Royal Enfield is looking to strengthen its position by expanding its portfolio both in domestic as well as overseas markets
Royal Enfield recently launched its cruiser motorcycle Meteor 350 after a long and arduous wait. The bike had been highly anticipated for almost a year now and since its launch has mostly received positive responses from different quarters. However, Royal Enfield will not be limiting itself with this launch.
The Chennai-based bikemaker is looking to expand its portfolio – both domestic and international – by introducing as many 28 new models, in the next seven years. Starting with the Meteor 350, which was recently launched, the next bike planned for launch is the new gen Classic 350 in next quarter. This is expected to be followed by new gen Bullet 350, Electra 350, Cruiser 650, Himalayan 650, Classic Electric etc.
Royal Enfield Future Plans
Speaking to PTI on Royal Enfield’s future plans, CEO Vinod K Dasari said that the company has got a product plan for the next seven years or so. He added that the brand is looking to launch a new product every quarter which means that at least 28 new bikes will be launched in the next seven years. This is to strengthen its position in the domestic as well as international markets.
Royal Enfield recently set up a new manufacturing facility in the Argentine capital of Buenos Aires which became the company’s first overseas production base outside India. The company is also looking to set up a new manufacturing facility in Thailand in the next 6-12 months followed by one in Brazil in the future.
He further goes on to add that all these new motorcycles will play in the mid-segment, i.e., 250cc-750cc displacement. Dasari did not divulge any details regarding the investment required for the upcoming models but said that the company will spend “several hundred crores on new products, new technologies like electric vehicles, digital solutions and so on”. Yes, an all electric Royal Enfield based on the Classic platform is due for launch in 2023.
Dasari further elaborates that the company has enough production capacity for the next 2-3 years and, therefore, a significant amount of its investments will be flown towards development of new technology including digital solutions, enhancements and new products including EVs; and global expansion.
Royal Enfield’s Growth Prospects This Year
When questioned about the brand’s growth prospects in the domestic market in the current fiscal year, Dasari said this year has to be seen on a month-on-month basis. The first four to five months businesses were seriously affected due to the outbreak of novel coronavirus and the subsequent nationwide lockdown.
However, now the company has achieved booking levels better than pre-Covid levels. He claims that even though Royal Enfield has received bookings for more than one month, it has inventory in the pipeline left to suffice 15-20 days.
Royal Enfield, primarily known for its mid-segment displacement motorcycles, has been in the news very often lately due to the launch of Meteor 350. It is offered in three variants- Fireball, Stellar and Supernova and has been priced at Rs 1.75 lakh for the base variant and Rs 1.90 lakh for the top-spec variant. (Both prices are ex-showroom).