01-17-2017, 11:48 AM
There's heavy competition at the low end of the motorcycle market, which is great for consumers. It's not an attractive space for new entrants unless they have a disruptive concept. The original Honda Civic was disruptive in a world of Plymouth Fury's with 440 cu. in. V8s and high energy prices.
Any new entrant in the motorcycle market without a low-cost production system would be insane to challenge incumbents at the low end. Motus is very smart to go for a skimming strategy at the top end. In their recent open letter (repeated in my post above) they mention that they will be bringing more models to market:
"As long as we remain laser focused on providing an incredible customer experience, we will continue to grow and launch additional models in segments that complement our brand promise."
As you indicated, new entrants at the low end are going to be Chinese.
Any new entrant in the motorcycle market without a low-cost production system would be insane to challenge incumbents at the low end. Motus is very smart to go for a skimming strategy at the top end. In their recent open letter (repeated in my post above) they mention that they will be bringing more models to market:
"As long as we remain laser focused on providing an incredible customer experience, we will continue to grow and launch additional models in segments that complement our brand promise."
As you indicated, new entrants at the low end are going to be Chinese.
