Chennai based Royal Enfield current offers 11 motorcycles in the Cafe Racer, Cruiser, Retro Street, and Standard Street range. All these motorcycles are offered on three engine platforms, 350 cc, 500 cc and 535 cc.
Now, the company has confirmed to be working on two more engine platforms in the 250 cc to 750 cc range, which will help them launch many more motorcycles. These new RE machines will not only be launched in India, but with an aim to capture a major chunk of the mid-size motorcycle market across the globe.
To make this happen, the company plans to invest INR 500 crores on R&D. This will help in product development, capacity expansion and for the betterment of their two new technology development centers – one each in Chennai and Leicestershire, UK. Both these centers will be operational by the end of this year with the Leicestershire facility concentrating on Royal Enfield’s new product line.
Speaking about their new engines, it is not yet clear as to what will be the exact cubic capacities of new RE engines, but it is confirmed that they power their three new models – all of which will be launched by 2016. These new engines include a new parallel twin engine. One of the three is rumoured to be a 410cc single cylinder engine. This one will power a new scrambler styled RE, which will be called Himalayan. First spy shot of RE Himalayan emerged online a few days back.
Sales wise, Royal Enfield has been reporting increased sales with 92,845 units sold in the first quarter of this year at a growth of 44.5 percent over sales in the same quarter of 2014. The company exported 2,343 units in the first quarter, an increase of 62 percent over exports in the same period of the previous year while sales in the month of April increased 42% at 33,918 units.
With targets to become the No.1 mid-sized motorcycle maker, the company is enhancing operations of distribution and after sales service, Production from Royal Enfield Oragadam plant is being increased from 300,000 units to 450,000 units by the end of this year with increased number of jobs also being created for the purpose.