MV Agusta, the Italian motorcycle manufacturer, faced several challenges that contributed to its limited success in the Indian market. Here are some key factors:

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  • High pricing: MV Agusta motorcycles are known for their premium features, high-performance engines, and exquisite design. However, the brand positioned itself as a luxury segment player, resulting in significantly higher price tags than its competitors. The Indian market, while proliferating, is highly price-sensitive, and most motorcycle buyers prioritize value for money. The steep pricing of MV Agusta bikes made them unaffordable for most Indian consumers, limiting their market potential.

  • Lack of localized production: MV Agusta initially entered the Indian market through a partnership with Kinetic Group in 2016. However, they faced challenges establishing localized production facilities, which led to importing their motorcycles as entirely built units (CBUs). Cursing CBUs attracted high import duties and taxes, making motorcycles even more expensive. This further hindered their market penetration and sales volume.

  • Limited dealer network and after-sales support: MV Agusta had a limited presence in dealerships and service centres across India. The inadequate network made it difficult for potential buyers to access the brand, experience the motorcycles, and receive timely after-sales service and support. Buyers often prefer brands with a robust dealership network and accessible service centres, negatively affecting MV Agusta’s market performance.

  • Intense competition: The Indian two-wheeler market is highly competitive, with domestic and international motorcycle manufacturers vying for market share. Established brands like Royal Enfield, Bajaj Auto, and KTM have a strong presence in various segments and offer a wide range of motorcycles that cater to different customer preferences and price points. MV Agusta faced tough competition from these well-established brands, which already had a loyal customer base and strong market positioning.

  • Limited brand awareness: MV Agusta had relatively low brand awareness among Indian consumers, especially compared to more popular motorcycle brands. While the brand has a rich heritage and is renowned among motorcycle enthusiasts worldwide, its presence and marketing efforts in India were limited. Insufficient marketing and promotional activities resulted in low visibility and awareness, which impacted the brand’s ability to attract potential customers.

Overall, the combination of high pricing, limited local production, a small dealer network, intense competition, and low brand awareness contributed to MV Agusta’s challenges in establishing a solid foothold in the Indian market.

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