Britain has voted for itself to exit the European Union – something that has shocked the global economies. And this isn’t good for a manufacturer like Triumph Motorcycles who does business in foreign markets.
This historical exit has devalued Britain’s currency, which has hit a 30-year low against the dollar today. While this isn’t a good news for them, it’s an advantage for countries like India as it imports a lot of goods from Britain. And in our case, it’s motorcycles. Triumph currently sells its bikes in India in two forms – completely knocked down (CKD) route and completely-built-up (CBU) units. The CKD Triumph models comes from their three of their Thailand facilities. One facility manufactures chassis and swingarms, the second one fabricates plastic parts for the bodywork and the third factory produces engine components like camshafts and crankshafts. So the price reduction in the CKD models is next to minimal. What remains are the CBU models like the Tiger Explorer, Rocket 3 and the Thunderbird that are manufactured at Triumph’s Hinkley facility.
The GBP currency is expected to go down more in the next couple of days as EU is yet to react to the Brexit. The Market believes that the Union will take strict action against this development, so that no other EU country follows Britain footsteps. In short, CBU Triumph bikes might see a big price cut in the future as they come to India via the CBU route.
We’re waiting Triumph Motorcycle India to comment on this development.
