Tuesday 21 February 2012

Girl on a motorcycle : Pricier world

Yamaha YZF-R1 in India
Hello everyone and welcome to the new biking year! And as I keep saying every year, make sure it’s a good one by doing something you’ve always wanted to do on two wheels, but never got round to doing.
For instance go on a long touring holiday across your beautiful country – just think if you could do this on, say, Triumph’s new Tiger Explorer, although any old bike would do. Or a track day... If only on Ducati’s new Panigale! I’m looking forward to seeing the Ducati enthusiasts ride the first bikes here in the UK, and possibly getting a ride on one myself in the near future, although sadly the price is a bit steep for me to afford one...
And speaking of bike prices, over the past few years Yamaha has been shocking UK motorcyclists with whopping big increases on the price of its motorcycles. A Yamaha YZF-R6 suddenly cost a whopping Rs 7 lakh, the price you’d have expected to pay for a state-of-the-art superbike. Meanwhile its YZF-R1 ended up costing an eye-watering Rs 13 lakh, almost on a par with Ducati’s superbikes which have always been exclusively expensive. This move opened the floodgates and other manufacturers followed suit, increasing their prices although never by as much as Yamaha which priced its latest V-Max at a staggering Rs 15.57 lakh.
What gave the Japanese superbikes their popularity was their awesome performance at such affordable prices. Suddenly they had become expensive, out of the reach of many motorcyclists. Yamaha was quick to point out that in the past 10 years prices had barely gone up, plus the latest superbikes were so packed with technology it was no longer possible for manufacturers to keep prices so low.
So you can imagine how excited I was to receive an email last month with “Yamaha perform price surgery” in the subject box. It went on to read: “Great news for customers that thought that some Yamahas were out of reach! Recognising the competitive nature of the market place, the Japanese brand have today, announced a price review on some key models.
‘’Yamaha continue to look at offering the best value for our customers, striving to give not only our customers the best product but continuing to produce exciting motorcycles and scooters of the highest quality for our customers to enjoy well into the future.’’ Reading between the lines, it’s clear the sudden hike in prices had damaged Yamaha sales, leading the manufacturer to announce a reduction in the price of some of its models for 2012.
I’d be very peeved if I’d paid last year’s price for my Yamaha! However looking at the new prices, an R6 has barely gone down at all, while the R1 has had around Rs 40,000 slashed off its RRP, to a more competitive Rs 9.34 lakh. Still, in the words of Britain’s supermarket giant Tesco which according to news reports will be opening branches in India soon - Every little helps!
One manufacturer however that continues to buck the trend by seeing a massive increase in sales is British manufacturer Triumph. I know I keep bringing this up, but new figures show profits nearly doubled in 2011, with the manufacturer from Hinckley increasing its global sales by seven percent to 48,684. Earnings before interest and tax rose from £15.1m to £22.3m in the 12 months to the end of June. The group, chaired by former trade minister Lord Digby Jones, has managed to sidestep the slump in consumer confidence that has hit motorcycle sales particularly hard.
The global market for powerful motorcycles has halved since its zenith in 2007 after shrinking by seven per cent last year. Triumph warned that it remained ‘cautious’ over its prospects for 2012 due to the ‘global economic turmoil’, but said it was reaping the benefit after ploughing more cash into research and development, the result of which has brought us some brilliant new models, including 2012’s Tiger Explorer that’s set to give BMW’s so far untouchable R1200GS a seriously hard time.

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