Royal Enfield Calls Out Competitors’ Tie-Ups To Succeed In Midsize Segment
Says it has been tried in the past and is not a guaranteed success methodology.
Competitors of Royal Enfield have to form tie-ups to make a dent in the midsize segment but that is not a guaranteed success methodology, says Eicher Motors’ top man.
Neither Indians nor their international partners are able to succeed in the market alone and it is very telling that they all have to tie-up, said, Managing Director of Eicher Motors, Siddhartha Lal.
He claims that such a tactic has already been tried in the past, but admits that Royal Enfield competitors will come up with “amazing products” and that “they’ll do really well”.
But, Siddhartha Lal reiterated that Royal Enfield is many steps ahead of its competition and stated that its commercial abilities in terms of sales, marketing, distribution, and service, are very strong.
At present, the midsize motorcycle segment leader (holding 90-95 percent market share) is readying a midterm plan called RE 2.0.
Under the plan, in the next 10 years, the firm aims to become a global premium motorcycle brand and will focus on expanding product portfolio, geographical reach and non-motorcycle revenue.
Speaking about demand, he said the midsize segment is down 10 percent from October last year, but it is up month-on-month.
Siddhartha Lal notes that there is no demand issue, as the firm’s inventories are currently depleted (except for its top models), but insists that there is a supply and timing issue.
Lal also played down a potential Ducati acquisition, stating he does not think the firm will do an acquisition where it can only incrementally improve the brand it purchases. But he did say all opportunities are being considered (by and) for Eicher.
Source – ETAuto.com