Looking to expand its portfolio, Royal Enfield is currently working on an entirely new engine platform
Just last month, Royal Enfield discontinued their 500 cc motorcycle range. They were not updated to BS6 norms. Now, the company has a huge gap in the range of motorcycle it offers. On one end is the 350 cc range, and on the other is 650 cc range. The company is reportedly working on a new platform, most likely for the launch of Royal Enfield Classic 500.
The purpose of the new platform is to essentially fill the gap between the company’s bestselling 350 cc and 650 cc product range. This space is largely unexplored as of now in the country, so Royal Enfield can gain the first mover advantage. The challenge for the company is to develop something as good as its existing popular motorcycles.
Royal Enfield is currently the market leader in 350 cc segment, with a massive 95 percent market share. However, competitors like Jawa, Benelli, Kawasaki, Honda, Triumph and Husqvarna are working hard to grab their own share in the pie. In view of these developments, portfolio expansion by Royal Enfield seems to be the right thing to do. When more choices are available, it reduces the probability of customers opting for competitor products. With portfolio expansion, Royal Enfield will be in a better position to cater to varied needs and preferences of buyers.
Royal Enfield has reaffirmed that it will continue to focus on the mid-sized motorcycle segment in both domestic and international markets. The affordability factor, which has been one of the key reasons for the company’s success, will also remain a top priority for Royal Enfield. In the Indian market, most RE motorcycles are priced lower than their respective rivals.
The mid-sized motorcycle segment is expected to witness strong growth in the coming years. Users with lower capacity motorcycles are aspiring to own something more substantial whereas many potential big bike users are settling for mid-sized machines. So, there will be an increase in customer additions from both ends of the spectrum.
As may be recalled, Royal Enfield’s Continental 650 cc and Interceptor 650 cc twins have emerged bestsellers in India as well as in overseas markets – in the segment. Since the launch of the twins in 2018, the above 500 cc motorcycle segment has registered almost four-fold growth. It is possible that new products between 350 cc to 650 cc can help attract customers, as these would be offering an entirely new experience.
In addition to the new platform, Royal Enfield could also be experimenting with its existing 350 cc and 650 cc platforms. The company’s product development teams in India and UK are currently evaluating the possibility of doing more with infrastructure already available such as existing engines and frames. In case the plan works out, we could see new products based on the popular 350 cc and 650 cc platforms. The first of this new gen RE is expected to be launched next month, as the Meteor 350.