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By Ankit Ajmera and Rachit Vats
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Nov 6 (Reuters) - Harley-Davidson Inc's pole position in India's fast growing big-bike class is set to face a across-the-board analysis back Indian-owned Royal Enfield launches its aboriginal ample bike on Tuesday.
The world's better bike and scooter bazaar with 18 actor in the year to aftermost March, India accounts for beneath than 2 percent of Harley's all-around sales but is now a assembly breadth for its accepted Street 750 bike and a able architect of advance as U.S. appeal slows.
Harley was the aboriginal aloft amateur in the country's big bike bazaar - authentic as those with engines aloft 601cc - and controls 60 percent of a articulation that has about tripled in admeasurement back 2014 and is accepted to bifold afresh in the abutting 4-5 years.
With the accession of Royal Enfield, however, it faces a locally-owned administration arrangement that dwarfs Harley's almost 30 outlets by a assorted of 24.
Were Enfield to address alike 10 of its new big bikes to anniversary of its about 700 locations, it could bifold Harley's 3,700 in anniversary sales.
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A day afore the new bike's launch, Royal Enfield on Monday apparent a 650cc accompanying engine, putting it on clue to attempt absolutely with the Street 750.
India-based industry analysts and commentators say that Harley's administration arrangement in India charge be broadcast if it is to accord with the new antagonism and ascent appeal from the country's 1 billion additional consumers.
"Having aperture numbers in the mid twenties is acutely a attenuate administration spread," SBICAP Securities analyst Mahantesh Sabarad said.
"India has over 30 10-million-plus cities and anniversary such burghal needs 2-3 dealerships to baby to a beginning bazaar of bike enthusiasts."
Asked about the new bike aftermost month, Harley Chief Executive Matthew Levatich told Reuters that he would not abolish a competitor's strengths but that he had acceptance in Harley's cast and would not be alteration strategy.
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THIN DISTRIBUTION
Popular activity for commuting bikes in India's densely busy burghal streets provides a far beyond addition abject than in western markets breadth Harley sells best of its bikes.
Harley affairs to access its arrangement but is alert about abrasive its exceptional cast and has had problems with complaints about bike application in India in the past.
"The specific affairs and the amount at which we (expand) is a action of award a big abundant bazaar breadth and a absolutely competent banker that can accomplish the investments to accept the cast acquaintance that we appetite to accept for riders," Levatich said.
"So that's allotment of the formula, which will artlessly accomplish it apparently slower and beneath close than best of our competitors will do. But that's our action and we are afraid to it."
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Royal Enfield's new bike - to be apparent in Milan on Tuesday - is accepted to retail at about rupees 300,000 ($4,640) compared to Harley's Street 750 at added than 500,000 rupees.
Other Harley admiral say they feel assured that it will abide a cast Indians will attending up to.
"When it comes to admiring those riders from Royal Enfield to Harley Davidson, we accept a clue almanac of that now back we accept been in India," said Marc McAllister, Harley's managing administrator for all-embracing markets.
($1 = 64.6650 Indian rupees) (Reporting by Ankit Ajmera and Rachit Vats in Bengaluru; alteration by Patrick Graham)
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