Can Ducati deliver a standard segment without a partner?
According to Motorcyclesdata, Ducati Motor has achieved an impressive 25.1% increase in global year-to-date sales, totalling 48.342 units sold by the end of September 2021. However, the registrations declined by 2.3% in the third quarter.
Post-Covid, we could see multiple motorcycle manufacturers struggling. But then, when it comes to Ducati, we see a phenomenal rise in the sales graph.
Asia Pacific Motorcycle Market Size
We sure don’t want to focus on how they achieved because we know Ducati makes sure they provide more than expectations.
However, today’s crucial question is whether Ducati is losing the lower displacement market share?
If we look at the statistics provided by Fortunebusinessinsights they say the global motorcycle market is projected to grow from $298.58 billion in 2021 to $485.67 billion in 2028 at a CAGR of 7.2% in the forecast period, 2021-2028.
Standard segment is close to 70%
And when it comes to lower displacement segment( standard segment). The motorcycles that fall under the standard segment are
- Combination of advanced technology with a classic design with the upright stance, while the feet are in a natural position and controls and pedals are within reach.
- They are positioned on the lower end of the power spectrum as they are effortless for any beginner to ride.
- Their price ranges between $5000 to $10000.
- Excellent examples will be Hondas CB and Kawasaki’s Z series.
And let’s not forget apart from the standard segment, there is also a massive market for less than 300cc, especially in Asia and Africa.
Looking at the Market Segmentation 2020, we see Ducati missing the pie in close to 70% market share. Well, is it huge? It is for sure.
Whether it’s the new Monster accompanied with the 937 cc Testastretta 11 ° Euro 5 engine or the new Hypermotard 950 or all-pervasive Superleggera V4 that comes with a 998cc engine, we don’t see anything under 900cc in Ducati’s portfolio.
Is this how Ducati has positioned themselves?
While Hero and Harley Davidson have already tied
There is no official word regarding the sizes of motors. However, the machines will have 350 cc and above displacement.
Hero MotoCorp is known for its 70 per cent of the market share in the entry-level bike segment in India.
To enter the middle-weight segment that Royal Enfield heads. HeroMotoCorp will break its ritual of 225 cc by bringing a surge in the engine’s power.
The decision for transition will be marked as the biggest-ever bet for this Indian automaker.
For Hero, Karizma ZMR was introduced as the most extensive bike with a 225 cc engine. The model was discontinued in 2019.
Further, Hero’s portfolio consists of only two bikes Xtreme 200S and the Xpulse series topline.
Another budding partnership we see is between Bajaj and Triumph
In June 2019, the British Iconic motorcycle brand and Indian marquee Bajaj made their minds to collaborate.
With the growing market in 400cc to 700 cc, both the brands wanted to utilise their capabilities in Asia and across the globe.
Bajaj is already a dominant player in Asia, and Triumph is an iconic British brand. The partnership will bring some new flavours of motorcycles to the Asian Market.
Analysts believe the alliance will help enhance the overall portfolio of Bajaj Auto. It does mean Bajaj was missing a solid brand in the “easy riding” or cruiser bike space.
What do we see here?
Well, it is easier to see how Triumph can make its footprint in the Asian market for lower displacement motorcycles using India as a hub and Bajaj as a partner. Triumph earlier tried to enter the Asian market with 250cc. However, it did not work well.
Bajaj motorcycles will manufacture, and Triumph will be responsible for marketing to keep the cost low.
The plan is to develop multiple motorcycles on a single new platform that helps cater to various flavours for people interested in buying lower displacement motorcycles.
These motorcycles will be released in the market by 2022 and compete with Royal Enfield motorcycles with a larger share in the Indian market.
We have two great examples trying to get hold of the pie in the 70% market share.
Will we see Ducati going in the same direction?
And if Yes, we don’t see why Ducati should not use Bezzi’s latest DUCATI DESMO MONO 450 concepts using the single-cylinder he has designed every style, whether it is Scrambler, Streetfighter or Enduro that falls in the 450cc range.
And who would not love to ride a 450cc Scrambler, Streetfighter or a Enduro?