Motorcycle manufacturer Royal Enfield Motors has said that its latest twin and other upcoming new platforms will mark the new growth phase which will drive strong volume growth not just in the domestic market, but also overseas.
With the introduction of two new bikes — Interceptor INT 650 (starts at ₹2.5 lakh) and Continental GT 650 (₹2.65 lakh) on its new ‘twin’ platform — the company expects its sales to gather pace in several international markets.
“The new bikes will be premium products for India and similar markets and entry level motorcycles for developed markets,” Shaji Koshy, Head-India Business, Royal Enfield Motors, told BusinessLine here.
The company asserted that it had created the necessary foundation in terms of technology and quality to drive its premium play in the Indian market as also grow the volumes in the global mid-sized bike market (250cc-750cc).
The new motorcycles will be sold as premium products in South-East Asian and Latin American markets, where it has been improving the brand presence. For North America and Europe, the new models, as entry level bikes, are expected to enrich the product mix and help in growing volumes.
Koshy was confident that the strong momentum for single cylinder bikes in markets like North America, where its annual volumes are likely to touch about 2,000 units this year, will help grow the sales of new bikes as well. “We are happy with the kind of responses we have been getting for our twins in various markets,” he said.
In India, the company bets on growing premiumisation (preference for higher CC bikes) to sustain its volumes despite competition. Also, it sees a huge potential to tap the existing 3.5 million customer base.
“Many of our customers are keen to upgrade to accessible higher CC bikes and hence we expect them to buy our new 650cc models. We are also seeing a new set of customers, who never drove a Royal Enfield or a higher CC bike in the past,” said Koshy.
The company is working with a strong focus on after-market and customer retention efforts, besides planing to boost revenues from apparel and accessories.
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