Royal Enfield will continue to retain enormous market share – Siddhartha Lal
Mr Siddhartha Lal, CEO and MD of Eicher Motors, which also owns Royal Enfield, has revealed that brand RE will continue to be dominant in the Indian auto industry.
The 250-500 cc motorcycle segment is growing exponentially. The latest entrants being Bajaj Dominar 400 and the Yamaha FZ25. At the time of Dominar 400 launch, Mr Rajiv Bajaj, MD Bajaj Auto, had famously stated that those who want a slow bike can buy Royal Enfield, and those who want a fast bike, can buy a Bajaj Dominar.
It seems like majority of buyers in the segment still prefer Royal Enfield, or a slow bike, in the words of Mr Bajaj. Royal Enfield had never replied to Mr Bajaj’s statements made regarding RE at the Dominar 400 launch, until now.
Yes, Mr Mr Siddhartha Lal has finally spoken about rivals catching up. In a recent interview with Economic Times, Mr Lal revealed that they are not worried about the competition catching up. In spite of Dominar 400 being around for about 4 months now, there has hardly been any effect on the sales of Royal Enfield, which continue to grow month after month.
Currently, Royal Enfield has 96% share in the 250-500 cc segment. Their sales last fiscal stood at 6,51,107 units. Even this year, post Dominar 400 launch, sales of RE have continued to grow. This in spite of the fact that many of their new Himalayan buyers have complained of reliability and quality issues. In the interview, the topic about quality / reliability issues was not raised.
Royal Enfield believes that the 250-500 cc segment market is going to grow by another 20% in the coming 4 years. By 2021, this segment will account for total motorcycle markets 10% share, which is huge. Royal Enfield is working towards grabbing this opportunity with both hands. They plan to launch at least one motorcycle every 12 months.
Here is what Mr Lal said in the interview – “There will be a lot of players interested in joining us but we are not going to sit back and let them take the market over. The market will grow even faster with new players but we will retain enormous marketshare.
Some are trying too much too soon, trying to do in one year what we took 10 years to accomplish. We have been single-handedly growing this business for more than 10 years and we now have the expertise, money power and inclination to bring revolutionary products.”