Eicher Motors targets ‘big numbers’ for Royal Enfield motorcycles in new international markets, including Latin America and the South- East Asia, according to Siddhartha Lal, Managing Director and CEO.

Addressing reporters over a teleconference, Lal said the Royal Enfield brand has consolidated its position in the mid-segment motorcycles – 350-750 cc – in the domestic and international markets. It has the production capacity and capability to target “global leadership” in this segment, he said.

The company, which recently announced its entry into Colombia through the Corbeta Group, its exclusive partner for marketing, dealership and servicing, plans to set up a CKD (completely knocked down) production line in the South American country.

The company has ‘large ambition in Colombia and Latin America’ where it plans to set up multiple showrooms before the year-end. It is a growing market for large motorcycles, and the midsized segment is untapped. Over the next three years, it will also tap new markets, including South East Asia.

Eicher Motors is no longer keen on small numbers with sales of 50-100 units, but is looking for market leadership.

The value proposition that Royal Enfield offers and its positioning as an attractive option for those looking for ‘upgrades’ from smaller capacity two-wheelers is contributing to the growth in sales, he said.

The mid-segment motorcycle market is under-served in the domestic and international markets, Lall said.

Sales of Royal Enfield motorcycles have nearly doubled to 1.38 lakh units in the first half of 2014 compared with the corresponding period last year, he said.

The company plans to produce over three lakh units this year and in 2015 about four lakh units. The average waiting period for the motorcycles is about five months in the domestic markets, Lall added.

Related Topics
comment COMMENT NOW