Royal Enfield Focussing On Global Market

Royal Enfield India

Royal Enfield is pretty much having a jolly time in the Indian mid-size motorcycle segment with engine capacities ranging from 250 – 750cc, holding a huge 90 percent market share. Riding high on this success story, the Indian bike maker is mulling to achieve the same feat in international markets as well.

India will always be the primary market for Royal Enfield bikes, with UK being the heritage country, but the Chennai based manufacturer is planning to get a lot of business from markets like Latin America, Indonesia and Colombia. The reason for this is due to the fact that these countries are similar to ours in the economic and demographic aspect, while also experiencing rapid growth. A large population comprises of the commuter class with many looking to upgrade their motorcycles and get into the mid-size displacement segment, where Royal Enfield is unparalleled in India. The company is trying to introduce these sorts of customers to their brand overseas.

However, now arises the problem of production capacity because the company’s plants at Oragadam and Thiruvottiyur in Chennai are already running at full capacity. The company is not looking forward to re-work the manufacturing setup as of now but the President of Royal Enfield had also mentioned that they will not be assembling or manufacturing any units outside the country.

Royal Enfield was able to sell more than 3 lakh units in 2014, exporting just 6221 units from the same. The company is eagerly looking forward to boost its export numbers but will also have to keep making progress in the Indian two-wheeler market because many bike makers are entering the same segment by either selling motorcycles in the same price bracket or by offering more performance for each buck paid.

Sales target for this year has been set at 450,000 units and Royal Enfield will also be expanding the production capacity of its current facilities to six lakh units. Though majority of the units will be retailed in India, the export share is expected to grow exponentially.


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