Benelli is one of the newest players in the ever-expanding motorcycling segments in India. 2019 was one of their strongest years with offerings in multiple categories catering to a wide set of audiences. With 'unlock' now in progress, we decided to catch up with Vikas Jhabakh, Managing Director at Benelli India to understand further plans for the domestic market including the upcoming BS6 Benelli Motorcycles. Benelli sells motorcycles in the country via Hyderabad-based Adishwar Auto Ride India, a subsidiary of the Mahavir Group.
91Wheels: Has your assembly plant resumed full operations now?
Vikas Jhabakh: Operations at the plant have resumed but we aren't working at full capacity yet, keeping in mind the protocols to keep our employees safe from the spread of COVID-19. However, by August 2020 we should be working at our full capacity.
91Wheels: How much of the installed capacity have you been able to utilize till now?
Vikas Jhabakh: We have upgraded our production capacity from 7,000 units to 30,000 units a year, which can be increased further if required. The reason behind scaling up the production capacity is to ensure we meet the future demand for motorcycles, which will increase with our expanding dealership network.
91Wheels: During the lockdown stage with sales going down to zero, how did Benelli and Mahavir Group help the dealer partners in terms of inventory management and liquidity flow?
Vikas Jhabakh: The entire period in which the country was on lockdown, a lot of retail businesses fell to zero. Overall, it was a tough period. Fortunately for us, since the BS-IV was phasing out by the March end, we were in the process of clearing off our stock as well as dealer stock.
Since the BS6 introduction couldn't go through in April due to lockdown, there were no inventory holding issues. Nonetheless, we have been working very closely with our dealers and have been in touch throughout this period and made sure we took care of them by introducing various initiatives to get them through this period.
Also, the after-sales business has already resumed. We have a fairly decent bike park in all the cities we are present in. This has allowed the after-sales business to open up to a large extent and that has helped in managing the liquidity flow. We have started spare parts supply as well.
91Wheels: What are the steps taken by Benelli to ensure customer safety at both the showroom and workshop levels?
Vikas Jhabakh: Even before the COVID situation, at Benelli we placed a lot of emphasis on customer safety with policies like a compulsory helmet, jacket and shoes for a test ride. Customers are also educated about safe riding during the vehicle delivery process to ensure safe riding practices. The entire COVID situation has taken the need for customer safety to a whole new level. As a result, we have set up SOPs from both sales and service aspects to ensure both our customers and employees are able to connect in the safest environment possible.
91Wheels: Good to see the BS6 Imperiale 400 out in showrooms. What changes were made to make it BS6 compliant?
Vikas Jhabakh: A total of 15 components have been changed in the Imperiale 400 to make its BS6 compatible. As a result, the bike can handle better, is greener to the environment and has improved low and mid-range torque. It should also prove to be more fuel efficient and refined. Also, the air-flow to the engine has been improved and fuel injectors are changed to deal with lower sulphur fuel as well.
91Wheels: Could you also help us with the percentage of localisation on the Imperiale 400 and some of the key parts that are made in India?
Vikas Jhabakh: The Imperiale 400 has been in the market for just about 6 months now. While the exact number of components cannot be shared at this time, I can tell you that we are working with more than 30 suppliers within India for the supply of parts and we aim to increase this count to localize the Imperiale further, in the near future.
91Wheels: What about the upcoming BS6 Benelli Motorcycles? Is the 600i next on the cards?
Vikas Jhabakh: Our main objective was to bring the BS6 Imperiale 400 back in the market. Initially, we wanted to bring the bike in April 2020 but due to the pandemic crisis, the plan got delayed. That said, we are glad to have brought it back into the market now.
As far as the remaining portfolio for upcoming BS6 Benelli motorcycles is concerned, we intend to bring back the entire line-up in the BS6 format. To start with, Benelli's 500cc line-up is also in the final stages of homologation and they should be reintroduced in the market by the end of this calendar year.
Post that, we will focus on bringing back the 300cc range, after which the 600i will follow suit.
91Wheels: What about the 150-250cc market - we understand you have put your plans for manufacturing plant on hold but are you planning a motorcycle under 250cc?
Vikas Jhabakh: Our focus is purely on the 250cc-600cc segment. We have no plans of entering the lower displacement category any time soon. However, going forward if we see a demand for performance motorcycles below the 250cc segment from the market, we might consider it.
91Wheels: India does not have a proper moto scooter yet. Has Benelli thought of experimenting with a powerful 200-250cc scooter offering for the country?
Vikas Jhabakh: As I mentioned earlier, our immediate plan of action is to re-introduce the BS6 line-up in India. Post that, we intend to bring in the new bigger displacement offerings from Benelli, but that is something we can look at probably by the end of 2021.
So, our main goal is to strengthen Benellis motorcycle line-up. A moto scooter is not something that is under consideration as of now.
91Wheels: What about the EV space?
Vikas Jhabakh: Benelli already has a strong R&D setup in the EV space. There are EVs already being supplied to other parts of the globe and we are very happy to see that the Indian government is also taking very proactive steps on EV. So, when the time is right, and the market is ready, we will surely work on bringing electric vehicles to India.
91Wheels: Could you tell us about the current dealership strength along with the penetration into smaller towns?
Vikas Jhabakh: As of today, Benelli India has 28 showrooms spread across the country and we have another 14 outlets that are under various stages of completion. But once the lockdown opens completely, we will be focusing on ramping up the completion process and launch them.
This should take our footprint count to 42 outlets across India. While COVID-19 has set us back up to some extent, we are confident about setting up a total of 70 outlets by the end of this financial year, out of which, around 50% penetration would be into smaller towns.
The aggressive move towards increasing Benelli India's footprint into smaller towns is mainly because of the introduction of the Imperiale 400, as our customer base has widened exponentially.
91Wheels: Given that most upcoming BS6 Benelli motorcycles will be priced upwards of Rs. 2 lakhs (on-road), how will you help prospective buyers convert when it comes to easier loan facilities?
Vikas Jhabakh: We are not only working with multiple national banks and financial institutions to help our customers gain easier credit but on a dealer level, we are also working with local financial institutions to help avail credits and loan facilities for customers to own a Benelli.
Going forward, we are working on financial schemes to make it even more convenient for customers to take home a Benelli.
