Mid-sized motorcycle maker Royal Enfield plans to launch at least 28 new models in the next seven years, with one new bike to be introduced every quarter as it seeks to strengthen its position both in domestic and international markets, according to a top company official.
The company is also planning to set up an assembly unit in Thailand in the next 6-12 months followed by Brazil shortly.
Royal Enfield CEO, Vinod K Dasari said that they have now got a product plan for the next five to seven years. The company is looking at launching a new model almost every quarter and that does not mean variants and colour options only. All these new models will play in the mid-segment—250cc to 750cc. That’s the company’s focus area and they will continue to strengthen it by bringing in evocative, accessible, and truly global line of products.
The company’s investments will be run in several hundred crores on new products, new technologies like electric vehicles, digital solutions, etc. They have adequate production capacity for the next 2 to 3 years, and therefore, a significant chunk of their investments will be directed towards the development of new products, technology, and capability enhancement, and global expansion.
Talking about the growth prospects in the domestic market, Dasari stated that this year it has to be seen on a month-on-month basis. The first four-five months were a washout due to COVID-19. Now their booking levels are better than pre-COVID-19-level. October was almost as good as October 2019.
Even though the company has bookings for more than one month, the total pipeline inventory, which is what is there in the factory, in trucks, depot and dealers all together, is for 15-20 days.
Royal Enfield’s growth in the international markets has been phenomenal over the last few years. The company is now excited about expanding its global presence further. They have recently set up a new assembly unit in Argentina and have plans to set up an assembly unit in Thailand in the next 6 to 12 months followed by Brazil soon.
According to Dasari, the company has been doing well in the international markets and year-to-date sales are higher than last year and Royal Enfield’s Interceptor model continues to be the best selling model for the past one year in the UK.
On the prospects of growing competition in the mid-sized motorcycle segment in India in the wake of Hero MotoCorp-Harley Davidson partnership, Honda entering cruiser segment with its H’ness CB350 and Bajaj-Triumph products slated to hit the market next fiscal, Dasari said that it will help expand the market with more attention coming towards the mid-sized segment.