Classic Legends aims to disrupt 650cc bike market with aggressive pricing
Anand Mahindra (L), Chairman Mahindra Group, Anupam Thareja, Co-founder of Classic legends Pvt. Ltd (Photo: KAMLESH PEDNEKAR)
Anand Mahindra-backed Classic Legends that owns iconic British motorcycle brand BSA, brought in the BSA Gold Star 650cc to India at a competitive pricing of Rs 2.99 lakh with an eye to disrupting the 45,000-unit 500-800cc bikes market in the country.
Its peer Triumph Trident 660cc is priced at Rs 8.25 lakh. The BSA Gold Star 650cc, in fact, is priced at around Rs 7 lakh in the UK, where Classic Legends has been exporting the model since last one-and-a-half years. The Royal Enfield Interceptor 750cc too is priced aggressively at Rs 3.1 lakh and the Chennai-headquartered marquee two-wheeler maker enjoys a whopping 96 per cent share of the 500-800cc motorcycles market in India going by April-July 2024 sales.
In the 500-800cc category, 16,157 units of motorbikes were sold between April and July 2024 over 9,736 units in the same period last year. Of this, Royal Enfield alone sold 15,599 units. In July, 3,789 units were sold in this category, growing by 31 per cent over 2,898 units in last July.
Speaking at the launch, an upbeat Anand Mahindra, chairman, Mahindra Group, and co-founder of Classic Legends holding a 60 per cent stake, said: “That indomitable spirit of the BSA is hardwired into the new Gold Star 650. A brand is nothing but a connection of stories, of narratives, a montage of memories, symbolism that’s what makes up a brand.”
Mahindra reminisced how in 2016-17 they had sealed the deal with David Bennett — the Britisher who had called him saying the BSA brand was available for sale — within 48-hours, after losing in the initial round to a “well-known competitor”.
Classic Legends entered into a 50:50 joint venture with Tube Investments of India, part of Murugappa Group, in August for using the BSA marks for motorcycles, their parts and accessories, paving the way for launching the BSA motorcycle in India. Murugappa Group owns the trademark for BSA for cycles.
With this launch, Classic Legends aims to double or even triple its presence in the 650cc and above segment, with Gold Star playing a key role.
Classic Legends, which also owns and markets the Jawa and Yezdi brands, was producing 60,000 units per annum at Pithampur, Madhya Pradesh. With the launch of the BSA bike, in FY25 it aims to produce 100,000 units at the site, which has an annual capacity of 500,000 units. It has already spent around Rs 350 crore out of the Rs 1,000 crore investment it announced in 2023 to be made over three years.
Speaking on causing disruption in the market, Anupam Thareja, co-founder of Classic Legends, said: “Disruption isn’t just about price, it’s about price performance. Solar cells, for example, revolutionised an industry not through technological leaps, but by slashing costs. We’ve applied this principle to create a motorcycle that delivers exceptional quality and riding experience at an unprecedented price point. This is the essence of our disruption.”
Thareja added that they are now likely to spend more on marketing, and also expand their dealership network. From a current 450 dealerships (of which 52 will offer the BSA Gold Star), the company plans to expand the network to 600 dealerships by the end of FY25. Deliveries of the bike will start in 10 days.
Since its inception four years ago, the company has faced several challenges, including the impact of Covid-19, which caused its factory to shut down more than 60 times due to supply disruptions. Thareja claimed that despite the odds, they have broken even, and are profitable.
Claiming that almost 80 per cent of their riders are below 30 years of age, Thareja added that their target audience is not defined by traditional demographics but by a shared passion for motorcycling.
Classic Legends is not only focused on the Indian market but also on establishing a global presence for BSA motorcycles. The company has already set up a production facility in the UK to respect the brand’s British heritage while continuing to manufacture in India to leverage cost efficiencies.
“Since originally BSA (Birmingham Small Arms) was built in Birmingham, there will be some manufacturing capacity in Birmingham out of respect for the brand,” said Ashish Singh Joshi, CEO of Classic Legends.
The company is also developing an EV bike in the UK with the help of the UK government. Thareja said, “We are not going to ignore EV, we will launch when the market is ready. You will be shocked at the stellar EV which we are going to announce. However, for now, I think the ICEs (internal combustion engines) are also very efficient if ridden properly. So, we are prepared for both ICE and EV.”
Currently, the company exports to 23 countries across the globe, including the EU and the UK, and is now trying to tap the American markets too.
First Published: Aug 15 2024 | 8:09 PM IST