Triumph offers 7-yr loan plan to make bikes affordable

MUMBAI: British motorcycle maker Triumph Motorcycles Ltd is pulling out all stops to make its models more affordable in India. After stitching up a global alliance with Bajaj Auto Ltd to produce the mid-segment bikes locally, the iconic British brand is offering an attractive finance scheme to make its highend models easy on wallets.

Under the scheme, the maker of Bonneville motorcycles is offering a seven-year loan for all its models through a tie-up with HDFC Bank Ltd.

The move, a first for a premium two-wheeler maker according to Triumph Motorcycles (India) Pvt. Ltd managing director Vimal Sumbly, will help the company attract customers who may otherwise not be able to afford the bikes.

The Triumph motorcycle range in India starts from ₹7.3 lakh and goes up to ₹23 lakh. Typically, loans for superbikes are offered for tenures ranging from three-five years.

“HDFC has been our preferred financier. Owing to a huge portfolio of models that we have and a profile of customers that have a clean credit history, they are now offering a loan for seven years with an interest of 11.5%,” said Sumbly.

An email sent to HDFC Bank on Thursday remained unanswered at press time.

Among other factors, easy finance schemes have been fuelling growth in the superbikes segment, which used to be the preserve of a select few until five years ago.

Sales of superbikes (those with engine capacity of more than 500cc) have been growing at a brisk pace. From 500 units a year in 2008, sales grew to 10,000 units in calendar year 2016 and are expected to double in the next three years, said Sumbly.

He expects the superbike market to go the luxury car way in India, which too has been advancing at a fast clip, albeit with some hiccups in the last two years due to policy changes.

Banks are keen to ride the bandwagon and have designed specific schemes to address the market. HDFC Bank, for instance, offers a separate twowheeler loan scheme called “Super Bike Loan” as per its website. The scheme offers funding of up to 85% of the bike’s cost which can go up to 90% depending on the buyer’s profile and credit history. It also provides funding of up to ₹2 lakh for accessories. The interest rate for this scheme is 12.9%, which is lower than some other two-wheeler loan schemes.

Seven out of every 10 models sold by Triumph in India are bought on credit. Of this, half the buyers take a loan for one-and-ahalf to two years, the rest borrow for three-five years.