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Looking Forward to Festive Momentum

The festive season is round the corner and manufacturers are looking forward to it to regain the sales momentum that has been eluding them for the past 10 months. With things heading back towards normality and the supply chains getting completed, we may expect an increase in the number of new two-wheelers being sold.

With the restrictions on import from China, two-wheeler manufacturers are going to face difficulties in production as well as costing because many of them source components from that country. Particularly with the BS6 norms in force, most of them import fuel-injection systems from China. In this context, there is a question that we need to ask ourselves: why is it cheaper to import components from China than manufacturing them here in India? You don’t require rocket science to manufacture components in India; it is all the hurdles and restrictions laid down by the authorities that make doing business a tough proposition.

If a ban on Chinese goods comes into force, most of the electric two-wheeler manufacturers will have to shut shop since most of the critical components such as batteries and motors are imported from the Land of the Dragon.

The strict enforcement of the rule regarding wearing masks is laudable, but I wish the authorities would enforce traffic rules in the same manner. Rules such as wearing a helmet, not more than two persons astride a two-wheeler, and not riding down the wrong way. In doing so, we would also save a lot of lives that are lost in road accidents. In the Koregaon Park area of Pune, for instance, we see the police apprehending people for breaking a traffic signal, which is good, but they turn a blind eye to those riding or driving down the wrong way, which is sad. This anomaly needs to be addressed forthwith.

Aspi Bhathena
Editor

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Let’s Look at the Positive Side

This month Bike India completes 15 years. The magazine, dedicated only to bikes, has gone from strength to strength over this period of time.

As we all know, the Indian economy has been showing a decline for the past couple of years. COVID-19 struck in March this year and it resulted in a further decline in the sales of two-wheelers, what with the country going into a lockdown for three months. The partial “unlock” has seen some growth in sales figure, but, at the same time, manufacturers are facing difficulties in the supply chain because some of the vendors are located in containment zones.

Well, enough about the doom and gloom. Let’s look at the positive side. Two-wheeler sales have shown signs of recovery. Royal Enfield posted their best sales figures in the month of June 2020. The feather in the cap for Royal Enfield is that the Interceptor 650 was the best-selling motorcycle above 125 cc. It is a big achievement to be number one in a market like the United Kingdom. It shows that people want pure, unadulterated motorcycling at an affordable price. The Interceptor 650 has enough power and performance to satisfy most riders and the only electronic aid on the bike is ABS for safety. Indeed, this is a proud moment for the Indian automobile industry because an Indian motorcycle manufacturer has achieved this.

This month I would like to welcome Adam Child ‘Chad’ to the Bike India team. Adam will be a regular contributor to the magazine. In fact, he has started his innings with the cover story on the Ducati Superleggera.

On the occasion of the 15th anniversary of Bike India I would like to thank all our readers and the manufacturers for their support. I would also like to thank the marketing team and my editorial team for their support and hard work in bringing out this magazine month on month.

Aspi Bhathena
Editor

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The Slow Crawl to Normality

The country is limping back to normal life ― or, at least, a semblance thereof ― after being shut down for nearly two-and-a-half months. However, even now there are a lot of restrictions on how many people there can be in an office, shop or dealership at a given time. Decent sales numbers still seem a distant prospect.

The prevailing social distancing norms should promote the sale of two-wheelers, for people would prefer to travel in or on their personal mode of transport rather than be packed like sardines with total strangers on a local train or a municipal transport bus. Nevertheless, the manufacturers will still have to struggle to sell their two-wheelers because the government is not being helpful in any way, be it reduction in the GST or a tax break in personal income-tax for the salaried middle class. To make matters worse, they have increased the price of petrol, diesel, and LPG (cooking gas) when the global crude prices had hit rock bottom. Fuel prices are critical not only in the matter of daily commuting but also in the transport of all the essential commodities and this hits the ordinary citizen. Another worrisome deterrent is that people are no longer sure about their jobs. While some have taken a pay cut, others have already lost their jobs. The sentiment is far from sanguine throughout the country. The only good news is the withdrawal of the five-year mandatory insurance for new two-wheelers, which should bring down their on-road prices.

During the COVID-19 lockdown one debate has been settled: that about the print versus digital format. Most of our readers have written in, asking us when we will be printing the magazine in the usual hard copy format as they are fed up with reading e-magazines on their iPad or Kindle. Many of them said that they only got as far as the introduction before moving on to the next story. It has now become clear that it is by no means the end of the road for the print media. They are here to stay. Take care and stay safe.

Aspi Bhathena
Editor

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Normality Still Elusive

Not much has happened in the two-wheeler world on account of the nationwide lockdown in the wake of the pandemic outbreak. Some of the manufacturers have started limping back to production activity after being allowed 30 per cent of their workforce. Allowing the manufacturers to start activity is like allowing a part of the chain to function. The rest is still under lockdown and it does not make sense if they cannot get the components to complete the bikes. Even if they do manufacture bikes, they cannot sell them because the dealerships are still under lockdown.

Admittedly, we are not experts on economy or health, but what is happening during this lockdown is that it looks as if nobody knows the direction in which we are headed with the number of COVID-19 cases on the rise by the day. It appears that we are going to be under a permanent lockdown if this number keeps rising. As of now, no one knows when the government is likely to lift the lockdown.

The economy was already heading south before the virus hit us and now we are headed towards a recession. Rajeev Bajaj is the only industrialist who has the courage to call a spade a spade on the national television. I wish we had more industry leaders like him.

By the time the government decides to lift the lockdown, most small businesses will have to shut shop and the relief package has nothing for the auto industry or to promote sales by reducing the GST. What sense does it make to classify two-wheelers as luxury goods and slap 28 per cent GST on them?

During the fourth lockdown we were supposed to see a certain easing of the restrictions, but no such luck so far. In fact, Pune is still under a full lockdown. Even after eight weeks there is still no relief for the migrant workers. It breaks my heart to see all the poor people ― men, women, and children ― walking hundreds of kilometres towards their native villages in this scorching summer heat.

Aspi Bhathena
Editor

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Coping with Difficult Times

Although we have been under a countrywide lockdown for the past
month and a half, we have made an attempt to keep you abreast of whatever little is going around the world. There has been bad news in the last month, starting with the outbreak of the COVID-19 pandemic. The world of motorcycle racing lost Tony Rutter, a seven-time Isle of Man TT winner and four-time world TT-F2 champion.

The pandemic has thrown the whole world out of gear with most countries going into total or partial lockdown. That means no production and no prospect of sales. The manufacturers will be able to survive this lockdown but the vendors and dealers will find it difficult to sail through on account of the financial crisis. After all, they have to pay their employees’ salaries and rent for their premises, etc. In the absence of production and sales, things are going to be extremely difficult.

There may be a silver lining to the dark cloud once the lockdown is lifted. The way we live will change with social distancing becoming a way of life. People will have to stop using public transport where, for the most part, they are packed like sardines and start relying more on personal transport. This will boost two-wheeler sales.

The government needs to support the manufacturers by allowing a reduction in the GST as well as by allowing them to sell all the BS4 stock. If this is not done, there might be a lot of repercussions. The industry was already in the throes of a slowdown even before the virus struck.

This month we will not be printing the magazine; it will come to you only in the digital format. Even if we were to print the magazine, it would not be possible to circulate the copies in the present situation. As of now, please stay at home and stay safe.

Aspi Bhathena
Editor