The Hypermoard 698 Mono is one of the least powerful bikes Ducati has ever developed. Yet, it is priced higher than the Hypermotard 950 in India. At Rs 16.50 lakh (ex-showroom), the Hypermotard 698 Mono doesn’t make a sane purchase. So, in this story, we tell you why this Ducati is so expensive.
Nearly 90 per cent of Ducati’s line-up comes from Thailand as completely built-up (CBU) units. The Italian brand has a massive manufacturing unit there, and India has an FTA (Free Trade Agreement) with Thailand. As a result, none of the Ducati motorcycles that come from there attract custom duties. Interestingly, the Hypermoatard 698 Mono also comes from Thailand but is taxed heavily due to one simple reason – it is a motorcycle that has a displacement of less than 800cc. The FTA tax structure is valid only for bikes that are above 800cc - anything below 800cc is taxed at 50 per cent of the declared value of the bike.
The second reason behind the Hypermotard 698 Mono being this expensive is due to the margins – for Ducati India as well as for its dealers in India. Premium bikes usually have hefty margins, even for dealers. Their overhead costs are quite high, and because Ducati is a premium brand, they have a set of rules to follow when it comes to renting a space for the showroom, which is usually at premium locations in metro cities, and also employing quality staff. So to recoup their investments, the brand offers some good margins for them to not only cover the operational costs but also make it a profitable business.
At such a price point, the Ducati Hypermotard 698 Mono is unlikely to find success in India, but the company would still keep it in its portfolio as it would ideally want to offer all the global bikes in the country.