Harley-Davidson holds more brand value in the Indian market as it sold more units of the Street 750 than the lesser price Royal Enfield Continental GT last financial year.
A clear example of brand value winning over pricing, Harley-Davidson sold 3029 units of its most affordable motorcycle the Street 750 in India in the 2014-15 financial year while Royal Enfield sold 2799 units of its flagship offering the Continental GT (CGT) during the same period. The sales report not only shows the impressive brand position that Harley enjoys in the country but also the growing demand of the mid-size motorcycle segment that is the next big market in the Indian performance motorcycle space.
The Harley-Davidson Street 750 is priced at Rs. 4.32 lakhs while the Royal Enfield Continental GT is priced at Rs. 1.91 lakhs (all prices, ex-showroom Delhi) in the country. Despite being almost twice as expensive as the CGT, the Street 750 managed more numbers on the sales chart. While both brands are extremely popular in their own might, Harley is a far more powerful brand globally offering much better technology on its motorcycles which Royal Enfield loses out to by a significant margin.
The sales report also showcases the purchasing habits of urban individuals who will not spend beyond a point over an Indian manufacturer such as Royal Enfield. With the Chennai-based manufacturer planning to enter the mid-size segment with larger capacity motorcycles, the company’s ambition to become number one in the mid-size space does seem optimistic at present. Nonetheless, the Bullet maker is heavily investing in improving brand value while also improving on the engine refinement and reliability.
Overseas though, Royal Enfield will have to compete with a host of offerings including direct rivals like Harley’s Street 500. While earlier reports stated that the Street 500 might not be launched in India and only reserved for exports, Harley might want to reconsider given the popularity of the brand in India. In terms of power, the Street 750 uses a 749cc ‘Revolution X’ engine with 59 Nm of torque paired to a 6-seed transmission while the Continental GT uses a 535cc single-cylinder engine with 29 BHP of power, paired to a 6-speed gearbox.
