres. The cooperation agreement involved the two companies offering their own vehicle derivatives, which was to be sold through their own distribution channels in India and across the globe.

Though BMW is a well respected name in the Indian automobile industry, BMW Motorrad has an extremely limited presence in the Indian two wheeler market. But India’s popular Bollywood industry saw a bit of BMW Motorrad in their life when the German company became and exclusive motorcycle partner of action thriller Dhoom3 - Back in Action starring Amir Khan. The movie contains spectacular stunt scenes with the BMW S 1000 RR and BMW K 1300 R.

Now it is to be seen, how the BMW Motorrad engineered bikes with TVS Motor Company fares in the real world!

MoTorCyCLES



(engine capacity > 75cc but less than or equal to 110cc) models: max, victor gx, jive, max 4r, star city)

339325 428613 122307 156940

engine capacity > 110cc but less than or equal to 125cc) models: victor glx, Flame, star city + 125

88299 37420 39149 58045

engine capacity > 150cc but less than or equal to 200cc) models: apache

145108 201591 59291 77950

SCooTErS



(engine capacity less than or equal to 75cc) models: teenZ, pep

53 0 0 0

(engine capacity >75cc but less than or equal to 90cc) models: pep+. streaK, Zest

197763 197385 6770 6887

(engine capacity >90cc but less than or equal to 125cc) models: wego, jupiter

259159 487184 11923 15570

2015 tVS Phoenix 125 launched for 51,990

TVS Motor Company has launched the 2015 edition TVS Phoenix 125. The 2015 edition TVS Phoenix 125 is priced at Rs. 51,990 (ex-Delhi) for the drum version and Rs. 55,899 (ex-Delhi) for the disc brake version. Powering the 2015 edition TVS Phoenix 125 is a further refined 125cc EcoThrust Engine which delivers 11 bhp of power and a fuel economy of 67 kmpl. With a flat torque curve and effective power delivery, the 2015 TVS Phoenix 125 comes with first-in-class Monotube Inverted Gas (MIG) filled canister shocks with Series Spring.

TVS Jupiter

tvs motor company

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76 I May 2015 May 2015 I 77

UM Motorcycles is an American motorcycle manufacturing company and has its presence over 20 countries. UM Motorcycle India showcased its cruiser range of motorcycles at the 2014 Auto Expo in Greater Noida. The company has announced its strategic joint venture with Lohia Auto. Their initial plan was to launch a 400cc cruiser by second quarter of 2015 and was looking to appoint 75 dealers across 50

cities by July 2015.The agreement between UM

and Lohia envisages the creation of a joint venture company with a 50-50 partnership between the two companies. The joint venture company will market a full new range of motorcycles designed especially for the Indian markets. The manufacturing facility will be located in Kashipur, Uttrakhand utilising the current Lohia Auto facility with a capacity to produce

InTervIew wITh rajeev mIshra, Director, UM Motorcyclesis the launch of the 400cc cruiser on schedule and what about dealerships, are they in place?We will launch 300 to 500 cc motorcycle and which one would be launched first is yet to be determined as we are doing a market survey to freeze same. We are looking at hitting the road with a network of 50 dealerships across the nation. The NCR region may have four dealerships.

There are already very renowned motorcycle brands in india, both indian and global. What will the USP be for UM to in the market? Would it be the price point, quality or/and performance?We are a global company and selling in over 30 countries competing with same global and Indian brands. By pushing

the boundaries innovation and by providing exhilarating design we will give most innovative products with latest technology at affordable. There is enough space for a new player like us as consumers wants choice and something different than what they already have.

Since the bikes will be made at the Lohia plant in Kashipur, what is the investment that is being done there to set things up? What will be the initial installed production capacity for the bikes? Will the bikes be brought in CKd form or will it have some of localisation?UM Motorcycles will be assembled at Lohia Auto’s plant in Kashipur, Uttarakhand. The plant has an installed production capacity of 100,000 motorcycles per annum.

Initially, the more critical parts of the motorcycles will come from UM Motorcycles USA. The India unit will also be an export base for UM Motorcycles in AMEA region. UM has signed a strategic joint venture with Lohia and the initial investment in the joint venture is of 250 Cr ( 125 crore each) and then increase it to 500 crore by next year.

how many bikes do you hope to produce and sell in the first year and subsequently? has the company set any sales target?We are looking to be substantial player and targeting 5pc market share in the range of 300cc to 500cc and to reach 15pc in next three years. We hope to launch our bikes around September 2015, with a new bike to subsequently enter the market every 6 months.

We hope to bring a second round of models to India around the Indian Auto Expo 2016, priced in the 1.20 lakh to 1.50 lakh (on road) range.

1,00,000 units per year. The expected start of production was slated to be around the second quarter of 2015.

The overall investment in the joint venture company over a definitive period was expected to be approximately 120 crore.

Bosch strengthens presence in motorcycle marketsBosch intends to reposition itself in the rapidly expanding global motorcycle market. The technology and services company is about to pool its motorcycle activities from the areas of riding safety systems, powertrain technology, and display instruments into one business unit, the newly formed “Two-Wheeler and Powersports.”

The objective is to address the individual requirements of motorcycle manufacturers worldwide even more effectively. What’s more, Bosch is looking to expand its product portfolio and strengthen its expertise in two-wheeler system solutions. “Bosch technology for more efficiency and safety should be part of any car, and in the future, the same will

go for motorcycles,” says Dr. Dirk Hoheisel, member of the board of management at Robert Bosch GmbH, adding that “We are aiming to become a leading supplier in the motorcycle market, too.”

Two-Wheeler and Powersports is part of the Bosch Mobility Solutions business sector. With its headquarters in Yokohama, Japan – the very heart of the

international motorcycle industry – and branches in the United States, Europe, India, and China, Bosch has a global reach here. In addition to powered two-wheelers, it is planned that the new business unit will serve the market for special-purpose vehicles such as quads, personal watercraft, and snowmobiles. The unit, which is starting off with

about 40 associates, can draw upon a worldwide network of several thousand colleagues plus the manufacturing capacity of the Mobility Solutions business sector.

MarKET ExPECTEd To doUBLE WiThin FiVE yEarSGlobally, the need for affordable mobility is on the increase, and this is pushing demand for powered two-wheelers. Studies indicate that by 2021, more than 160 million two-wheelers will be produced annually – a third more than today. “The portion of the market relevant for Bosch, which covers driving safety systems, powertrain technology, and displays and infotainment systems, will double over the next five years,” Hoheisel says. Most of that growth will take place in Asia, studies suggest, predicting that in 2021, nearly 90 percent of all powered two-wheelers will be made in China, India and South East Asia. That group consists mainly of small motorcycles with engine displacement up to 250 cubic centimeters, one of the most common modes of transport throughout large parts of Asia.

ThE FUTUrE oF ThE MoTorCyCLE iS SaFE, CLEan, and ConnECTEdBosch components service the entire two-wheeler spectrum: from those in Asia’s lower price segment to powerful machines with over 1,000cc displacement, for which demand is strongest in Europe, Japan, and North America. The new business unit offers safety solutions such as ABS and Motorcycle Stability Control (MSC), a type of ESP for motorcycles. Bosch is the market leader for motorcycle safety systems. The portfolio also includes electronically controlled injection systems, powertrain components for electric two-wheelers and interfaces for connecting motorcycles with smartphones or tablets as well as connected cloud services. “Our systems put even more safety, efficiency, and fun to ride into the motorcycle,” says Geoff Liersch, head of the new Bosch business unit.

With all of these features Bosch provides solutions for the most pressing challenges of the global motorcycle market: many

countries are passing stricter emissions legislation, and more and more two-wheeler riders are involved in fatal accidents. In 2010 alone, more than 285,000 people died in accidents around the world. Yet according to GIDAS, the German accident database, using ABS, can prevent one-quarter of all motorcycle accidents resulting in injuries or fatalities. Additionally MSC can have a positive effect on the outcome of two-thirds of all motorcycle accidents on curves that occur due to rider error.

Modern Bosch technology reduces fuel consumption

Along with safety, the desire for fun, fuel economy, and connectivity are key drivers of Bosch’s motorcycle business. In Asia, many two-wheelers with internal-combustion engines are still fitted with a simple carburetor,

whereas Bosch employs its electronically controlled injection system. By comparison, this system can cut fuel consumption by up to 16 percent, depending on conditions and environment. “This is how we are helping to reduce emissions in countries such as China and India,” Liersch says. At the same time, Bosch is giving two-wheelers digital intelligence with its engine control solutions. In conjunction with a smartphone app, these make it possible to activate the immobilizer, or read out fault memory. Bosch also offers the Bluetooth interface or connectivity control unit needed for these applications.

bosch components for high performance motorcycles

ENGINE MANAGEMENT 1 Electronic control unit motronic2 Carnkshaft speed sensor3 Camshaft speed sensor4 Knock sensor

FUEL SUPPLY AND INJECTION5 Electric fuel pump and pressure regulator6 Fuel injector

AIR MANAGEMENT7 Electronic throttle body8 Temperature sensor9 Canister purge valve10 Manifold air-pressure and temperature sensor

IGNITION11 Spark plug

EXHAUST GAS TREATMENT12 Lambda sensor

SAFETY13 MSC hydraulic unit with attached control unit14 Intertial measurement unit15 Wheel-speed sensor

INFOTAINMENT / CONNECTIVITY16 Connectivity control unit17 Nyon18 Smart phone integration

Renegade Commando

um motorcycles

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78 I May 2015 May 2015 I 79

InTervIew wITh ronan leroy, Head of two Wheeler, Vehicle Dynamics, Continental’s C&S Division

InTervIew wITh karam sahnI, Head, two Wheelers, Elofic Industries

it seems that the two wheeler industry is not far behind the car industry when it comes to modern technology that directly has a bearing on the safety factor. To what extent has the Continental vehicle dynamics offerings been able to penetrate the low cost markets like india, since india is the largest two wheeler market in the world? India tops the list of nations in total number of road deaths and a significant part of these accidents involve motorcycles. According to an accident research of the German automobile club (ADAC), around a fifth of all motorcycle accidents could have been prevented, if the motorbike had been fitted with an anti-lock brake system (ABS). Just like cars, it is also important for motorcycles to remain stable and steerable during a panic brake situation. Already in 2010 we were the first to introduce ABS in an Indian motorcycle - in the TVS Apache.

To improve the active safety of motorcycles, Continental recently expanded its range of electronic brake systems by introducing a one-channel ABS for smaller motorcycles and scooters. Based on its proven ABS technology for passenger cars it was developed especially for cost-sensitive markets such as Asia, where two-wheelers are equipped with only a hydraulic brake on the front

wheel. The one-channel ABS is the newest addition to Continental’s portfolio of motorcycle systems currently in series production: Motorcycle Integral Brake Systems and Motorcycle Anti-Lock Brake Systems (2-Channel ABS).

The response has been very positive from the Indian market with end customers demonstrating interest and awareness in safety systems such as ABS. We believe that a regulation would further drive uptake of safety technologies further in the two wheeler market.

how many manufacturing locations do you have in india?Continental has seven manufacturing locations in India, spread across the three automotive hubs in the country. These plants are for both the automotive and rubber groups. Continental’s Chassis & Safety Division has a hydraulic brakes plant in Manesar, which was inaugurated last year, an automotive plant Bangalore where airbag ECUs are manufactured, amongst other products, an engineering center in Bangalore, Tech Center India, where engineers are working on globally relevant technologies such as Advanced Driver Assistance Systems (ADAS) as well as locally relevant solutions such as the one-channel ABS for the BRIC markets.

among the various vehicle dynamics offerings, is there any product in particular that you can term as revolutionary and has a great scope for a country like india, if not now, perhaps in the future? The immediate opportunity lies in improving the active safety of motorcycles. Continental’s one-channel ABS for smaller motorcycles and scooters is a truly innovative technology.

With a box volume of significantly less than 300 cubic centimeters and weighing roughly 420 grams the motorcycle ABS is very light and can be easily applied to suit the widest range of motorcycle and motor scooter models. ABS control of the front wheel stops it from locking up even during a panic brake by the driver and prevents a fall. A wheel speed sensor constantly monitors the front wheel’s turning speed and from this the algorithms in the control unit calculate whether braking could potentially cause

the front wheel to lock up. If so, the system will reduce the brake pressure, thus preventing loss of directional stability and road holding.

When we talk of Co2 reduction and other such environment friendly terms, how do your products ensure that? Can you briefly explain that?The Powertrain division of Continental is extremely focused on Clean Power. This includes systems and products in the area of Fuel Injection, Exhaust after treatment and Electrification. In the 2 wheeler space, Continental operates through “Synerject” which is a JV with M/s Orbital Corporation. Synerject focuses on Powertrain solutions for 2 and 3-wheelers and recreational vehicles. Through this JV, Continental has develops and supplies innovative engine management systems (EMS) for two wheeler applications.

However, India’s two-wheeler industry is still mainly on carburetor technology. The true driver for the introduction

Elofic industries has been in the business of filters for several decades but it’s only been few years since you got into two-wheeler filters. What took you so long? When I joined the company in 2011 we realised that we were not producing two wheeler filters. This segment was leading the growth in the overall automobile industry in a major way. We wanted to be a very significant player in the market. In 2011 we started making filters for two wheelers for the aftermarket and also tapping OEMs

What’s been the progress in the filter business for two wheelers?If you look at the aftermarket, for the last fiscal we have clocked about 20 lakh units and we have an established network of 150 distributors across the country. We are looking to double this in the next fiscal with a network of 300 distributors. This is a completely different network for the two wheelers and the response has been overwhelming.

The indian two wheelers industry is the largest in the world. That means a huge scope for doing business in this segment, do you agree to that?When we started off our main intention was to be kind of an OEM player. We started approaching all the OEMs in the country and we are happy to receive a positive response. Our products were very well accepted. Our aim is to work closely with the OEM engineering, do a lot of reverse engineering for them, be it through reducing a lot of parts in an assembly, or proposing alternate materials which will eventually bring their cost down.

What are the different kinds of filters that go into a two-wheeler?There is a wide range, the technology over the years has changed. Earlier, we had foam filters in majority of the bikes. That technology is completely obsolete now. We now have paper type filters, plastic moulded filters,

plastic inline filters, so it is the most appropriate time for us to enter the segment.

With so many expensive motorcycles gaining in popularity in the country, is this segment too a great space to be in?Yes, today if you look at the sub 500cc category, we happen to be OEM suppliers to DSK Hyosung, to Suzuki Motorcycles, etc. Maybe it does not get us the volumes but it certainly gives us the prestige. We are in talks to Harley-Davidson, USA. We are also in talks with Triumph, and other players in the segment. In the regular two wheelers segment, we are in talks with Mahindra Two Wheelers, Royal Enfield, India

Yamaha for all their future engines.

are you also exporting these filters to global markets?There is a basket of more than 25 part numbers which we are exporting to OEMs globally. We have not launched two wheeler filters in the aftermarket. We hope to be a global player in this space too.

Elofic Industries is the leading filter manufacturer in the country. The company manufactures filters for all vehicles like passenger cars, tractors, commercial vehicles, two-wheelers etc in its three production units at Faridabad (near New Delhi), Nalagarh (in Himachal Pradesh) and at Hosur (near Bangalore).

of EMS technology is the implementation of stricter emission requirements. The major roadblock is the higher cost because of the introduction of EFI technology. The implementation of Bharat Stage 4 will not enforce the introduction of EFI technology. A change in the mass market is expected at the time of the implementation of Bharat Stage 5 in 2020.

In addition to engine management, Continental contributes to a cleaner environment by being a significant player in the exhaust after treatment area, through Emitec which provides metallic substrates

to almost all 2 wheeler OEM’s in India.

Can you give a background note on some of your plants / r&d centres across the globe and the extent of your manufacturing / r&d capabilities that enable your company to cater to the two wheeler market globally?Continental has been developing and producing anti-lock brake systems for motorcycles for ten years. Thanks to decades of experience in the development of state-of-the-art brake systems for passenger cars and commercial vehicles, our engineers’ passion

for driving motorcycles and excellent knowledge of their special driving dynamism, there is a solution available for motorcycle manufacturers which serves all vehicle classes. For us it is important to be present in the countries where our customers are located. That aspect – in the market for the market – is also reflected by our R&D footprint for electronic brake systems for motorcycles with locations in Europe, India, China, Japan, the USA and Brazil. In the beginning of 2015 we expanded our R&D footprint in India and inaugurated a new Technical Center India

(TCI) in Bangalore to meet the increasing demand for engineering and software development skills to support global R&D projects as well as local customers. Today, our engineers in India are developing one channel ABS solutions for two wheelers alongside highly sophisticated technologies for domains such as Advanced Driver Assistance Systems. Adding value with its understanding of the local market and customers, TCI is fast emerging as a ‘Center of Competence’ for two-wheeler markets and for customised products for the BRIC countries.

File photo of Continental plant.

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largest supplier in 2-wheeler industryAurangabad (Maharashtra)-based Varroc Group headed by Tarang Jain is today the largest supplier in the two-wheeler industry, even though it caters to the entire automobile industry in a big way. The Rs 8000 crore company hopes to reach a turnover of Rs 20,000 crore by 2020 both through the organic as well as the inorganic route. The Group has 32 manufacturing plants of which 23 are in India and the rest spread across various countries including Mexico, China, US and Italy. The company has nine engineering centres worldwide with five of them in India.

Two-wheeler customers include Honda, Hero MotoCorp, Bajaj, Mahindra Two wheelers, Royal Enfield and Suzuki Motorcycles. Varroc has just completed its 25th year of existence in March 2015.

The group business is broadly divided into Varroc Polymers and Varroc Engineering. Varroc Polymers has 11 manufacturing units, all based in India. In the area of electricals and electronics, it has five manufacturing plants. In metallic, it has eight manufacturing units of which six are based in India and two are based in Italy.

The group has three technical collaborators—Mitsuba and Umicore (in electrical) and Scorpion Automotive (the latest technical partner from the UK for vehicle securities). The group has also a joint venture with Scarpa & Colombo for valves. Successful acquisitions include that of Visteon global lighting business, IMES and Triom.

The company had acquired Italian company Triom that is into two wheeler lighting business more for technological purposes. Triom has plants in Turin (Italy), Romania and Vietnam. “Our larger interest when we bought it was the fact that it was a very sound company in terms of two-wheeler lighting and also that it had a plant

in Vietnam,” said Tarag Jain in a recent interview with Motown India.

The polymer business entails manufacturing of air filters, rear view mirrors, seat assembly, painted fairing and seat cowl, HVAC components, rear quarter trims and door trims. The electrical business consists of making digital instrument cluster, regulator rectifier, starter motors, handlebar assemblies, catalytic convertors and flywheel magnetos. The metallic business comprises engine valves, 2 wheeler transmissions, hydraulic components and forged and machined components.

Early 2015, Varroc entered into a technical collaboration with Scoprion Automotive Pvt Ltd of the UK which is a leader in vehicle security. “At the moment it is for the two wheeler space, but they also do four wheelers. We need to go into more advanced products going forward and we need to go in for these kinds of tie ups. They (Scorpion) talked to other players as well but they found us to be the right partner. These kinds of electronics in two wheelers through security systems are something of the future. In India, as you know, two wheelers are the biggest form of mobility.

This is an industry which will not de-grow. That is why Varroc in India is largely present more in the two wheeler space. Globally it is the passenger car segment but in India we are 90 pc in the two wheeler space. There are a lot of prospective customers. There is Bajaj, Honda, Hero MotoCorp, etc. we have approached a couple of people already and they find it very interesting,” informed Jain about the scope of his new business with Scorpion.

Speaking on technology Jain points out that the company’s metallic division, which makes engine and transmission components has a lot of scope

for light weighting (hollow parts for example – the company is already developing hollow engine valves). The Electrical division is developing systems (security, powertrain etc.) by integrating wireless communication, sensing and computing technologies. “The biggest challenge is that this industry is not prepared for the technology wave and those who invest in this area will stand to benefit. Unfortunately very few Indian suppliers have invested in creating technology capabilities in the last two decades. It is still not too late and collaborative R&D can forge the way forward as we are doing,” he noted.

VArrOC GrOUP

tWo-Wheeler Special

80 I May 2015

two-wheeler special report

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