Classic Legends, the parent company of iconic motorcycle brands Jawa and Yezdi, has announced significant price reductions across its product lineup, bringing most models under the Rs 2 lakh mark. This move comes in the wake of recent GST reforms that have lowered the tax rate to 18% for motorcycles under 350cc, directly benefiting the company's 293cc and 334cc engine models.

Price Reduction Across the Range

The price cut applies to a wide range of models in the Classic Legends portfolio, including:

• Adventure
• Roadster
• Bobber
• Scrambler

These models, which previously may have been priced above Rs 2 lakh, are now more accessible to motorcycle enthusiasts across India.

Engine Specifications

Classic Legends' motorcycles are powered by Alpha2 liquid-cooled engines, known for their performance and reliability. The lineup features two engine variants:

• 293cc engine
• 334cc engine (producing 29PS and 30Nm of torque)

These engines fall within the sub-350cc category, allowing them to benefit from the reduced GST rate.

Extended Warranty and Service Network

To further enhance customer confidence, Classic Legends offers:

• A generous 4-year/50,000 km warranty
• Over 450 sales and service touchpoints across India

This extensive network ensures that Jawa and Yezdi owners have easy access to support and maintenance services.

Industry Impact

Anupam Thareja, co-founder of Classic Legends, welcomed the GST rationalization, stating that it will bring significant positive changes to the motorcycle industry. This sentiment reflects the potential for increased sales and broader market reach for manufacturers operating in the sub-350cc segment.

Market Implications

The price reduction is expected to make Jawa and Yezdi motorcycles more competitive in the market, potentially attracting a wider customer base. As these iconic brands become more accessible, it could lead to increased market share and sales volumes for Classic Legends.

The move also aligns with the government's efforts to stimulate the automotive sector, particularly in the two-wheeler segment, which plays a crucial role in India's transportation landscape.

For motorcycle enthusiasts and potential buyers, this price reduction presents an opportunity to own premium motorcycles from storied brands at more attractive price points, potentially influencing purchasing decisions in the competitive Indian motorcycle market.

Classic Legends, the Mahindra group-backed manufacturer of iconic motorcycle brands Yezdi, Jawa, and BSA, is gearing up for a public listing within the next 12 to 18 months, according to Managing Director and co-founder Anupam Thareja. The company's move towards an Initial Public Offering (IPO) is seen as a strategic step in establishing itself as a global mid-market motorcycle brand rather than a means to raise immediate capital.

Financial Position and Stock Options

The company currently holds a robust capital position of Rs 875.00 crore, indicating a strong financial foundation. In preparation for the public listing, Classic Legends has already issued stock options to its employees, aligning their interests with the company's future growth and market performance.

Electric Motorcycle Development

Classic Legends has completed the design and development of an electric motorcycle. However, the company has decided to postpone its launch due to current market conditions. Thareja cited several factors influencing this decision:

• Expensive battery packs
• Inadequate charging infrastructure
• Limited retail financing options for electric motorcycles

Global R&D and Market Strategy

Classic Legends has established a strong international presence with its Research and Development center in Coventry, UK. This facility, supported by a 50% government grant, underscores the company's commitment to innovation and global expansion. Notably, the UK is expected to be the first market for the launch of Classic Legends' electric motorcycle when market conditions improve.

Electric Two-Wheeler Market Outlook

Thareja shared insights on the adoption of electric two-wheelers, predicting a phased transition:

1. Scooters are expected to lead the electric transition
2. Commuter segments will follow
3. Premium classic segment is anticipated to be the last to adopt electric technology

Conclusion

As Classic Legends prepares for its public debut, the company demonstrates a balanced approach to growth and innovation. While ready with electric motorcycle technology, it shows prudence in timing its market entry. The upcoming IPO could provide investors an opportunity to participate in the growth story of a company that blends classic motorcycle heritage with future-oriented technology.