Royal Enfield Motors seeks to build on the growth momentum in its international business with a three-pronged strategy going forward.

Thanks to fresh motorcycle portfolios, its rich British roots, and penetration of overseas markets under its global expansion strategy, the company’s international sales have expanded more than four times in the last five years, along with market share gains in key markets. The revenue from international business has increased to Rs 2,080 crore from Rs 1,732 crore in FY22 and Rs 379 crore in FY19.

In the Americas, the company, part of Eicher Motors, has secured more than 7 per cent market share in the 250cc-750cc segment, while it has garnered a 9 per cent share in the Asia-Pacific region, Europe, and West Asia.

“We are now the highest-selling motorcycle brand in the 250cc-750cc mid-size segment in India, Korea, and the UK. Royal Enfield is the Number 2 brand in Thailand, and Number 3 in France, Italy and Australia,” Siddhartha Lal, Managing Director & CEO, Eicher Motors Ltd (EML), said in EML’s latest Annual Report.

“With a strong line-up of motorcycles, and an expanding network of premium stores and retail touchpoints across the world, I believe we have huge headroom for growth in international markets,” he added.

In the last five years, the company’s slew of launches in the mid-segment of the superbike market – 250cc-750cc – such as the 650 Twins in 2018, the Meteor 350 and the Classic 350 in 2020-21, and the new roadster Hunter 350 and cruiser Super Meteor 650 in FY23 – have helped the brand gain a foothold and market share across international markets.

Royal Enfield intends to grow its international business further by launching more products aligned to the underserved global mid-sized motorcycle market, expanding its retail network, and strengthening its global assembly capacities to ensure faster market reach.

The UK and Europe are the largest and fastest-growing markets for Royal Enfield outside India. The market has a total of 70 exclusive stores and 495 MBOs (multi-brand outlets (MBOs).

Retail expansion

During FY23, Royal Enfield increased its retail touchpoints to more than 1,150, including 207 exclusive stores and over 950 MBOs across different countries. The network will be further expanded in this fiscal.

Also, it will soon launch the Super Meteor 650 in the APAC region and the Americas. It has already been launched in Europe, Australia, and New Zealand. With strong customer interest in the Super Meteor 650, the company has started receiving bookings from Europe and other markets even before the retail launches, said Lal.

The company, in association with local partners, runs assembly facilities in Argentina, Colombia, Thailand, and Brazil to assemble and sell its bikes in those markets. Also, its CKD facilities in Nepal and Bangladesh will be up and running from this fiscal and are expected to bring in some incremental volumes. More opportunities for CKD units are being explored in the Asia-Pacific and LATAM regions.

Domestic market

Meanwhile, the leading manufacturer of high-end bikes sees intensifying competition in the domestic market. Recently, Hero and Bajaj, in collaboration with their respective global premium bike partners, have launched premium bikes that industry analysts and brokerage firms reckon would dent Royal Enfield’s volumes and market share.

During Q1 of this fiscal, Royal Enfield had about 92 per cent market share in the 251cc-800cc bike segment. Its share in the above 125cc segment was 33 per cent, and 8 per cent share in the overall motorcycle segment.

In an apparent reference to growing competition in the domestic market, Lal said: “We have a strong legacy and a deep understanding of motorcycles and our customers. But our success has been deeply rooted in our ability to remain fiercely unique.

“We are cognizant of trends and competition, but we don’t obsess about them, or attempt to replicate what works for others. This differentiated approach has given the brand a unique character and distinct position,” he added.

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