India's bike enthusiasts may get something to cheer about in the next couple of years, as global two-wheeler giants plan to bring their international high capacity bikes to India through the local assembly route.
Legendary Japanese companies including Honda, Yamaha, Suzuki and Kawasaki, and KTM of Austria have either finalised their local assembly plans for India or are in the process of doing so.
Excluding Kawasaki and KTM, the remaining companies do have state-of-the-art manufacturing facilities in India, which are equipped to handle the assembly of knocked-down kits of such bikes.
India's home-grown high power motorcycle maker Bajaj Auto, at its plant in Chakan, Pune, will assemble bikes ranging from 250cc for Japanese collaborator, Kawasaki, to up to 650cc for KTM, Europe's largest manufacturer of power sports bikes. Both bikes are due for launch by the middle of this year.
The primary reason that almost all super bike making companies are looking at local assembly in India is because of the demand for such bikes due to rising income levels, with a similar rise in disposable incomes.
To give an indication, Daimler India sold 437 Mercedes S Class cars in India in 2007 (the company's most expensive car in India at Rs 70 lakh), which was a jump of 84 per cent as compared to the previous year.
A completelyknocked down or a semi-knocked down operation will reduce the end price of the bike by more than 40-50 per cent as the duties levied on such bikes will be 10 per cent of the original cost of the bike. In contrast, a completely-built unit (CBU - a direct import) will cost 60 per cent plus the original cost to the end user.
However, most companies have decided to stay silent about their plans.
When contacted, officials from Honda and Suzuki said, "We may look at the business model, but there is nothing we can say about it at the moment."
A Yamaha official reiterated, "We are focussed to make our scheduled launches for the (Indian) market for the time being before looking at an assembly line for sports bikes here."
A market analyst sad that this strategy may prove that MNC bike makers, which are struggling to break into the market dominated by Hero Honda, Bajaj Auto and TVS Motors, are looking to move up the value chain through the launch of bikes with higher engine capacity.
The same companies can project their prowess and technological superiority in showcasing and marketing such sports bikes here. This will give an adequate exposure to the companies and also help build the brand image, added the analyst.
Meanwhile, Yamaha India has already initiated its plan to sell the YZF-R1 and the MT01 here, although through a CBU route. Both Suzuki and Honda will perhaps launch the Hayabusa and CBR 1000RR, respectively, among other similar offerings this year.
As per Indian automotive regulations, a bike with an engine capacity of less than 800cc will have to be homologated first before allowing it to sell commercially in India.
Thus, most bikes below that range will be tested by the government for road worthiness at ARAI's facility based in Pune, before giving them the green signal.
