Triumph charts export route, ups CKD line

Triumph Motorcycles has announced plans to increase its completely knocked-down (CKD) assembly capability at its Manesar facility, even as it prepares to export its luxurious bikes from India.

In FY17, the British company’s portfolio in India comprised 80% of vehicles imported through a Free Trade Agreement (FTA) from Thailand, with the remaining 20% being CKD units. Starting this month onwards (FY17 July to FY18 June), a massive 90% of its portfolio will comprise CKD units, with the remaining being through FTA.

“Overall, what we have done is a strategic change. Last year, we would use our FTA with Thailand, where we have a factory, to get bikes immediately after launch. Now, we think India needs more flexibility and investment, so we have increased CKD assembly in India,” Triumph Motorcycle India Managing Director Vimal Sumbly told DH.

It must be noted that globally, Triumph has two manufacturing bases – the UK (two plants) and Thailand (three plants), besides two assembly plants – one in Brazil and the other at Manesar in India.

This move, apart from drastically reducing the time needed for delivery, will also help regularise prices much to the glee of discerning customers. It has also come in tandem with the launch of the GST. 

Reflecting about the new tax regime, Sumbly said, “A little challenge that has happened for motorcycles of over 350 cc engine capacities is the introduction of a 3% cess, over a tax of 28%, taking the total levy to 31%. Hence, prices have gone up in the premium motorcycle segment, but this is bound to be a short-term hit.”

Meanwhile, Triumph is eyeing to export motorcycles from India to Nepal, during the first half of this year. The motorcycle segment in India, consisting of models of above 500 cc, stands at 10,000 units a year. “We operate in the segment involving motorcycles of over 500 cc and priced over Rs 5 lakh, where we dominate a third of the market at 30%, selling about 1,200-1,300 units a year,” Sumbly said.