Royal Enfield is positioning itself to attempt a hostile takeover of mid-size motorcycle segment in all markets it operates in. Royal Enfield’s aggressive ambition is backed by the fact that its exports have grown by 50 percent in the last 18 months.Tension between these two cult motorcycle makers is boiling down to the middle-weight segment, within engine displacement range of 250 to 750 cc. RE is prepping on all fronts to make a clean sweep in export markets, by refining the top management team, increasing production capacity at a rapid pace to roll out 50 percent more volume by end of 2015, and most importantly, working on launching a new line-up of products for major markets, that will massively expand the company’s presence on the global map.
Royal Enfield is implementing a new framework of operations, regarding distribution and after sales service. In parallel, annual production capacity of its Oragadam plant will be increased to 450,000 units per annum by December 2015, from 300,000 units as of now. That is increase of 20,000 units per month from 30,000 to 50,000. Needless to say, a good number of jobs will be created in the process.
As for Royal Enfield export, the company will try and maintain CBU route, and shift to CKD operations only when certain markets demand the tariff and justify the volume, like a few in Latin America and one in South East Asian market (according to Siddhartha Lal).
Via – Times Of India