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Mahindra buys 100 percent stake in Peugeot Motorcycles

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by Nabanita Singha Roy from https://www.rushlane.com

The brand will launch 7 products in the next two years.

Mahindra Two Wheelers acquired 51% equity stake in Peugeot Motorcycles in 2015 in a bid to establish its presence in the European scooter market. In addition to investing 13 million pounds (Rs 109 crores) in purchasing the shares owned by the French automaker Groupe PSA, the Indian conglomerate invested a further 15 million pounds to empower Peugeot’s product development.

Mahindra Two Wheelers Europe has announced that it will acquire complete ownership of PMTC for an undisclosed amount. Since the initial investment, Peugeot Motorcycles has been showing positive momentum.

The brand’s Kisbee 50 cc moped emerged as the best selling model in its segment in Europe while the flagship Metropolis three-wheeled scooter is enjoying increasing demand in both its home market and in China. The newly launched Peugeot Urban GT maxi-scooter is also doing well in its target markets.

By acquiring 100% stake in the French scooter brand, Mahindra is hoping to drive further growth in Europe and select Asian markets. The company has also announced that Peugeot will introduce seven new products by 2021.

As a part of license arrangement with PMTC’s erstwhile parent company, Mahindra will continue to use the Peugeot branding on scooters. The Peugeot design team will continue to be involved in designing of the two wheelers.

With European countries looking at ways to decongest the city centers, more and more urban commuters are expected to switch to two wheelers. Fresh investment in Peugeot Motorcycles at this point of time is expected to help the brand increase its market share in Europe and expand into new markets.

Having complete control on the operations would help Mahindra Two Wheelers take strategic decisions without any opposition. For example, the company could decide to manufacture select Peugeot branded scooters at its heavily under-utilized Pithampur plant in MP for select markets. This would also lower the cost of manufacturing.

As far as launch plans in India are concerned, MTWL has been evaluating Peugeot’s premium scooter lineup ever since the initial investment was made but no concrete plan has materialized so far. The success of Aprilia in the Indian premium scooter segment should encourage Mahindra to introduce Peugeot products. We will know in the coming months.

UM halts India operations

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The American bike maker has halted production at its Kashipur plant in Uttarakhand and the joint venture with Lohia Auto looks to be strained.

Following reports of several UM motorcycle showrooms shutting down in India, it is learnt that American bike maker United Motors has stopped its operations in India and that the joint venture with Lohia Auto looks to be strained. With this, it joins the list of automakers to exit India which includes General Motors and MAN Truck & Bus AG.

The last UM product launched was the Renegade Commando Classic, priced at Rs 1.89 lakh in September 2017. The long-drawn slowdown in the two-wheeler industry seems to have hit the company hard and production at its Kashipur plant in Uttarakhand seems to have stopped.

Understandably, UM motorcycle dealers of are getting furtive, given that there are no new product launches expected any time soon. Also, it appears that UM is facing a financial crisis globally and reports say that the company has shut its operations in China.

In an interaction with our sister publication, Autocar Professional, Ayush Lohia, CEO, Lohia Auto Industries, explained, “Our JV with UM Motorcycles was of a 50:50 nature. UM Motorcycles is currently not able to invest any money in India and thus the Kashipur plant in Uttarakhand is not manufacturing any of the UM motorcycles.”

UM motorcycles were built with 40 percent localised parts and 60 percent imported bits. While most of the local suppliers are based in North India, the imported parts were being sourced from Indonesia, Thailand and a few other countries. Ayush Lohia confirmed that all the supplies for the last UM motorcycles produced have been paid for and no new parts are to arrive at the plant. However, Lohia says not all hope is lost in the JV and he does not plan to dissolve it any time soon.

Not too long ago, till April 2019, United Motors was retailing around 200 motorcycles a month in India. At present, most of its dealers have pulled down shutters while a few are open just for the servicing process. Acknowledging the Indian dealers’ plight, Lohia said, “We are awaiting clarity from our partner as regards addressing our dealers’ condition. For the time being though, since UM is showing no intention of going ahead with its India operations, I am not able to give a confirmed status of the current scenario of the brand in India.”

It may be noted that after April 2019, reports began coming in of UM discontinuing its operations temporarily in India as none of its products had ABS. Around the same time, official reports from the company stated that new launches could be expected during the festive season.

United Motors’ product portfolio in India includes the Renegade Commando, Renegade Sport S, Renegade Mojave and Renegade Classic – all American-styled cruiser motorcycles powered by the same 300cc liquid-cooled engines. It was speculated that UM was supposed to come out with a 150cc scooter this year, called the ‘Chill 150 ABS’. In the current scenario, that project seems to be in the pigeonhole.

Cleveland motorcycles shutdown India operations

By General Posts

by Satya from https://www.rushlane.com

Cleveland is the 2nd American motorcycle brand, after UM, to leave India in recent time.

Amidst persistent downturn in auto sector and a slowing economy, Cleveland Cyclewerks has discontinued India operations. While an official confirmation is yet to be provided, a report from Express Drives said that the company’s assembly plant in Pune has not been operational for last eight months.

Several factors seem to be responsible for Cleveland Cyclewerks’ exit from Indian market. Primary among them include the relatively high cost of its motorcycles and the company’s inability to comply with new safety norms such as mandatory ABS. The company was also not able to deal with negative perceptions related to its use of Chinese parts.

Unlike other brands in this segment such as Royal Enfield, which have a rich history dating back to several decades, Cleveland Cyclewerks was a relatively unknown brand in the Indian market. The company was launched in 2009 in United States and its business model is quite simple. Most of its motorcycles use chassis from other motorcycle makers and low cost components from Taiwan and China. The choice of engine is usually Honda.

Cleveland Cyclewerks had made its debut in India at 2018 Auto Expo and had subsequently launched two motorcycles, Ace and Misfit. While Ace was positioned as a retro-modern scrambler, Misfit derived inspiration from a cafe racer. Both these bikes were imported in India as CKDs and assembled at the company’s facility in Pune.

Both bikes utilized a 229 cc, air-cooled engine that generated max power of 15.4 hp and max torque of 16 Nm. This was less than even lower capacity motorcycles. Ace and Misfit were launched at a starting price of 2.23 lakh. This is more expensive than Royal Enfield Classic 350, their main rival.

These factors worked against the company and sales of Ace and Misfit never really took off. The company had opened its first dealership in Mumbai and had plans to open 100 more dealerships by 2019. However, with meagre sales, the plans failed to materialize. The report says that employees of the company were asked to resign at short notice.

If you own an Ace or Misfit, it would be difficult to say how you will get your bike serviced. You will probably have to rely on the expertise of your local mechanic or branded garage shops.

Royal Enfield enters South Korea

By General Posts

The iconic British motorcycle manufacturer arrives in Korea with its first flagship store, commencing its full operation, including after sales, spares and service.

Cult motorcycle maker, Royal Enfield on Friday has announced its entry into South Korea, with Vintage Motors (Kiheung International) as its official distributor-partner in the country.

The iconic British motorcycle manufacturer arrives in Korea with its first flagship store, commencing its full operation, including after sales, spares and service, the company said in a statement.

Vimal Sumbly, APAC Business Head, said, “Our focus is to sustain and expand our reach in International markets especially in Asia pacific region. Royal Enfield has seen consistent growth in the APAC region with a 20% year-on-year growth. Korea is an important chapter in the growth story and we are thrilled to commence business here. We fully committed to focus all our energies on becoming part of the fabric of this country’s rich motorcycling culture.”

This strategic announcement is in line with Royal Enfield’s focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc).

Pablo Lee Jr, CEO, Kiheung Motors said, “Royal Enfield motorcycles will offer Korean two wheeler riders an opportunity to upgrade to a robust long-distance, leisure riding culture with its modern-classics machines, that are brilliant for long rides on the highway at the same time perfect to commute in heavy traffic in the city”.

Royal Enfield enters South Korea, with line-up of three of its widely popular models featuring single-cylinder engines currently up to 500 cc: Bullet (500cc), Classic (500c), and Himalayan (410cc).

Triumph recalls 1,000 motorcycles in India for minor upgrades

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Affected model include Headstock Tidy, Street Scrambler, Street Twin, Bonneville T100 and Bonneville T120.

NEW DELHI: British motorcycle manufacturer Triumph Motorcycles Ltd has announced a recall of certain models, affecting around 1,000 motorcycles in India.

Affected model include Headstock Tidy, Street Scrambler, Street Twin, Bonneville T100 and Bonneville T120. Changes and upgrades in indicator, main beam malfunction and a possible loss of engine power caused by the clutch cable contacting the main harness, resulting in damage to the wiring within the main harness will be carried out.

“Any concerned customers are asked in the first instance to contact their local Triumph Dealer as soon as possible, who will be able to carry out all necessary work as required at no cost to the owner,” the company said in a statement.

Harley-Davidson looks to consolidate position in big bike segment in India

By General Posts

One of the India Showrooms of Harley-Davidson

Last year, Harley-Davidson had reported sale of over 3,000 units in the country.

New Delhi: American cult bike manufacturer Harley-Davidson Thursday said it aims to further consolidate its position in the over 1,600-cc segment in India, which it currently dominates with over 90 per cent market share.

Economic Times Article: https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/harley-looks-to-consolidate-position-in-big-bike-segment-in-india/68414005

The company launched its 1200-cc model Forty-Eight Special in India priced at Rs 10.98 lakh (ex-showroom Delhi) here. It currently has four models in its big bike (over 1,600-cc) portfolio in the country.

“We definitely will be consolidating in the big bike segment,” Harley-Davidson India Managing Director Sajeev Rajasekharan told .

Sales in the 1,600-cc plus bike segment in India currently stands at over 600 units annually.

Rajasekharan said last few years have witnessed consistent growth in terms of big bikes; and the company has been able to maintain its leadership position.

“We expect the market to grow from this year as the trends have been positive. More models are there and road infrastructure has been improving. There is more awareness and all these factors will trigger further growth in the market,” he added.

Last year, Harley-Davidson had reported sale of over 3,000 units in the country. The company’s bikes are priced between Rs 5.33 lakh (Street 750) and Rs 50.53 lakh (CVO Limited).

When asked about the time-frame for introducing small capacity bikes in India, Rajasekharan said there is “not much to share on that”.

Last year, Harley-Davidson had announced plans to develop a 200-500 cc motorcycle through a strategic alliance in Asia which will be used to primarily fuel its growth in India.

On introducing its Livewire electric bike, he said, “We would launch it in the US and Europe; and when infrastructure is ready, Harley would look at spreading out to other markets as well.”

He said that there is a lot of emphasis on electric mobility in India and the company is very happy with the positive changes that are happening to get the environment more conducive for launch of such vehicles.

The company on Thursday also introduced an updated version of its touring bike Street Glide Special priced at Rs 30.53 lakh .

Commenting on this new edition, Rajasekharan said the bike now comes with an upgraded 1,868-cc engine and other accessories.

The model is one of the three touring models that Harley-Davidson sells in country right now. Other two have already been updated and launched.

Commenting on company completing ten years in India, Rajasekharan said this “is just the beginning as we remain the cruiser of choice for many riders. With the all-new Forty-Eight Special, the company takes its motorcycle line up in the country to 17 models”.

Over the past ten years one of every two big bikes sold in the country has been a Harley, he added.

Elaborating on company’s plans for the current year, Rajasekharan said Harley would add two more dealerships during the course of the year taking the total count to 33 from current 31 outlets.

“We also plan to add three lifestyle stores taking the count to 10. In the tenth year of operations in India we will have 43 touch points in all,” he added.

Jawa and Jawa Forty Two deliveries to begin fourth week of March

By General Posts

Classic Legends reintroduced Jawa Motorcycles in India on November 15, 2018, with three new models — Jawa, Jawa Forty Two and Jawa Perak.

  • Both Jawa and Jawa Forty Two get the same 293 cc, liquid cooled, single cylinder, DOHC engine.
  • The two models have been designed and developed from scratch.
  • Jawa Perak is powered by a 334 cc, liquid cooled, single cylinder, DOHC engine.

Jawa Motorcycles will begin the deliveries of its two new models — Jawa and Jawa Forty Two — from the fourth week of March. While Jawa is priced at Rs 1.64 lakh (ex-showroom, Delhi), Jawa Forty Two is available for Rs 1.55 lakh (ex-showroom, Delhi).

Mahindra & Mahindra’s subsidiary Classic Legends reintroduced Jawa Motorcycles in India on November 15, 2018, with three new models — Jawa, Jawa Forty Two and Jawa Perak. The online bookings for Jawa and Jawa Forty Two had commenced on the same day and closed on the midnight of December 25, 2018. With regard to Jawa Perak, which is priced at Rs 1.89 lakh (ex-showroom, Delhi), it was announced that the bookings will open at a subsequent date.

Now, Classic Legends’ co-founder Anupam Thareja has said that the deliveries for Jawa and Jawa Forty Two across the country will start from fourth week of March as per the booking queue. By third week of the month, there will also be 100 Jawa Motorcycles showrooms in the country.

The moment of truth is here for #JawaMotorcycles. We were audacious and planned a 100 showrooms nationwide before starting delivery – that’s being done in record time by March 3rd week. Fourth week onwards, we will start delivery across the country as per the booking queue!
– Anupam Thareja (@reach_anupam) March 12, 2019

Both Jawa and Jawa Forty Two get the same 293 cc, liquid cooled, single cylinder, DOHC engine. It churns out 27 bhp and 28 Nm of torque. The motor complies with BS-VI norms. The two models have been designed and developed from scratch keeping in mind the distinctive character, unique sound, styling and riding experience. Jawa and Jawa Forty Two are tuned as retro and modern classics, respectively.

Jawa Perak is powered by a 334 cc, liquid cooled, single cylinder, DOHC engine. The powertrain develops 30 bhp and 31 Nm of torque.

No silver bullet in sight for Enfield hit by sliding volume

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The Eicher Motors stock fell 30 per cent in the past year.

The Bullet, it appears, is just not firing on all cylinders at the moment.

Royal Enfield (RE) sales are rather soft, and state-wise volume statistics furnished by industry body SIAM show that the bike that defines panache for motorcycle enthusiasts in India is riding through a rather rough patch. Eight states that make up three of every five RE bikes sold locally have reported deceleration.

Maharashtra and Karnataka together account for 13 per cent of RE volumes, and these two states have seen a drop in 6-7 quarters of the past nine.

Kerala, the largest market of RE, has witnessed volume drops of 13 per cent and 23 per cent in the September and December quarters, respectively. The September decline is attributed to floods. But declines in the December quarter have put the lens on underlying demand.

Industry volume growth of twowheelers in south India was 9.5 per cent in the first nine months, up from 5.6 per cent in the previous year. However, RE’s sales volume growth in the Southern states has been underwhelming.

The RE management has given production guidance of 8.7-8.8 lakh units for the current fiscal year. However, it is unlikely to be met. Average monthly run-rate of RE in the first 11months of FY19 stood at 69,569 units. To achieve the stated guidance, the company needs to produce 1.04 lakh vehicles in March. This appears to be quite a daunting task given the weak demand cycle.

The Street is factoring in volume growth of 10 per cent for FY20, which could be trimmed due to about 3 per cent growth in FY19. The Eicher Motors stock fell 30 per cent in the past year following constant negative surprises on the volume front. The stock is trading at 21 times FY20 earnings, compared with the long-term average of 30 times.