Royal Enfield Motors, part of Eicher Motors, said the company’s first electric bike launch plan, slated for 2025, is on track even as it will stay invested in ICE engine technologies to launch new superbikes to fill the gaps in the middle-weight bike segment.
“Electric vehicle (EV) programme is in different stages of development. Our plan has always been to hit the market some time in 2025 and it still stands,” Siddhartha Lal, Managing Director of Eicher Motors, said here.
“We still have 24 months and use this period to refine and improve the product by doing more tests and validations. We are working hard on the EV and the idea is to come out with a product that attracts buyers and changes the market dynamics,” he added.
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EV biz vertical
The company’s EV programme is aimed at creating differentiated, high-performance, and fun-to-ride electric motorcycles with Royal Enfield DNA. It has already created a separate vertical for its EV business and has committed large investments.
The process with which the company approaches EV development is through a dedicated team. It has also roped in Mario Alvisi, previously with Ducati, as Chief Growth officer, to support the EV business. Royal Enfield has close to a 100-member strong team on the engineering and commercial side focused on building not just an electric motorcycle, but also a comprehensive EV business.
Eicher Motors has made a strategic investment in Stark Future, a Spanish electric mobility company. The company sees potential synergies in this partnership and the plan is to co-develop and leverage each other’s strengths.
On the supply chain for the EV, B Govindarajan, CEO, Royal Enfield Motors, said the company would still depend on imports for some parts such as battery cells, while for the remaining major aggregates, the company is either building on its own or through supply chain partners. “While we have already roped in 11-12 new suppliers, we are also evaluating more,” he added.
Earlier, Lal said the company has adopted a new ‘Rebalance’ strategy to go beyond profitability and achieve sustained long-term growth. The Rebalance approach is based on four key pillars. They include a growth focus with a balance on profitability, sustainability, ICE & EV, and brand-led customer experience.
He said that while seeking to maintain a strong market share in the domestic market, Royal Enfield would continue to strengthen its focus on international markets, prompted by a gain in market share across developed and developing markets, with a wide portfolio of products in the middle-weight bike segment (250-750cc).
“It is not easy to market middle-weight bikes in some of the global markets. Ownership experience is challenging, as it’s a more transactional one. We want to make owning of mid-segment bike more fulfilling in these markets as part of our growth plans,” he added.