When Eicher took over affairs of Royal Enfield into their strides, they revived the dying fire of the cult motorcycle manufacturer. Since then RE has been at the top of the game releasing products that got every motorcycle aphrodisiac’s blood racing. Right from the Classic 500 till the very recent Himalayan. These motorbikes spoke for themselves, and the sales figures are the proof of this.
To keep up with the demand, the Chennai based brand had purchased a 50-acre land back in 2014 and took a record 15 months to build their third production plant in the country.
With 50% of Royal Enfield’s growth coming in the last five years, we see why it plans to outbid everyone in the industry for 250-750 cc leader boards. The company has managed to sell more than 450,000 motorcycles worldwide in 2015, and by the end of 2018, its ambition is to double this figure.
To do just that, Royal Enfield will invest 600 to 800 crores for this new plant that will have a capacity of 3 lakh units per annum in its first phase. This will eventually allow Royal Enfield to produce around 8.25 lakh units annually with all their three units working in full capacity. That is a significant bump from 6.7 lakh units sold during 2016-17 fiscal year.
The new development also paves way for domestic and export markets where RE has its footing. Adding to the stores in India, Royal Enfield boasts of having 20 brand stores also in cities like Sao Paulo, Melbourne, London, Milwaukee, Paris, Madrid, Barcelona, Valencia, Medellin, Dubai, Bogota, Bangkok, and Jakarta. Royal Enfield’s first direct distribution subsidiary outside India was – Royal Enfield North America (RENA) that was set up in 2015.
We also know that Royal Enfield is stepping into unknown territories. Both in some cylinders and capacity. With Harris Performance backing their engineering team and with the newly launched Royal Enfield Technology Center in the UK, RE has committed to foraying into higher capacity and better-engineered bikes. We saw Royal Enfield testing a 750cc parallel twin motor under the belly of its Café-Racer designed a motorcycle, the Continental GT. A modern retro rival for the Triumph Bonneville class.
|Royal Enfield's proposed 750cc seen testing last year|
Speaking to MCN, Siddhartha Lal, CEO Royal Enfield, stated, “Royal Enfield is the most profitable motorcycle company in the world regarding percentages, and we are thinking broader and thinking globally as we want to be the world leader in the middleweight sector.”
The 2017 models have now increased in value for up to ₹ 4000 compared to the BS-III models, and they now start now at ₹ 1.25 lakh for the Bullet 350 and goes all the way to ₹ 2.26 lakh for the Continental GT. RE’s top dog Classic 350 sells at ₹ 1.49 lakh. All of these prices are ex-showroom.