Benelli To Set Up Manufacturing Unit In India; Will Manufacture For Local Market & Export

Within the next two years, Benelli India aims to have its own manufacturing plant in India. These plans have been in the making for a while and they have now been confirmed. The plan is currently in the stage of finalising the location for the upcoming plant. This is proof that Benelli is having a good run in the Indian market this time around.

Benelli is one of the oldest two-wheeler manufacturers in the world and its motorcycles are loved in various global markets. In India though, the Italian motorcycle manufacturer had a bumpy start.

Benelli had earlier entered the Indian motorcycle market in a partnership with DSK and the partnership went sour due to various reasons, forcing the company's assets and dealerships in India to remain stagnant for a few months.

The motorcycles they had sold though continued performing well despite having no supply of spare parts for a long time. Benelli is now back and the company's second innings as a partnership with Adhishwar Auto Ride India is going strong.

The brand is now bigger than ever before, with a total of 18 dealerships across the country selling five Benelli models. Adhishwar Auto ride India is the distribution partner for Benelli India and handles assembly of Benelli bikes in India at their assembly line in Hyderabad.

Currently, the plant can assemble around 10,000 motorcycles per annum and this is okay for the number of motorcycles Benelli is currently selling per month. However, Benelli is expecting demand to grow soon, and the company is also planning to have a total of 40 dealerships across India by the end of 2019. The company wants that number to grow to 100 dealerships and 10-12 products by 2020.

Keeping all this in mind, Benelli India has taken the right decision of building its own manufacturing plant. According to reports, Benelli is currently in talks with a few state governments regarding the location of the plant.

It is considering Tamil Nadu, Andhra Pradesh, Telangana, Uttar Pradesh, Maharashtra and Gujarat for the upcoming project. It is a massive project and hence will take lots of planning before it gets the green flag. Benelli will consider the various incentives and subsidies being offered by the state governments and proximity to a major port before finalising the location.

Yes, the company requires a port to be close to the plant as it plans to export its motorcycles from India. At first, Benelli will start exporting its 200cc bikes to the South-East Asian and African markets.

250+cc motorcycles will be exported to the Australian and European markets. At this point, it is unclear if the 200 and 250cc models will be launched in India as Benelli is portraying a premium image for itself in the Indian market.

Thoughts On Benelli To Set Up Manufacturing Unit In India

India, unlike other countries is a mass market and demand is only expected to grow here. It can be noticed that, when a manufacturer enters the Indian market with intentions of selling lots of cars/bikes, it also sets up a manufacturing facility. Manufacturing in India has several incentives and the government gives a lot of subsidy too.

The most important benefit of manufacturing in the Indian market is that the manufacturer does not have to pay import taxes and the ultimate benefit will be the lowering of prices for products. Keeping this in mind, we can expect prices of Benelli products to drop significantly within the next couple of years when Benelli gets its plant going.