Arup and Jared sit down with Dante Bustos, Chief Marketing Officer, Benelli, & Vikas Jhabakh, Director, Mahavir Group, as they detail their plans to revamp the Benelli brand in India.
In October this year, Italian two-wheeler manufacturer Benelli will set out to resume operations and sales in India. After bursting into the Indian market in 2015, and successfully selling over 5,800 units, the company stopped selling its bikes in May this year after ending their partnership with the Pune-based DSK Motowheels. But now the Italian firm is back with a new strategic partner, Adishwar Auto Ride, of the Mahavir Group.
In a chat with Dante Bustos, Chief Marketing Officer, Benelli, and Vikas Jhabakh, Director, Mahavir Group, they revealed that Benelli plans to launch 12 motorcycles by 2019, and also enter the 135 to 200cc class.
How difficult has this transition period been for Benelli? It’s sort of a second coming for the company.
Vikas: The transition took 3 to 4 months, as a result, there was silence in the market and no comments from Benelli. We were busy trying to ensure that the interests of the investors, stakeholders and customers are taken care of. I think the transition is pretty much complete now. We’re moving the assembly plant to Hyderabad, and it should be ready by October. And if all goes well, the supply should start in the same month. We are also happy to say that 90% of our dealers still believe in the brand and are onboard with us. When it comes to spare parts, we have already started supplying them to all our partners. Unfortunately, there’s some backlog, but we hope to clear up everything by the end of this month. All prior commitments, like warranties, will be kept as is. We don’t want our customers to feel the transition at all.
What are your network expansion plans, especially in North India, as Benelli has a somewhat limited presence here?
Vikas: We have a very aggressive network development plan. We feel that one of our weakness is our network, as 18 dealers don’t justify the entire country. And, yes, we are extremely under-represented in the North. Most of our sales come from the South, but if you look at other brands’ national figures, North India covers a very substantial percentage. We are currently talking to potential investors for this region. We are looking to establish 20 touch points across the country by 2019 and another 20 touch points by 2020. This will be a combination of new partners while existing ones will get the opportunity to expand to other cities. So, by 2020, we will have 55 to 60 touch points across the country, which will bring us closer to our customers.
Apart from introducing new models, will you be also retaining your current line-up?
Vikas: Not all bikes will continue. Due to the new emission norms, the TNT 899 and 1130 are discontinued, as they aren’t BS IV compliant. We aren’t bringing back the 600 GT and TNT 25. We have a list of new bikes, new variants and new technology coming in, and we want to bring those straight away – for we don’t want to re-enter the market with old bikes. In the case of the 600 GT, we don’t intend to exit from the adventure-touring space. In fact, we have more exciting bikes planned for this segment.
What new bikes can we expect from Benelli? Are you going to launch the Leoncino and TRK?
Dante: Yes, both will be launched. Our first step is to bring in the twin-cylinder 500cc platform, which comes in two chassis, two models and four variants. The Leoncino will come with on-road and off-road options, as will the TRK. There will be some modifications in the suspension set up, muffler, tyres and wheels to make these bikes more flexible for both riding conditions. We are hoping to achieve this by the end of this year.
This year, we’ll also launch the facelifted version of the 302. We are currently working on the new-generation 302, which will be launched a year after the launch of the facelifted version. Also, in the 250 to 300cc segment, we’re planning to launch the Leoncini and TRK, though we haven’t decided whether it’ll be a single- or twin-cylinder. What’s decided is that they will be launched next year.
There is also a new single-cylinder technology that’ll be available in the 135 to 200cc segment. It’ll have two or three spark plug engines. This platform is both modern and brand new.
Are you also planning to launch the Imperiale?
Dante: Yes, we will launch the Imperiale in two versions – 400cc and 530cc. The Imperiale also comes with new engine technology that was developed by us last year. It’s more than just a motorcycle, as we’ll also cater to the experience of riding by launching exclusive apparel as well as features like access to the Internet on the bike. This will allow us to enter the Royal Enfield segment, but we believe that we’ll offer a good option for buyers, as our strategy is and continues to be a performance affordable two-wheeler company.
The localisation of spare parts plays an important role in keeping costs down. What is Benelli’s plan for India?
Vikas: Our strategy in India has two phases. Phase one is to get back into the market as soon as possible, including getting spare parts and bikes to our consumers. So, to achieve this, we’ll first take the CKD route, while simultaneously we’ll have a team working on phase two. This team will consist of tech experts from our side and from Benelli global, who will evaluate whether to go only for localisation of parts or set up an R&D facility for manufacturing or maybe for designing bikes in line with ‘Made in India’ and then exporting them. Also, we have to keep in mind the auto component ecosystem in India, as most of them are supplying up to 400cc in the mass market, but we are looking at 500 to 750cc. So, can they scale up their technology? This study, in our opinion, will take from 8 to 18 months before we take a decision for phase two.
One thing is for sure that, by 2019, we’ll have around 10 to 12 bikes, including upgrades and new models, which will cover all three segments – city riding, cruising and adventure riding.
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