Leading two-wheeler maker Royal Enfield Motors, part of Eicher Motors, said the company is gearing up to meet the growing demand both the domestic and export markets as supply chain-related issues have eased.

While the company has a strong order book, it’s recently launched new bike Hunter 350 has seen good response. The company has produced more than 50,000 units of Hunter since its introduction in August. “We have a healthy order book for Hunter. From the time we launched the bike, Hunter has received an outstanding response, and every day the number is growing,” B Govindarajan, CEO, Royal Enfield Motors, told businessline.

Hunter 350 was launched to attract a new set of riders who were looking for a lighter bike at an attractive price.

Govindarajan explains that every product launch is based on customer feedback across India. “We always explore whether there is adjacency to every product to meet some specific requirements of buyers,” he added.

Supply chain stability

Meanwhile, Royal Enfield, which operates three factories near Chennai, says that by and large semiconductor shortage issue is under control and it is not a headwind now. “Supply chain stability is coming gradually and we are also ramping up,” says Govindarajan.

Royal Enfield produces about 3,100 units per day. However, with some debottlenecking, it can ramp up the capacity to 3,500-3,600 units a day though its total capacity is 4,000 units a day. The company is also now working on bringing flexibility in the manufacturing process and in the supply chain areas in order to produce required models in a quick time.

Govindarajan said the company has started shipments of the new Hunter 350 to the European market and will soon ship to the Asia Pacific and North American markets.

Global markets

With a strong product lineup, Royal Enfield witnessed 4X growth in international markets in the past three years. In most of the markets, where it has a presence, the company is inching towards securing a 10 per cent market share in the mid-segment motorcycle market (250cc-650cc), which offers an addressable market size of about a million units (globally) for the company.

“In a market like North America, Meteor 350 has been an outstanding success and it is a top-selling product in the segment. Outside India, there is a huge potential for Royal Enfield to work and capitalise,” he says.

Royal Enfield has over 2,100 touchpoints across India, which includes the full format stores as well as smaller studio stores. It has more than 840 touchpoints in the international markets.

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