Harley Davidson LiveWire – Harley’s first-ever electric motorcycle!

Harley breaks the mold and opens its doors to the rest of us with a solid product strategy

– Opened pre-bookings for the electric LiveWire which costs US $ 29,799

– Expect it to cost ~Rs. 40-50 lakh if it comes to India via the CBU route

– Revealed specs of the LiveWire

– LiveWire deliveries to commence in September 2019

– Showcased electric scooter concept for urban mobility

– Showcased electric off-road trail bike concept

An electric naked street fighter with a supercar-like 3.5-second 0-100kmph time is nothing to scoff at regardless of who makes it. It’s far more impressive considering that this crotch rocket wears the Harley-Davidson badge. The motorcycle maker is known for its laid-back cruisers with old-school push-rod V-twins and loud pipes.

As Harley’s target audience of baby boomers shrinks, they’re looking to excite the youth and get young blood on two wheels.

The LiveWire already has a production plan. The scooter and the trials bike are still only concepts. But if their production avatars end up sharing the floor with the LiveWire, that will mean a whole new direction for Harley-Davidson.

While their bikes may have different personalities, they’re all seen as cruisers. There’s no need to get the Iron 883 and the Road Glide as they both pretty much do the same thing. But a scooter, a street naked, and a trail bike are so different that a single owner could have all three in his/her garage and easily justify spending the cash. The scooter can do the grocery runs in style. The LiveWire can take you to office and back through curvy canyon roads. The lightweight trail bike will let you have fun off the road. Judging by the looks of that thing, it appears pretty hardcore and may not even sneeze at a rocky trail.

It’s nothing new and many automakers do it. Ducati, for example, has the stylish Scrambler for weekend breakfast rides, the Monster for commuting, the Multistrada for touring, and the Panigale for the track. The fact that it’s coming from Harley-Davidson makes it noteworthy.

Whether we get to see the two concepts in production form or not will greatly depend on the success of the LiveWire. It’s a big-ticket product for only the early adopters. It’s certainly a good strategy to have a small number of customers to satisfy should something go wrong. A new product with new technology is bound to have teething issues. With a big price tag, it’s going to have a smaller number of paying beta testers and limited success. A positive response from the earliy adopters should help clear the path for the other two concepts, which are not only going to be more refined but also more affordable. Which is how it should be because the mass market is neither prepared nor willing to become a guinea pig.

Harley-Davidson LiveWire Specs

– 0-100kmph in 3.5 seconds

– 177km range per charge

– Adjustable front and rear suspensions from Showa

– Michelin Scorcher tires

– 4.3-inch touchscreen console

– Available in orange, lime green, and black

– 20km per hour charge rate regardless of whether you connect to 110v (level1) or 220v (level 2)

Statewise Two Wheeler Sales – H1 FY19

Thanks to our readers for the overwhelming response on the Statewise Car Sales report. We received multiple requests to share a similar report for two wheelers as well. We are happy to present the same with this post. The format of the reporting is very similar to our previous post and we have tried to add the additional analysis of the top 2 players in the Industry as a bonus.

Around 1,04,96,415 Two Wheelers were sold in the first 6 months of previous financial year (Apr’17-Sep’17) – source. The Industry volumes have grown over 10% and have registered a volume of 1,15,31,359 (over 1 crore fifteen lakh bikes sold in the first 6 months of FY this year !!!). No wonder, India is the world’s largest two wheeler market.

Statewise Two Wheeler Sales Data (FY19 v/s FY18 comparison) –

  • West Zone ranks No.1 in terms of overall sales and is similar to statewise car sales data. Even other Zone ranking are similar to the car sales data (South being No.2; North at Third position & East at last).
  • However East’s overall contribution to India’s Two Wheeler sales is significantly higher (vis-a-vis trend seen in car sales). This clearly signifies the importance of smaller cities in Two Wheeler sales. The dependence on Rural markets is clearly visible and defines the way various OEMs operate.

Ranking of States basis volumes:

  1. The Top 10 states contributes to >70% of Nation’s Two Wheeler Sales!
  2. UP sells more two wheelers than Gujarat+Karnataka combined (PS: Both Gujarat & Karnataka are in Top 5 selling states for Two Wheelers)! There is a saying in Indian Politics that the Party which has clear majority in UP can easily win national elections. The scenario is something similar here as well – The OEM with major Market Share in UP has a tremendous competitive advantage – And this is what is giving Hero Moto Corp the leading edge.
  3. The Zone Wise bifurcation Top 5 states is – West Zone (2 states), South Zone (2 states) & North Zone (1 state).

Hero v/s Honda –

This is the most interesting competition the automobile industry will ever witness. Honda has grown exponentially in the past few years and was expecting to near the gap with Hero Moto Corp this year. However; Hero’s stronghold in North Zone has become a pain area for Honda and not having a strong offering in Entry-Motorcycles is hitting Honda badly.  However do note that Honda has overtaken Hero Moto Corp in 19 out 33 states in comparison here!

  • Hero + Honda enjoy an enviable 66% Market Share in the Largest Two Wheeler Market of the world. The scenario again is somewhat similar to Passenger Cars Market share where Maruti + Hyundai combined contribute ~68% of the Market Share.
  • However; the Market Share difference between Hero & Honda is just 6%. If you study the statewise comparison; the biggest gap and deciding state is Uttar Pradesh where Hero has a clear majority with 55% Market Share and Honda is reeling at just 15% Market Share. Having low market share in the Biggest Two Wheeler selling state of India is pulling down Honda’s aspiration to inch towards the Top Slot.

November 2018 Two Wheeler Sales – Snapshot

A look at YoY Growth of the Two Wheeler OEMs and the Industry –

  • Two Wheeler Industry grew a healthy 7.2% v/s the same period last year.
  • Hero Moto Corp stands at the Pole position and with improving sales of Motorcycles has been widening the gap with Honda Motorcycles. Hero grew just 2.1% YoY and was able to cross 6 Lakh unit sales in Nov’18.
  • TVS & Bajaj have both shown exemplary growth this year. TVS has pepped up its scooter sales and was able to scale up its volumes pretty significantly. Both Jupiter & NTorq have been doing well in 110cc & 125cc segments. While Bajaj with its dynamic pricing of entry level two wheelers have escalated its sales numbers impressively.
  • Royal Enfield volumes are kind of stagnating and have actually de-grew -4.1% YoY. We hope that 650cc Interceptor & Continental will change the scenario for this iconic Two Wheeler maker.

Market Share Graph:

  • The Top 4 Two Wheeler manufacturers capture ~90% Market Share! This speaks volumes about the dominance well-established brands have in India. Even the Top 2 OEMs (Hero+Honda) cater to >60% of Two Wheeler sales in India!

Best Selling Motorcycles of September 2018

  • Top 5 motorcycles were dominated by Hero & Bajaj! The Motorcycle segment still dominates the Indian 2-wheeler scenario – the Top 4 motorcycles sold more than the Top 10 scooters in Sep’18! (The combined sale of Top 4 motorcycles was 6,71,192 units v/s the combined sales of Top 10 scooters of 6,01,878 units).
  • Splendor still sells like a charm! It overtook Activa sales and emerged the No.1 Bestseller in the Two Wheeler category.
  • Bajaj has gone the volumes way and has aggressively priced the entry-level offerings (CT & Platina). Bajaj also had 3 models in the Top 10 list and was only second to Hero (which had 4 models).
  • Surprisingly Royal Enfield sales have slowed down and the Classic 350 was pushed to the 10th spot. Classic 350 sold 44,021 units in Sep’18 (v/s 47,674 units sold in Sep’17).

Best Selling Scooters of September 2018

  • Honda Activa continues its dream run and again dominates the Top Slot in the list of Best Selling scooters. It has also recently crossed the 2 crore sales milestone! Honda Activa took 15 years to cross the 1 crore mark, while the second crore landmark took just three years. Activa has been the highest-selling two-wheeler in India for the past few years, displacing the Hero Splendor.
  • The 2nd best in the segment – Jupiter sells ~2 Lakh units lesser than Activa! However, TVS has been the only OEM who has been able to show some fight to Honda in this segment. Jupiter sold ~90k units and has consistently been the No.2 brand in the segment.
  • Grazia is missing in the list and the competition TVS Ntorq stood 7th with sales of 20,820 units. Ntorq has a better acceptance amongst customers and is slowing gaining popularity.
  • Access & Dio fight hard for the 3rd place and Access emerges as the winner! Access was one of the early adapters of 125cc engine and has a good demand among buyers.
  • Though Hero has 3 offerings in the segment (Maestro, Duet & Pleasure); the combined sales is lesser than Jupiter! The volumes aren’t good enough considering vast dealer network of Hero Moto Corp.

Bajaj Auto introduces ‘5-5-5’ offer ahead of festive season

Provides customers with an opportunity to own select Bajaj Motorcycle with free benefits:

  • 5 years of Free Own Damage Insurance
  • 5 Free Services
  • 5 years of Free Warranty

Bajaj Auto has introduced 5-5-5’ offer commencing from 5th October 2018 where customers get the benefit of five years of free own damage insurance cover, five free services and five years of free warranty on select Bajaj motorcycles across all dealerships in India at no additional cost. This offer from Bajaj Auto gives respite to its customers from the huge hike in insurance costs & fuel prices during the festive season.

One of the key benefits of this offer is five years of free own damage insurance cover for customers buying a Platina, Discover, Pulsar or V range of motorcycles. Customers gain from the other benefits of the offer which includes additional two free services for the CT100, Platina, Discover, V, Pulsar. In addition, customers of any Bajaj motorcycle in this period get a free five-year warranty package. Customers purchasing these bikes from 5th October 2018 would effectively get huge savings of ranging up-to Rs 9,800 on Pulsars, Rs 5,200 on Bajaj V’s, Rs 4,800 on Discover and Rs 4,100 on Platina.

Commenting on the announcement; Mr. Eric Vas, President, Motorcycle Business, Bajaj Auto said; “Motorcycle on-road prices have gone up by at least Rs 6000/- due to the increase in insurance cost. We wanted to cushion this cost for our customers by absorbing the cost of own damage insurance for the first year and extending this benefit by covering him for the next 4 years. Bajaj Auto is the first in the industry to introduce such an offer through the 5-5-5 scheme. This offer makes it even easier to own a Bajaj Motorcycle and provides our customers another reason to celebrate this festive season.”

He further commented, “We are confident that these new customer centric schemes will help boost our sales this festive season.”

Supreme Court has mandated an increase in third-party insurance cover for new bikes and scooters to five years. This coupled with increase in the accident coverage to 15 Lakhs has significantly impacted insurance cost of two- wheelers. However, with the festive season around the corner, Bajaj Auto has offered a huge relief offering convenience to buy comprehensive insurance for 5 years, with no further hassle of renewing the own damage insurance every year.

** Insurance Scheme Applicable Maharashtra, Karnataka, Gujarat, West Bengal & Assam for all Pulsar models. Scheme in other states for select Pulsar Models.