Royal Enfield has been riding high with the success of the Continental GT (CGT) internationally, and received rave reviews for the cafe racer from Indian media and fans alike. The British brand uncovered it’s strategies for expanding globally in the 250c – 750cc (mid-size premium) motorcycle segment at the launch event recently. A market that is still understated in developing countries that will only grow in the coming years and Royal Enfield wants the first mover advantage in this largely untapped segment.
Royal Enfield is looking forward to a more carefully designed and well approached pricing, distribution and promotion pattern. The company is already selling its products in over 60 countries and plans to expand their product portfolio in the mid-size premium segment. The automaker is also expanding its network in developed markets with its own people and wants to take up the pole position in each of these markets.
The iconic British motorcycle brand happens to grow on the quality over quantity ideology and wants to produce products that provide the best in terms of quality and refinement. RE is also working on a new engine that will be visible on the next generation of products, the new chassis developed for the Continental GT gave the much needed boost to the in-house R&D team. The company plans to expand its product lineup and has products planned till 2020 for launch. Some of these products are likely to be modern takes on classic bikes (Meteor, Meteor Minor, Interceptor, etc) and powering them could be a new 750cc engine.
RE also has been trying to reduce waiting periods in different cities and expects to reach a total capacity of 2,50,000 units at their new plant next year. Royal Enfield’s ambitious plans see developing markets as a key to generate volumes for the company and the company wants to emerge as a big player in such economies. Currently the Eicher Group company is eyeing Latin America and the South Asian markets to set-up shop.
With other iconic brands such as Harley-Davidson and Triumph also venturing into the mid-size premium space, it becomes very important for RE to maintain steady growth. The other brands enjoy a higher brand value, but Royal Enfield insists that their products provide usability over vanity and will provide the experience that customers are looking for in this segment at an affordable price point.