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Polaris Industries is in talks with Eicher Motors owner of Royal Enfield Motorcycles for two wheelers in India.
Eicher Motors will be the fourth company in recent times to tie up in the two wheeler industry in India. Earlier Bajaj had tied up with KTM, TVS had tied with BMW and Hero had tied up with three different foreign companies.
Polaris Industries had recently said that they intend to launch the Victory and Indian Motorcycle Brands in India. Polaris has been hoping to take on the might of Harley Davidson with its premium Indian Motorcycles and its mid range Victory Motorcycles. Harley Davidson is the fastest growing superbike seller in India. Polaris will hope to upstage the Milwaukee brand. With Triumph also planning to launch in India, the company will plan to enjoy the fruits of reaching earlier.
Eicher and Polaris are already in a JV to develop light passenger vehicles. This is a Rs 250 crore venture. This prior agreement can be built upon with the two-wheeler section being added in the same facility. The JV intends using an old Royal Enfield factory near Jaipur in Rajasthan. Production for these LPVs is set to begin in 2015.
This will give Polaris an opportunity to enter India with a much less investment than what would be required if coming in alone. This will help bringing down the costs with the reduction in duties of CBUs vs CKDs. If Polaris decides to make an India specific motorcycle then it could also have access to Royal Enfields component suppliers.
Harley Davidson is reportedly developing an India specific model, a JV between Victory and Royal Enfield will allow them to take HD head on. But will RE be willing to tie up with a direct competitor like Victory Motorcycles. Only time will tell.
Source: Polaris Industries mulls two-wheeler tie-up with Eicher Motors
Eicher Motors will be the fourth company in recent times to tie up in the two wheeler industry in India. Earlier Bajaj had tied up with KTM, TVS had tied with BMW and Hero had tied up with three different foreign companies.
Polaris Industries had recently said that they intend to launch the Victory and Indian Motorcycle Brands in India. Polaris has been hoping to take on the might of Harley Davidson with its premium Indian Motorcycles and its mid range Victory Motorcycles. Harley Davidson is the fastest growing superbike seller in India. Polaris will hope to upstage the Milwaukee brand. With Triumph also planning to launch in India, the company will plan to enjoy the fruits of reaching earlier.
Eicher and Polaris are already in a JV to develop light passenger vehicles. This is a Rs 250 crore venture. This prior agreement can be built upon with the two-wheeler section being added in the same facility. The JV intends using an old Royal Enfield factory near Jaipur in Rajasthan. Production for these LPVs is set to begin in 2015.
This will give Polaris an opportunity to enter India with a much less investment than what would be required if coming in alone. This will help bringing down the costs with the reduction in duties of CBUs vs CKDs. If Polaris decides to make an India specific motorcycle then it could also have access to Royal Enfields component suppliers.
Harley Davidson is reportedly developing an India specific model, a JV between Victory and Royal Enfield will allow them to take HD head on. But will RE be willing to tie up with a direct competitor like Victory Motorcycles. Only time will tell.
Source: Polaris Industries mulls two-wheeler tie-up with Eicher Motors
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