“It is about freedom and getting out there again. It is not about electric vehicles and ICE (internal combustion engine) but more about the customer experience and, arguably, I would bet that ICE may well stay for a long time,” the Mahindra Group Chairman said at a recent event to mark the launch of the BSA Gold Star 650 motorcycle.
He, however made, it clear that this did not mean that electric motorcycles “will not come”. As Mahindra put it, “We are ready for electric but don't get locked into this EV vs ICE (debate) which we all have been getting locked into. What do customers want and are we ready to give them what they want is the key,” he added.
The debut of BSA marks yet another legacy offering from Classic Legends, the Mahindra group company which has already introduced the Jawa and Yezdi brands five years ago. After buying out the British brand, the company believes that it is now on the threshold of a faster growth story.
Beyond India, BSA’s other key markets are Europe, Japan and New Zealand while the US will happen by the end of this year. The market for this 650cc range is about 20,000 units annually and Classic Legends hopes to double this with the BSA Gold Star.
Alliance with Tube Investments
The Chennai-based Tube Investments of India has been handling the BSA bicycle brand for decades and has now decided to join hands with Classic Legends where BSA has been put into a joint venture. A press release issued in early August stated that the two companies would each hold 50% of the paid-up share capital.
“This is not about a compromise because we can bring enormous value given the clout they (Tube Investments) have nationwide and the marketing muscle they bring to the table,” said Mahindra.
Classic Legends has been identified as one of the ‘growth gems’ of the Mahindra group even though it is yet to begin firing on all cylinders. As he explained, there were obstacles to reckon with in recent years like the pandemic which ended up being impediments. Yet, as the Chairman reiterated, “Mahindra has always shown that if your product is terrific, you will succeed at some point in time.”
Critics have also said that brands like Jawa and Yezdi have not quite made the impact they were expected to as legacy motorcycles which once had a dedicated rider base. The leadership team at Classic Legends, however, maintained that it also took other companies in this space a long while to build their brand and ecosystem.
“If you look at Jawa and Yezdi, these have communities that exist and we do not need to create them. There is a cult and brand in place. We are understated right now and this community is already in place without any needless hoopla,” said Anupam Thareja, Co-founder of Classic Legends.
Youngsters love legacy brands
According to Boman Irani, the other Co-founder who is Chairman and Managing Director of the Rustomjee Group, youngsters have been making a massive beeline for Jawa and Yezdi. “When we launched these brands, there was this kid who was dying to turn 18 and buy the brand. Nearly 80% of our riders are below 35 and they seek authenticity,” he said.
Mahindra chipped in to add that this was an important point to ponder over. “Is it a danger for a legacy brand to appeal only to the older folk? Is it seen as stodgy..my father’s bike? This is what is astonishing (for Jawa and Yezdi) though. People like retro, papa’s bike is not uncool but cool,” he said.
According to Mahindra, these young buyers like stories by the end of the day. For instance, Pininfarina is over 90 years old “but not stodgy”. On the contrary, it means pedigree. “Vintage wine is not drunk by older people alone. Age, pedigree and vintage brings a charm which we found is disproportionately attractive to younger people,” he explained while driving home the point that legacy brands like Jawa and Yezdi, with BSA now joining the stable, would have their place in the sun.
BSA will be sold worldwide while its electric-related plans are going on in Europe. According to Mahindra, having a plant in the UK “shows our respect for the brand” and it is not a case of the empire strikes back where jingoism typically rules the narrative.
Affinity and respect
“This is about cooperation and there is huge affinity and respect for the brand and its history in Birmingham. We all love a big story and there will be some manufacturing in Birmingham for sure,” he added.
During the launch of Jawa, the first brand to debut under the Classic Legends umbrella in late-2018, Anand Mahindra had told this writer that the bike’s brand values and attributes were in sync with the DNA of his own company’s brand in terms of building niche and differentiated products. He added that the Mahindra group had never been about a mass market brand and had always sought certain differentiation like ruggedness and adventure.
“Differentiation is the key in something like a bike,” continued the Chairman in the 2018 interview. He said today’s youngsters would rather use mobility options like Uber and Ola for fundamental services.“Getting a millennial to buy anything will be a problem in the future. They will look at a shared apartment or an Uber. They are not going to buy anything that does not stand out,” said Mahindra.
Continuing story
This is where a story like Jawa could make the difference since GenNext did not want to be put on something that is only history. What they wanted was a continuing story instead. “That means you make it relevant and make a bike that works and is convenient. If you can do that, you have got a readymade story. If youngsters buy something in mobility, it better be something that looks different,” said Mahindra.
Jawa was, therefore, developed for the millennial who loves brands. They would be perhaps aware of its history but also like to have a bike that fitted in with today’s needs. “The guy whose father had a Jawa is already my customer and he will come for it eventually. We are an understated and cool brand. We are storytellers and emotional tools will drive this category,” said Thareja during the same interview.
Irani, who was also present, said there was a nostalgic feel, culture and a huge ride factor that goes with this brand. “There is an everyday ride possible on a Jawa while on a Sunday, you can keep riding on and on,” he said. With BSA, the trio will be hoping that this will get the mojo working all over again for Classic Legends.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
