Royal Enfield eyeing new Markets

The Indian bike manufacturer Royal Enfield, an arm of Eicher Motors is eyeing new markets like Latin America and South East Asia for its global expansion. The company has a good range of mid-size motorcycles, which are in demand currently. Recently, company has also added a new cafe racer bike named Continental GT 535 to its range.

MD & CEO, Eicher Motors, Mr. Siddhartha Lal said, "We believe the mid-sized motorcycle segment is between 250cc and 750cc, so that's the space we want to play in as Royal Enfield. We believe that this market is totally under-served. We believe the market is going to move up from small bikes to mid-segment...Nobody is focusing on this segment, so that is the market we want to get into at global level. In terms of scale, it is going to come from some of the developing markets. So the first market we are ambitious about selling is Latin America. We are going to commit to the market. We are starting customer deliveries in the US right now and Australia and Japan are next, so that is our current spread.”

"We want to be number one or number two in every market in the mid-sized category, so that is our ambition in the 250cc-750 cc segment," he added to express his confidence of doing well in the mid-size segment of the global market.

Continental GT is the most powerful and advanced RE bike in the current lineup and the company believes that the bike can do well in the global markets. Launch of the bike in UK is like an event to fetch the global attention on the company.

Globally, the mid-size motorcycles makes a decent number of around 8 lakh units per annum. In these figures, around 2 lakh units are from India, in which maximum percentage is of Royal Enfield Bikes. The cafe racer is expected to increase these numbers further more, because the bike has been priced at Rs. 2.05 lakh (ex-showroom, Delhi), which is a very affordable price for it.